UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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, 6 th Floor |
| | Newark, New Jersey 07102 |
| |
| Name and address of agent for service: | | Andrew R. French |
| | 655 Broad Street, 6 th Floor |
| | Newark, New Jersey 07102 |
| |
| Registrant’s telephone number, including area code: | | |
| |
| Date of fiscal year end: | | 9/30/2024 |
| |
| Date of reporting period: | | 9/30/2024 |
Item 1 – Reports to Stockholders
| | (a) | Report transmitted to stockholders pursuant to Rule 30e-1 under the Act (17 CFR 270.30e-1). |
ANNUAL SHAREHOLDER REPORT – September 30, 2024
This annual shareholder report contains important information about the Class A shares of PGIM Balanced Fund (the “Fund”) for the period of
October 1, 2023 to September 30, 2024.
You can find additional information about the Fund at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
. You can also request
this information by contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
PGIM Balanced Fund—Class A | | |
WHAT AFFECTED THE FUND’S PERFORMANCE DURING THE REPORTING PERIOD?
■
During the reporting period, strong market conditions drove equities more than 25% higher, while bonds returned over 10%. Several trends—
including solid economic and earnings growth, enthusiasm related to developments in artificial intelligence, inflation trending toward the US
Federal Reserve’s 2% target, and easing interest rates—fueled the market advance despite elevated geopolitical risks.
■
The Fund’s performance relative to the Custom Blended Index benefited from asset allocation positioning, with a consistent overweight to
equities and underweight to bonds adding value as equities sharply outperformed.
■
Exposure to cash detracted from the Fund’s relative performance, as cash returns lagged both equities and bonds. Other detractors included
value factors within US large-cap equities, top-down factors within international equities, and yield curve positioning within bonds. (A yield curve
is a line graph that illustrates the relationship between the yields and maturities of fixed income securities. It is created by plotting the yields of
different maturities for the same type of bonds.)
■
The Fund uses derivatives for various reasons, including to equitize cash positions, for liquidity purposes, to help manage duration positions
and yield curve exposure, and to facilitate implementation of the overall investment approach. During the reporting period, the Fund held stock
index futures, interest rate futures, forward foreign currency exchange contracts, options and swaps, and credit default swap indexes.
Collectively, the use of such derivatives had a small, positive impact on the Fund's performance.
HOW HAS THE FUND PERFORMED OVER THE PAST 10 YEARS?
The Fund’s past performance is not a good predictor of the Fund’s future performance.
The returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or call (800) 225-1852 or (973) 367-3529 from outside the US for more recent performance data.
The line graph reflects a hypothetical $10,000 investment in Class A shares and assumes that all recurring fees (including management fees)
were deducted and dividend and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would
have been lower.
Cumulative Performance: September 30, 2014 to September 30, 2024 Initial Investment of $10,000 |
The line graph reflects the return on the Fund's Class A shares with sales charges.
Average Annual Total Returns as of 9/30/2024 |
| | | |
Class A with sales charges | | | |
Class A without sales charges | | | |
Broad-Based Securities Market Index: Bloomberg US Aggregate Bond Index
| | | |
Broad-Based Securities Market Index: S&P 500 Index | | | |
| | | |
* Prior to February 3, 2020, the Custom Blended Index consisted of the S&P 500 Index (50%), the Bloomberg US Aggregate Bond Index (40%), the Russell 2000 Index (5%), and the
MSCI Europe, Australasia and Far East (EAFE) Net Dividend (ND) Index (5%). Effective as of February 3, 2020, the Custom Blended Index consists of the S&P 500 Index (44%), the
Bloomberg US Aggregate Bond Index (40%), the Russell 2000 Index (4%), and the MSCI All Country World Ex-US Index (12%).
WHAT ARE SOME KEY FUND STATISTICS AS OF
9/
30/2024?
| |
| |
Total advisory fees paid for the year | |
Portfolio turnover rate for the year | |
WHAT ARE SOME CHARACTERISTICS OF
TH
E FUND’S HOLDINGS AS OF 9/30/2024?
| |
| |
U.S. Government Agency Obligations | |
Semiconductors & Semiconductor Equipment | |
Commercial Mortgage-Backed Securities | |
| |
U.S. Treasury Obligations | |
Technology Hardware, Storage & Peripherals | |
| |
Collateralized Loan Obligations | |
Interactive Media & Services | |
Oil, Gas & Consumable Fuels | |
| |
| |
| |
| |
| |
| |
| |
Affiliated Mutual Fund - Short-Term Investment (0.3% represents investments purchased with collateral from securities on loan) | |
| |
Health Care Equipment & Supplies | |
| |
| |
| |
Consumer Staples Distribution & Retail | |
Health Care Providers & Services | |
Diversified Telecommunication Services | |
| |
Life Sciences Tools & Services | |
Residential Mortgage-Backed Securities | |
| |
| |
| |
| |
Hotels, Restaurants & Leisure | |
| |
Real Estate Investment Trusts (REITs) | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Electronic Equipment, Instruments & Components | |
| |
| |
| |
| |
| |
Other assets in excess of liabilities | |
| |
* Consists of Industries that each make up less than 0.5% of the Fund's net assets
WERE THERE ANY CHANGES TO THE FUND THIS YEAR?
The following is a summary of certain changes to the Fund since October 1, 2023:
■
The Fund's principal risk disclosure was revised to include Sector Exposure Risk as a principal risk of the Fund due to changes in the Fund's
portfolio which may result in greater exposure to certain economic sectors.
For more complete information, you should review the Fund’s next prospectus, which we expect to be available by November 30, 2024
at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by request at (800) 225-1852.
You can find additional information at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by scanning the QR code below,
including the Fund’s prospectus, financial information, fund holdings, and proxy voting information. You can also request this information by
contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
To receive your fund documents online, go to
pgim.com/investments/resource/edelivery
and enroll.
ANNUAL SHAREHOLDER REPORT – September 30, 2024
This annual shareholder report contains important information about the Class C shares of PGIM Balanced Fund (the “Fund”) for the period of
October 1, 2023 to September 30, 2024.
You can find additional information about the Fund at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
. You can also request
this information by contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
PGIM Balanced Fund—Class C | | |
WHAT AFFECTED THE FUND’S PERFORMANCE DURING THE REPORTING PERIOD?
■
During the reporting period, strong market conditions drove equities more than 25% higher, while bonds returned over 10%. Several trends—
including solid economic and earnings growth, enthusiasm related to developments in artificial intelligence, inflation trending toward the US
Federal Reserve’s 2% target, and easing interest rates—fueled the market advance despite elevated geopolitical risks.
■
The Fund’s performance relative to the Custom Blended Index benefited from asset allocation positioning, with a consistent overweight to
equities and underweight to bonds adding value as equities sharply outperformed.
■
Exposure to cash detracted from the Fund’s relative performance, as cash returns lagged both equities and bonds. Other detractors included
value factors within US large-cap equities, top-down factors within international equities, and yield curve positioning within bonds. (A yield curve
is a line graph that illustrates the relationship between the yields and maturities of fixed income securities. It is created by plotting the yields of
different maturities for the same type of bonds.)
■
The Fund uses derivatives for various reasons, including to equitize cash positions, for liquidity purposes, to help manage duration positions
and yield curve exposure, and to facilitate implementation of the overall investment approach. During the reporting period, the Fund held stock
index futures, interest rate futures, forward foreign currency exchange contracts, options and swaps, and credit default swap indexes.
Collectively, the use of such derivatives had a s
mal
l, positive impact on the Fund's performance.
HOW HAS THE FUND PERFORMED OVER THE PAST 10 YEARS?
The Fund’s past performance is not a good predictor of the Fund’s future performance.
The returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or call (800) 225-1852 or (973) 367-3529 from outside the US for more recent performance data.
The line graph reflects a hypothetical $10,000 investment in Class C shares and assumes that all recurring fees (including management fees)
were deducted and dividend and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would
have been lower.
Cumulative Performance: September 30, 2014 to September 30, 2024 Initial Investment of $10,000 |
Average Annual Total Returns as of 9/30/2024 |
| | | |
Class C with sales charges | | | |
Class C without sales charges | | | |
Broad-Based Securities Market Index: Bloomberg US Aggregate Bond | | | |
Broad-Based Securities Market Index: S&P 500 Index | | | |
| | | |
* Prior to February 3, 2020, the Custom Blended Index consisted of the S&P 500 Index (50%), the Bloomberg US Aggregate Bond Index (40%), the Russell 2000 Index (5%), and the
MSCI Europe, Australasia and Far East (EAFE) Net Dividend (ND) Index (5%). Effective as of February 3, 2020, the Custom Blended Index consists of the S&P 500 Index (44%), the
Bloomberg US Aggregate Bond Index (40%), the R
usse
ll 2000 Index (4%), and the MSCI All Country World Ex-US Index (12%).
WHAT ARE SOME KEY FUND STATISTICS AS OF 9/30/2024?
| |
| |
Total advisory fees paid for the year | |
Portfolio turnover rate for the year | |
WHAT
A
RE SOME CHARACTERISTICS OF THE FUND’S HOLDINGS AS OF 9/30/2024?
| |
| |
U.S. Government Agency Obligations | |
Semiconductors & Semiconductor Equipment | |
Commercial Mortgage-Backed Securities | |
| |
U.S. Treasury Obligations | |
Technology Hardware, Storage & Peripherals | |
| |
Collateralized Loan Obligations | |
Interactive Media & Services | |
Oil, Gas & Consumable Fuels | |
| |
| |
| |
| |
| |
| |
| |
Affiliated Mutual Fund - Short-Term Investment (0.3% represents investments purchased with collateral from securities on loan) | |
| |
Health Care Equipment & Supplies | |
| |
| |
| |
Consumer Staples Distribution & Retail | |
Health Care Providers & Services | |
Diversified Telecommunication Services | |
| |
Life Sciences Tools & Services | |
Residential Mortgage-Backed Securities | |
| |
| |
| |
| |
Hotels, Restaurants & Leisure | |
| |
Real Estate Investment Trusts (REITs) | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Electronic Equipment, Instruments & Components | |
| |
| |
| |
| |
| |
Other assets in excess of liabilities | |
| |
* Consists of Industries that each make up less than 0.5% of the Fund's net assets
WERE THERE ANY CHANGES TO THE FUND THIS YEAR?
The following is a summary of certain changes to the Fund since October 1, 2023:
■
The Fund's principal risk disclosure was revised to include Sector Exposure Risk as a principal risk of the Fund due to changes in the Fund's
portfolio which may result in greater exposure to certain economic sectors.
For more complete information, you should review the Fund’s next prospectus, which we expect to be available by November 30, 2024
at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by request at (800) 225-1852.
You can find additional information at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by scanning the QR code below,
including the Fund’s prospectus, financial information, fund holdings, and proxy voting information. You can also request this information by
contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
To receive your fund documents online, go to
pgim.com/investments/resource/edelivery
and enroll.
ANNUAL SHAREHOLDER REPORT – September 30, 2024
This annual shareholder report contains important information about the Class R shares of PGIM Balanced Fund (the “Fund”) for the period of
October 1, 2023 to September 30, 2024.
You can find additional information about the Fund at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
. You can also request
this information by contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
PGIM Balanced Fund—Class R | | |
WHAT AFFECTED THE FUND’S PERFORMANCE DURING THE REPORTING PERIOD?
■
During the reporting period, strong market conditions drove equities more than 25% higher, while bonds returned over 10%. Several trends—
including solid economic and earnings growth, enthusiasm related to developments in artificial intelligence, inflation trending toward the US
Federal Reserve’s 2% target, and easing interest rates—fueled the market advance despite elevated geopolitical risks.
■
The Fund’s performance relative to the Custom Blended Index benefited from asset allocation positioning, with a consistent overweight to
equities and underweight to bonds adding value as equities sharply outperformed.
■
Exposure to cash detracted from the Fund’s relative performance, as cash returns lagged both equities and bonds. Other detractors included
value factors within US large-cap equities, top-down factors within international equities, and yield curve positioning within bonds. (A yield curve
is a line graph that illustrates the relationship between the yields and maturities of fixed income securities. It is created by plotting the yields of
different maturities for the same type of bonds.)
■
The Fund uses derivatives for various reasons, including to equitize cash positions, for liquidity purposes, to help manage duration positions
and yield curve exposure, and to facilitate implementation of the overall investment approach. During the reporting period, the Fund held stock
index futures, interest rate futures, forward foreign currency exchange contracts, options and swaps, and credit default swap indexes.
Collectively, the use of such der
ivati
ves had a small, positive impact on the Fund's performance.
HOW HAS THE FUND PERFORMED OVER THE PAST 10 YEARS?
The Fund’s past performance is not a good predictor of the Fund’s future performance.
The returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or call (800) 225-1852 or (973) 367-3529 from outside the US for more recent performance data.
The line graph reflects a hypothetical $10,000 investment in Class R shares and assumes that all recurring fees (including management fees)
were deducted and dividend and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would
have been lower.
Cumulative Performance: September 30, 2014 to September 30, 2024 Initial Investment of $10,000 |
Average Annual Total Returns as of 9/30/2024 |
| | | |
| | | |
Broad-Based Securities Market Index: Bloomberg US Aggregate Bond | | | |
Broad-Based Securities Market Index: S&P 500 Index | | | |
| | | |
* Prior to February 3, 2020, the Custom Blended Index co
nsis
ted of the S&P 500 Index (50%), the Bloomberg US Aggregate Bond Index (40%), the Russell 2000 Index (5%), and the
MSCI Europe, Australasia and Far East (EAFE) Net Dividend (ND) Index (5%). Effective as of February 3, 2020, the Custom Blended Index consists of the S&P 500 Index (44%), the
Bloomberg US Aggregate Bond Index (40%), the Ru
sse
ll 2000 Index (4%), and the MSCI All Country World Ex-US Index (12%).
WHAT ARE SOME KEY FUND STATISTICS AS OF 9/30/2024?
| |
| |
Total advisory fe e s paid for the year | |
Portfolio turnover rate for the year | |
WHAT ARE SOME CHARACTERISTICS OF THE FUND’S HOLDINGS AS OF 9/30/2024?
| |
| |
U.S. Government Agency Obligations | |
Semiconductors & Semiconductor Equipment | |
Commercial Mortgage-Backed Securities | |
| |
U.S. Treasury Obligations | |
Technology Hardware, Storage & Peripherals | |
| |
Collateralized Loan Obligations | |
Interactive Media & Services | |
Oil, Gas & Consumable Fuels | |
| |
| |
| |
| |
| |
| |
| |
Affiliated Mutual Fund - Short-Term Investment (0.3% represents investments purchased with collateral from securities on loan) | |
| |
Health Care Equipment & Supplies | |
| |
| |
| |
Consumer Staples Distribution & Retail | |
Health Care Providers & Services | |
Diversified Telecommunication Services | |
| |
Life Sciences Tools & Services | |
Residential Mortgage-Backed Securities | |
| |
| |
| |
| |
Hotels, Restaurants & Leisure | |
| |
Real Estate Investment Trusts (REITs) | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Electronic Equipment, Instruments & Components | |
| |
| |
| |
| |
| |
Other assets in excess of liabilities | |
| |
* Consists of Ind
ustries
that each make up less than 0.5% of the Fund's net assets
WERE THERE ANY CHANGES TO THE FUND THIS YEAR?
The following is a summary of certain changes to the Fund since October 1, 2023:
■
The Fund's principal risk disclosure was revised to include Sector Exposure Risk as a principal risk of the Fund due to changes in the Fund's
portfolio which may result in greater exposure to certain economic sectors.
For more complete information, you should review the Fund’s next prospectus, which we expect to be available by November 30, 2024
at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by request at (800) 225-1852.
You can find additional information at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by scanning the QR code below,
including the Fund’s prospectus, financial information, fund holdings, and proxy voting information. You can also request this information by
contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
To receive your fund documents online, go to
pgim.com/investments/resource/edelivery
and enroll.
ANNUAL SHAREHOLDER REPORT – September 30, 2024
This annual shareholder report contains important information about the Class Z shares of PGIM Balanced Fund (the “Fund”) for the period of
October 1, 2023 to September 30, 2024.
You can find additional information about the Fund at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
. You can also request
this information by contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
PGIM Balanced Fund—Class Z | | |
WHAT AFFECTED THE FUND’S PERFORMANCE DURING THE REPORTING PERIOD?
■
During the reporting period, strong market conditions drove equities more than 25% higher, while bonds returned over 10%. Several trends—
including solid economic and earnings growth, enthusiasm related to developments in artificial intelligence, inflation trending toward the US
Federal Reserve’s 2% target, and easing interest rates—fueled the market advance despite elevated geopolitical risks.
■
The Fund’s performance relative to the Custom Blended Index benefited from asset allocation positioning, with a consistent overweight to
equities and underweight to bonds adding value as equities sharply outperformed.
■
Exposure to cash detracted from the Fund’s relative performance, as cash returns lagged both equities and bonds. Other detractors included
value factors within US large-cap equities, top-down factors within international equities, and yield curve positioning within bonds. (A yield curve
is a line graph that illustrates the relationship between the yields and maturities of fixed income securities. It is created by plotting the yields of
different maturities for the same type of bonds.)
■
The Fund uses derivatives for various reasons, including to equitize cash positions, for liquidity purposes, to help manage duration positions
and yield curve exposure, and to facilitate implementation of the overall investment approach. During the reporting period, the Fund held stock
index futures, interest rate futures, forward foreign currency exchange contracts, options and swaps, and credit default swap indexes.
Collectively, the use of such derivatives had a small, positive impact on the Fund's performance.
HOW HAS THE FUND PERFORMED OVER THE PAST 10 YEARS?
The Fund’s past performance is not a good predictor of the Fund’s future performance.
The returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or call (800) 225-1852 or (973) 367-3529 from outside the US for more recent performance data.
The line graph reflects a hypothetical $10,000 investment in Class Z shares and assumes that all recurring fees (including management fees)
were deducted and dividend and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would
have been lower.
Cumulative Performance: September 30, 2014 to September 30, 2024 Initial Investment of $10,000 |
Average Annual Total Returns as of 9/30/2024 |
| | | |
| | | |
Broad-Based Securities Market Index: Bloomberg US Aggregate Bond | | | |
Broad-Based Securities Market Index: S&P 500 Index | | | |
| | | |
* Prior to February 3, 2020, the Custom Blended Index consisted of the S&P 500 Index (50%), the Bloomberg US Aggregate Bond Index (40%), the Russell 2000 Index (5%), and the
MSCI Europe, Australasia and Far East (EAFE) Net Dividend (ND) Index (5%). Effective as of February 3, 2020, the Custom Blended Index consists of the S&P 500 Index (44%), the
Bloomberg US Aggregate Bond Index (40%), the Russell 2000 Index (4%), and the MSCI All Country World Ex-US Index (12%).
WHAT ARE SOME KEY FUND STATISTICS AS OF 9/30/2024?
| |
| |
Total advisory fees paid for the year | |
Portfolio turnover rate for the year | |
WHAT ARE
SOME
CHARACTERISTICS OF THE FUND’S HOLDINGS AS OF 9/30/2024?
| |
| |
U.S. Government Agency Obligations | |
Semiconductors & Semiconductor Equipment | |
Commercial Mortgage-Backed Securities | |
| |
U.S. Treasury Obligations | |
Technology Hardware, Storage & Peripherals | |
| |
Collateralized Loan Obligations | |
Interactive Media & Services | |
Oil, Gas & Consumable Fuels | |
| |
| |
| |
| |
| |
| |
| |
Affiliated Mutual Fund - Short-Term Investment (0.3% represents investments purchased with collateral from securities on loan) | |
| |
Health Care Equipment & Supplies | |
| |
| |
| |
Consumer Staples Distribution & Retail | |
Health Care Providers & Services | |
Diversified Telecommunication Services | |
| |
Life Sciences Tools & Services | |
Residential Mortgage-Backed Securities | |
| |
| |
| |
| |
Hotels, Restaurants & Leisure | |
| |
Real Estate Investment Trusts (REITs) | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Electronic Equipment, Instruments & Components | |
| |
| |
| |
| |
| |
Other assets in excess of liabilities | |
| |
* Consists of Industries that each make up less than 0.5% of the Fund's net assets
WERE THERE ANY CHANGES TO THE FUND THIS YEAR?
The following is a summary of certain changes to the Fund since October 1, 2023:
■
The Fund's principal risk disclosure was revised to include Sector Exposure Risk as a principal risk of the Fund due to changes in the Fund's
portfolio which may result in greater exposure to certain economic sectors.
For more complete information, you should review the Fund’s next prospectus, which we expect to be available by November 30, 2024
at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by request at (800) 225-1852.
You can find additional information at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by scanning the QR code below,
including the Fund’s prospectus, financial information, fund holdings, and proxy voting information. You can also request this information by
contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
To receive your fund documents online, go to
pgim.com/investments/resource/edelivery
and enroll.
ANNUAL SHAREHOLDER REPORT – September 30, 2024
This annual shareholder report contains important information about the Class R6 shares of PGIM Balanced Fund (the “Fund”) for the period of
October 1, 2023 to September 30, 2024.
You can find additional information about the Fund at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
. You can also request
this information by contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
PGIM Balanced Fund—Class R6 | | |
WHAT AFFECTED THE FUND’S PERFORMANCE DURING THE REPORTING PERIOD?
■
During the reporting period, strong market conditions drove equities more than 25% higher, while bonds returned over 10%. Several trends—
including solid economic and earnings growth, enthusiasm related to developments in artificial intelligence, inflation trending toward the US
Federal Reserve’s 2% target, and easing interest rates—fueled the market advance despite elevated geopolitical risks.
■
The Fund’s performance relative to the Custom Blended Index benefited from asset allocation positioning, with a consistent overweight to
equities and underweight to bonds adding value as equities sharply outperformed.
■
Exposure to cash detracted from the Fund’s relative performance, as cash returns lagged both equities and bonds. Other detractors included
value factors within US large-cap equities, top-down factors within international equities, and yield curve positioning within bonds. (A yield curve
is a line graph that illustrates the relationship between the yields and maturities of fixed income securities. It is created by plotting the yields of
different maturities for the same type of bonds.)
■
The Fund uses derivatives for various reasons, including to equitize cash positions, for liquidity purposes, to help manage duration positions
and yield curve exposure, and to facilitate implementation of the overall investment approach. During the reporting period, the Fund held stock
index futures, interest rate futures, forward foreign currency exchange contracts, options and swaps, and credit default swap indexes.
Collectively, the use of such derivatives had a small, positive impact on the Fund's performance.
HOW HAS THE FUND PERFORMED OVER THE PAST 10 YEARS?
The Fund’s past performance is not a good predictor of the Fund’s future performance.
The returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or call (800) 225-1852 or (973) 367-3529 from outside the US for more recent performance data.
The line graph reflects a hypothetical $10,000 investment in Class R6 shares and assumes that all recurring fees (including management fees)
were deducted and dividend and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would
have been lower.
Cumulative Performance: November 28, 2017 to September 30, 2024 Initial Investment of $10,000 |
Average Annual Total Returns as of 9/30/2024 |
| | | |
| | | |
Broad-Based Securities Market Index: Bloomberg US Aggregate | | | |
Broad-Based Securities Market Index: S&P 500 Index | | | |
| | | |
* Prior to February 3, 2020, the Custom Blended Index consisted of the S&P 500 Index (50%), the Bloomberg US Aggregate Bond Index (40%), the Russell 2000 Index (5%), and the
MSCI Europe, Australasia and Far East (EAFE) Net Dividend (ND) Index (5%). Effective as of February 3, 2020, the Custom Blended Index consists of the S&P 500 Index (44%), the
Bloomberg US Aggregate Bond Index (40%), the Russell 2000 Index (4%), and the MSCI All Country World Ex-US Index (12%).
Since Inception returns are provided for the share class since it has less than 10 fiscal years of returns. Since Inception returns for the Indexes are measured from the closest
month-end to the class’s inception date.
WHAT ARE SOME KEY FUND STATISTICS AS OF 9/30/2024?
| |
| |
Total advisory fees paid for the year | |
Portfolio turnover rate for the year | |
WHAT ARE SOME CHARACTERISTICS OF THE FUND’S HOLDINGS AS OF 9/30/2024?
| |
| |
U.S. Government Agency Obligations | |
Semiconductors & Semiconductor Equipment | |
Commercial Mortgage-Backed Securities | |
| |
U.S. Treasury Obligations | |
Technology Hardware, Storage & Peripherals | |
| |
Collateralized Loan Obligations | |
Interactive Media & Services | |
Oil, Gas & Consumable Fuels | |
| |
| |
| |
| |
| |
| |
| |
Affiliated Mutual Fund - Short-Term Investment (0.3% represents investments purchased with collateral from securities on loan) | |
| |
Health Care Equipment & Supplies | |
| |
| |
| |
Consumer Staples Distribution & Retail | |
Health Care Providers & Services | |
Diversified Telecommunication Services | |
| |
Life Sciences Tools & Services | |
Residential Mortgage-Backed Securities | |
| |
| |
| |
| |
Hotels, Restaurants & Leisure | |
| |
Real Estate Investment Trusts (REITs) | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Electronic Equipment, Instruments & Components | |
| |
| |
| |
| |
| |
Other assets in excess of liabilities | |
| |
* Consists of Industries that each make up less than 0.5% of the Fund's net assets
WERE THERE ANY CHANGES TO THE FUND THIS YEAR?
The following is a summary of certain changes to the Fund since October 1, 2023:
■
The Fund's principal risk disclosure was revised to include Sector Exposure Risk as a principal risk of the Fund due to changes in the Fund's
portfolio which may result in greater exposure to certain economic sectors.
For more complete information, you should review the Fund’s next prospectus, which we expect to be available by November 30, 2024
at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by request at (800) 225-1852.
You can find additional information at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by scanning the QR code below,
including the Fund’s prospectus, financial information, fund holdings, and proxy voting information. You can also request this information by
contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
To receive your fund documents online, go to
pgim.com/investments/resource/edelivery
and enroll.
PGIM Jennison Focused Value Fund
ANNUAL SHAREHOLDER REPORT – September 30, 2024
This annual shareholder report contains important information about the Class A shares of PGIM Jennison Focused Value Fund (the “Fund”) for
the period of October 1, 2023 to September 30, 2024.
You can find additional information about the Fund at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
. You can also request
this information by contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
PGIM Jennison Focused Value Fund—Class A | | |
WHAT AFFECTED THE FUND’S PERFORMANCE DURING THE REPORTING PERIOD?
■
Capital asset prices increased over the reporting period as investors reacted positively to the slowing pace of inflation and sustained economic
growth. The US Federal Reserve (Fed) moved to lower the federal funds rate by 50 basis points at its September meeting. (One basis point
equals 0.01%.) Markets reacted positively to the move, as well as the tone of the accompanying statement by the Fed, which expressed
confidence that favorable economic trends would likely permit further policy easing in the future.
■
Positions within the information technology (driven by semiconductors and software), consumer staples (led by consumer staples distribution &
retail), communication services (boosted by interactive media & services), and health care (led by pharmaceuticals and biotechnology) added
the most to the Fund’s strong positive performance relative to the Russell 1000 Value Index during the reporting period.
■
Conversely, positions within consumer discretionary (driven by hotels, restaurants & leisure), real estate (led by health care real estate
investment trusts (REITs)), and energy (led by oil & gas exploration) detracted the most from relative results in the Fund’s performance during
the reporting period.
HOW HAS THE FUND PERFORMED OVER THE PAST 10 YEARS?
The Fund’s past performance is not a good predictor of the Fund’s future performance.
The returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or call (800) 225-1852 or (973) 367-3529 from outside the US for more recent performance data.
The line graph reflects a hypothetical $10,000 investment in Class A shares and assumes that all recurring fees (including management fees)
were deducted and dividend and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would
have been lower.
Cumulative Performance: September 30, 2014 to September 30, 2024 Initial Investment of $10,000 |
The line graph reflects the return on the Fund's Class A shares with sales charges.
Average Annual Total Returns as of 9/30/2024 |
| | | |
Class A with sales charges | | | |
Class A without sales charges | | | |
Broad-Based Securities Market Index: S&P 500 Index* | | | |
| | | |
*The Fund has added this broad-based index in response to the new regulatory requirements.
WHAT ARE SOME KEY FUND STATISTICS AS OF 9/30/2024?
| |
| |
Total advisory fees paid for the year | |
Portfolio turnover rate for the year | |
WHAT ARE SOME CHARACTERISTICS OF THE FUND’S HOLDINGS AS OF 9/30/2024?
| |
| |
Oil, Gas & Consumable Fuels | |
| |
| |
Consumer Staples Distribution & Retail | |
| |
| |
Semiconductors & Semiconductor Equipment | |
| |
| |
| |
Health Care Providers & Services | |
| |
| |
| |
| |
Affiliated Mutual Fund - Short-Term Investment | |
| |
Interactive Media & Services | |
| |
| |
| |
Technology Hardware, Storage & Peripherals | |
| |
| |
Liabilities in excess of other assets | |
| |
WERE THERE ANY CHANGES TO THE FUND THIS YEAR?
The following is a summary of certain changes to the Fund since
October 1, 2023
:
■
The Fund's principal risk disclosure was revised to include Sector Exposure Risk as a principal risk of the Fund due to changes in the Fund's
portfolio which may result in greater exposure to certain economic sectors.
For more complete information, you should review the Fund’s next prospectus, which we expect to be available by November 30, 2024
at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by request at
(800) 225-1852
.
You can find additional information at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by scanning the QR code below,
including the Fund’s prospectus, financial information, fund holdings, and proxy voting information. You can also request this information by
contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
To receive your fund documents online, go to
pgim.com/investments/resource/edelivery
and enroll.
PGIM Jennison Focused Value Fund
PGIM Jennison Focused Value Fund
ANNUAL SHAREHOLDER REPORT – September 30, 2024
This annual shareholder report contains important information about the Class C shares of PGIM Jennison Focused Value Fund (the “Fund”) for
the period of October 1, 2023 to September 30, 2024.
You can find additional information about the Fund at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
. You can also request
this information by contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
PGIM Jennison Focused Value Fund—Class C | | |
WHAT AFFECTED THE FUND’S PERFORMANCE DURING THE REPORTING PERIOD?
■
Capital asset prices increased over the reporting period as investors reacted positively to the slowing pace of inflation and sustained economic
growth. The US Federal Reserve (Fed) moved to lower the federal funds rate by 50 basis points at its September meeting. (One basis point
equals 0.01%.) Markets reacted positively to the move, as well as the tone of the accompanying statement by the Fed, which expressed
confidence that favorable economic trends would likely permit further policy easing in the future.
■
Positions within the information technology (driven by semiconductors and software), consumer staples (led by consumer staples distribution &
retail), communication services (boosted by interactive media & services), and health care (led by pharmaceuticals and biotechnology) added
the most to the Fund’s strong positive performance relative to the Russell 1000 Value Index during the reporting period.
■
Conversely, positions within consumer discretionary (driven by hotels, restaurants & leisure), real estate (led by health care real estate
investment trusts (REITs)), and energy (led by oil & gas exploration) detracted the most from relative results in the Fund’s performance during
the reporting period.
HOW HAS THE FUND PERFORMED OVER THE PAST 10 YEARS?
The Fund’s past performance is not a good predictor of the Fund’s future performance.
The returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or call (800) 225-1852 or (973) 367-3529 from outside the US for more recent performance data.
The line graph reflects a hypothetical $10,000 investment in Class C shares and assumes that all recurring fees (including management fees)
were deducted and dividend and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would
have been lower.
Cumulative Performance: September 30, 2014 to September 30, 2024 Initial Investment of $10,000 |
Average Annual Total Returns as of 9/30/2024 |
| | | |
Class C with sales charges | | | |
Class C without sales charges | | | |
Broad-Based Securities Market Index: S&P 500 Index* | | | |
| | | |
*The Fund has added this broad-based index in response to the new regulatory requirements.
WHAT ARE SOME KEY FUND STATISTICS AS OF 9/30/2024?
| |
| |
Total advisory fees paid for the year | |
Portfolio turnover rate for the year | |
WHAT ARE SOME CHARACTERISTICS OF THE FUND’S HOLDINGS AS OF 9/30/2024?
| |
| |
Oil, Gas & Consumable Fuels | |
| |
| |
Consumer Staples Distribution & Retail | |
| |
| |
Semiconductors & Semiconductor Equipment | |
| |
| |
| |
Health Care Providers & Services | |
| |
| |
| |
| |
Affiliated Mutual Fund - Short-Term Investment | |
| |
Interactive Media & Services | |
| |
| |
| |
Technology Hardware, Storage & Peripherals | |
| |
| |
Liabilities in excess of other assets | |
| |
WERE THERE ANY CHANGES TO THE FUND THIS YEAR?
The following is a summary of certain changes to the Fund since
October 1, 2023
:
■
The Fund's principal risk disclosure was revised to include Sector Exposure Risk as a principal risk of the Fund due to changes in the Fund's
portfolio which may result in greater exposure to certain economic sectors.
For more complete information, you should review the Fund’s next prospectus, which we expect to be available by November 30, 2024
at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by request at
(800) 225-1852
.
You can find additional information at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by scanning the QR code below,
including the Fund’s prospectus, financial information, fund holdings, and proxy voting information. You can also request this information by
contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
To receive your fund documents online, go to
pgim.com/investments/resource/edelivery
and enroll.
PGIM Jennison Focused Value Fund
PGIM Jennison Focused Value Fund
ANNUAL SHAREHOLDER REPORT – September 30, 2024
This annual shareholder report contains important information about the Class R shares of PGIM Jennison Focused Value Fund (the “Fund”) for
the period of October 1, 2023 to September 30, 2024.
You can find additional information about the Fund at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
. You can also request
this information by contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
PGIM Jennison Focused Value Fund—Class R | | |
WHAT AFFECTED THE FUND’S PERFORMANCE DURING THE REPORTING PERIOD?
■
Capital asset prices increased over the reporting period as investors reacted positively to the slowing pace of inflation and sustained economic
growth. The US Federal Reserve (Fed) moved to lower the federal funds rate by 50 basis points at its September meeting. (One basis point
equals 0.01%.) Markets reacted positively to the move, as well as the tone of the accompanying statement by the Fed, which expressed
confidence that favorable economic trends would likely permit further policy easing in the future.
■
Positions within the information technology (driven by semiconductors and software), consumer staples (led by consumer staples distribution &
retail), communication services (boosted by interactive media & services), and health care (led by pharmaceuticals and biotechnology) added
the most to the Fund’s strong positive performance relative to the Russell 1000 Value Index during the reporting period.
■
Conversely, positions within consumer discretionary (driven by hotels, restaurants & leisure), real estate (led by health care real estate
investment trusts (REITs)), and energy (led by oil & gas exploration) detracted the most from relative results in the Fund’s performance during
the reporting period.
HOW HAS THE FUND PERFORMED OVER THE PAST 10 YEARS?
The Fund’s past performance is not a good predictor of the Fund’s future performance.
The returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or call (800) 225-1852 or (973) 367-3529 from outside the US for more recent performance data.
The line graph reflects a hypothetical $10,000 investment in Class R shares and assumes that all recurring fees (including management fees)
were deducted and dividend and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would
have been lower.
Cumulative Performance: September 30, 2014 to September 30, 2024 Initial Investment of $10,000 |
Average Annual Total Returns as of 9/30/2024 |
| | | |
| | | |
Broad-Based Securities Market Index: S&P 500 Index* | | | |
| | | |
*The Fund has added this broad-based index in response to the new regulatory requirements.
WHAT ARE SOME KEY FUND STATISTICS AS OF 9/30/2024?
| |
| |
Total advisory fees paid for the year | |
Portfolio turnover rate for the year | |
WHAT ARE SOME CHARACTERISTICS OF THE FUND’S HOLDINGS AS OF 9/30/2024?
| |
| |
Oil, Gas & Consumable Fuels | |
| |
| |
Consumer Staples Distribution & Retail | |
| |
| |
Semiconductors & Semiconductor Equipment | |
| |
| |
| |
Health Care Providers & Services | |
| |
| |
| |
| |
Affiliated Mutual Fund - Short-Term Investment | |
| |
Interactive Media & Services | |
| |
| |
| |
Technology Hardware, Storage & Peripherals | |
| |
| |
Liabilities in excess of other assets | |
| |
WERE THERE ANY CHANGES TO THE FUND THIS YEAR?
The following is a summary of certain changes to the Fund since October 1, 2023:
■
The Fund's principal risk disclosure was revised to include Sector Exposure Risk as a principal risk of the Fund due to changes in the Fund's
portfolio which may result in greater exposure to certain economic sectors.
For more complete information, you should review the Fund’s next prospectus, which we expect to be available by November 30, 2024
at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by request at (800) 225-1852.
You can find additional information at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by scanning the QR code below,
including the Fund’s prospectus, financial information, fund holdings, and proxy voting information. You can also request this information by
contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
To receive your fund documents online, go to
pgim.com/investments/resource/edelivery
and enroll.
PGIM Jennison Focused Value Fund
PGIM Jennison Focused Value Fund
ANNUAL SHAREHOLDER REPORT – September 30, 2024
This annual shareholder report contains important information about the Class Z shares of PGIM Jennison Focused Value Fund (the “Fund”) for
the period of October 1, 2023 to September 30, 2024.
You can find additional information about the Fund at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
. You can also request
this information by contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
PGIM Jennison Focused Value Fund—Class Z | | |
WHAT AFFECTED THE FUND’S PERFORMANCE DURING THE REPORTING PERIOD?
■
Capital asset prices increased over the reporting period as investors reacted positively to the slowing pace of inflation and sustained economic
growth. The US Federal Reserve (Fed) moved to lower the federal funds rate by 50 basis points at its September meeting. (One basis point
equals 0.01%.) Markets reacted positively to the move, as well as the tone of the accompanying statement by the Fed, which expressed
confidence that favorable economic trends would likely permit further policy easing in the future.
■
Positions within the information technology (driven by semiconductors and software), consumer staples (led by consumer staples distribution &
retail), communication services (boosted by interactive media & services), and health care (led by pharmaceuticals and biotechnology) added
the most to the Fund’s strong positive performance relative to the Russell 1000 Value Index during the reporting period.
■
Conversely, positions within consumer discretionary (driven by hotels, restaurants & leisure), real estate (led by health care real estate
investment trusts (REITs)), and energy (led by oil & gas exploration) detracted the most from relative results in the Fund’s performance during
the reporting period.
HOW HAS THE FUND PERFORMED OVER THE PAST 10 YEARS?
The Fund’s past performance is not a good predictor of the Fund’s future performance.
The returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or call (800) 225-1852 or (973) 367-3529 from outside the US for more recent performance data.
The line graph reflects a hypothetical $10,000 investment in Class Z shares and assumes that all recurring fees (including management fees)
were deducted and dividend and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would
have been lower.
Cumulative Performance: September 30, 2014 to September 30, 2024 Initial Investment of $10,000 |
Average Annual Total Returns as of 9/30/2024 |
| | | |
| | | |
Broad-Based Securities Market Index: S&P 500 Index* | | | |
| | | |
*The Fund has added this broad-based index in response to the new regulatory requirements.
WHAT ARE SOME KEY FUND STATISTICS AS OF 9/30/2024?
| |
| |
Total advisory fees paid for the year | |
Portfolio turnover rate for the year | |
WHAT ARE SOME CHARACTERISTICS OF THE FUND’S HOLDINGS AS OF 9/30/2024?
| |
| |
Oil, Gas & Consumable Fuels | |
| |
| |
Consumer Staples Distribution & Retail | |
| |
| |
Semiconductors & Semiconductor Equipment | |
| |
| |
| |
Health Care Providers & Services | |
| |
| |
| |
| |
Affiliated Mutual Fund - Short-Term Investment | |
| |
Interactive Media & Services | |
| |
| |
| |
Technology Hardware, Storage & Peripherals | |
| |
| |
Liabilities in excess of other assets | |
| |
WERE THERE ANY CHANGES TO THE FUND THIS YEAR?
The following is a summary of certain changes to the Fund since
October 1, 2023
:
■
The Fund's principal risk disclosure was revised to include Sector Exposure Risk as a principal risk of the Fund due to changes in the Fund's
portfolio which may result in greater exposure to certain economic sectors.
For more complete information, you should review the Fund’s next prospectus, which we expect to be available by November 30, 2024
at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by request at
(800) 225-1852
.
You can find additional information at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by scanning the QR code below,
including the Fund’s prospectus, financial information, fund holdings, and proxy voting information. You can also request this information by
contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
To receive your fund documents online, go to
pgim.com/investments/resource/edelivery
and enroll.
PGIM Jennison Focused Value Fund
PGIM Jennison Focused Value Fund
ANNUAL SHAREHOLDER REPORT – September 30, 2024
This annual shareholder report contains important information about the Class R6 shares of PGIM Jennison Focused Value Fund (the “Fund”) for
the period of October 1, 2023 to September 30, 2024.
You can find additional information about the Fund at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
. You can also request
this information by contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
PGIM Jennison Focused Value Fund—Class R6 | | |
WHAT AFFECTED THE FUND’S PERFORMANCE DURING THE REPORTING PERIOD?
■
Capital asset prices increased over the reporting period as investors reacted positively to the slowing pace of inflation and sustained economic
growth. The US Federal Reserve (Fed) moved to lower the federal funds rate by 50 basis points at its September meeting. (One basis point
equals 0.01%.) Markets reacted positively to the move, as well as the tone of the accompanying statement by the Fed, which expressed
confidence that favorable economic trends would likely permit further policy easing in the future.
■
Positions within the information technology (driven by semiconductors and software), consumer staples (led by consumer staples distribution &
retail), communication services (boosted by interactive media & services), and health care (led by pharmaceuticals and biotechnology) added
the most to the Fund’s strong positive performance relative to the Russell 1000 Value Index during the reporting period.
■
Conversely, positions within consumer discretionary (driven by hotels, restaurants & leisure), real estate (led by health care real estate
investment trusts (REITs)), and energy (led by oil & gas exploration) detracted the most from relative results in the Fund’s performance during
the reporting period.
HOW HAS THE FUND PERFORMED OVER THE PAST 10 YEARS?
The Fund’s past performance is not a good predictor of the Fund’s future performance.
The returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or call (800) 225-1852 or (973) 367-3529 from outside the US for more recent performance data.
The line graph reflects a hypothetical $10,000 investment in Class R6 shares and assumes that all recurring fees (including management fees)
were deducted and dividend and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would
have been lower.
Cumulative Performance: November 25, 2014 to September 30, 2024 Initial Investment of $10,000 |
Average Annual Total Returns as of 9/30/2024 |
| | | |
| | | |
Broad-Based Securities Market Index: S&P 500 Index* | | | |
| | | |
*The Fund has added this broad-based index in response to new regulatory requirements.
Since Inception returns are provided for the share class since it has less than 10 fiscal years of returns. Since Inception returns for the Index are measured from the closest
month-end to the class’s inception date.
WHAT ARE SOME KEY FUND STATISTICS AS OF 9/30/2024?
| |
| |
Total advisory fees paid for the year | |
Portfolio turnover rate for the year | |
WHAT ARE SOME CHARACTERISTICS OF THE FUND’S HOLDINGS AS OF 9/30/2024?
| |
| |
Oil, Gas & Consumable Fuels | |
| |
| |
Consumer Staples Distribution & Retail | |
| |
| |
Semiconductors & Semiconductor Equipment | |
| |
| |
| |
Health Care Providers & Services | |
| |
| |
| |
| |
Affiliated Mutual Fund - Short-Term Investment | |
| |
Interactive Media & Services | |
| |
| |
| |
Technology Hardware, Storage & Peripherals | |
| |
| |
Liabilities in excess of other assets | |
| |
WERE THERE ANY CHANGES TO THE FUND THIS YEAR?
The following is a summary of certain changes to the Fund since October 1, 2023:
■
The Fund's principal risk disclosure was revised to include Sector Exposure Risk as a principal risk of the Fund due to changes in the Fund's
portfolio which may result in greater exposure to certain economic sectors.
For more complete information, you should review the Fund’s next prospectus, which we expect to be available by November 30, 2024
at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by request at (800) 225-1852.
You can find additional information at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by scanning the QR code below,
including the Fund’s prospectus, financial information, fund holdings, and proxy voting information. You can also request this information by
contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
To receive your fund documents online, go to
pgim.com/investments/resource/edelivery
and enroll.
PGIM Jennison Focused Value Fund
PGIM Jennison Growth Fund
ANNUAL SHAREHOLDER REPORT – September 30, 2024
This annual shareholder report contains important information about the Class A shares of PGIM Jennison Growth Fund (the “Fund”) for the
period of October 1, 2023 to September 30, 2024.
You can find additional information about the Fund at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
. You can also request
this information by contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
PGIM Jennison Growth Fund—Class A | | |
WHAT AFFECTED THE FUND’S PERFORMANCE DURING THE REPORTING PERIOD?
■
Capital asset prices increased over the reporting period as investors reacted positively to the slowing pace of inflation and sustained economic
growth. The US Federal Reserve (Fed) moved to lower the federal funds rate by 50 basis points at its September meeting. (One basis point
equals 0.01%.) Markets reacted positively to the move, as well as the tone of the accompanying statement by the Fed, which expressed
confidence that favorable economic trends would likely permit further policy easing in the future.
■
Positions within information technology (especially semiconductors & semiconductor equipment), health care (led by health care equipment &
supplies), and communication services (driven by interactive media & services) added the most to the Fund’s strong absolute performance and
its positive performance relative to the Russell 1000 Growth Index during the reporting period.
■
Conversely, stock selection within consumer discretionary (led by apparel & luxury goods) and an overweight position to that sector detracted
the most from relative results.
HOW HAS THE FUND PERFORMED OVER THE PAST 10 YEARS?
The Fund’s past performance is not a good predictor of the Fund’s future performance.
The returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or call (800) 225-1852 or (973) 367-3529 from outside the US for more recent performance data.
The line graph reflects a hypothetical $10,000 investment in Class A shares and assumes that all recurring fees (including management fees)
were deducted and dividend and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would
have been lower.
Cumulative Performance: September 30, 2014 to September 30, 2024 Initial Investment of $10,000 |
The line graph reflects the return on the Fund's Class A shares with sales charges.
Average Annual Total Returns as of 9/30/2024 |
| | | |
Class A with sales charges | | | |
Class A without sales charges | | | |
Broad-Based Securities Market Index: S&P 500 Index | | | |
Russell 1000 Growth Index | | | |
WHAT ARE SOME KEY FUND STATISTICS AS OF 9/30/2024?
| |
| |
Total advisory fees paid for the year | |
Portfolio turnover rate for the year | |
WHAT ARE SOME CHARACTERISTICS OF THE FUND’S HOLDINGS AS OF 9/30/2024?
| |
Semiconductors & Semiconductor Equipment | |
| |
Interactive Media & Services | |
| |
| |
Technology Hardware, Storage & Peripherals | |
| |
| |
Consumer Staples Distribution & Retail | |
| |
| |
Hotels, Restaurants & Leisure | |
| |
| |
| |
| |
Health Care Equipment & Supplies | |
| |
| |
| |
| |
| |
Textiles, Apparel & Luxury Goods | |
Affiliated Mutual Fund - Short-Term Investment | |
| |
| |
Liabilities in excess of other assets | |
| |
* Consists of Industries that each make up less than 0.5% of the Fund's net assets
WERE THERE ANY CHANGES TO THE FUND THIS YEAR?
The following is a summary of certain changes to the Fund since October 1, 2023:
■
The Fund's principal risk disclosure was revised to include Sector Exposure Risk as a principal risk of the Fund due to changes in the Fund's
portfolio which may result in greater exposure to certain economic sectors.
For more complete information, you should review the Fund’s next prospectus, which we expect to be available by November 30, 2024
at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by request at (800) 225-1852.
You can find additional information at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by scanning the QR code below,
including the Fund’s prospectus, financial information, fund holdings, and proxy voting information. You can also request this information by
contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
To receive your fund documents online, go to
pgim.com/investments/resource/edelivery
and enroll.
PGIM Jennison Growth Fund
PGIM Jennison Growth Fund
ANNUAL SHAREHOLDER REPORT – September 30, 2024
This annual shareholder report contains important information about the Class C shares of PGIM Jennison Growth Fund (the “Fund”) for the
period of October 1, 2023 to September 30, 2024.
You can find additional information about the Fund at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
. You can also request
this information by contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
PGIM Jennison Growth Fund—Class C | | |
WHAT AFFECTED THE FUND’S PERFORMANCE DURING THE REPORTING PERIOD?
■
Capital asset prices increased over the reporting period as investors reacted positively to the slowing pace of inflation and sustained economic
growth. The US Federal Reserve (Fed) moved to lower the federal funds rate by 50 basis points at its September meeting. (One basis point
equals 0.01%.) Markets reacted positively to the move, as well as the tone of the accompanying statement by the Fed, which expressed
confidence that favorable economic trends would likely permit further policy easing in the future.
■
Positions within information technology (especially semiconductors & semiconductor equipment), health care (led by health care equipment &
supplies), and communication services (driven by interactive media & services) added the most to the Fund’s strong absolute performance and
its positive performance relative to the Russell 1000 Growth Index during the reporting period.
■
Conversely, stock selection within consumer discretionary (led by apparel & luxury goods) and an overweight position to that sector detracted
the most from relative results.
HOW HAS THE FUND PERFORMED OVER THE PAST 10 YEARS?
The Fund’s past performance is not a good predictor of the Fund’s future performance.
The returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or call (800) 225-1852 or (973) 367-3529 from outside the US for more recent performance data.
The line graph reflects a hypothetical $10,000 investment in Class C shares and assumes that all recurring fees (including management fees)
were deducted and dividend and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would
have been lower.
Cumulative Performance: September 30, 2014 to September 30, 2024 Initial Investment of $10,000 |
Average Annual Total Returns as of 9/30/2024 |
| | | |
Class C with sales charges | | | |
Class C without sales charges | | | |
Broad-Based Securities Market Index: S&P 500 Index | | | |
Russell 1000 Growth Index | | | |
WHAT ARE SOME KEY FUND STATISTICS AS OF 9/30/2024?
| |
| |
Total advisory fees paid for the year | |
Portfolio turnover rate for the year | |
WHAT ARE SOME CHARACTERISTICS OF THE FUND’S HOLDINGS AS OF 9/30/2024?
| |
Semiconductors & Semiconductor Equipment | |
| |
Interactive Media & Services | |
| |
| |
Technology Hardware, Storage & Peripherals | |
| |
| |
Consumer Staples Distribution & Retail | |
| |
| |
Hotels, Restaurants & Leisure | |
| |
| |
| |
| |
Health Care Equipment & Supplies | |
| |
| |
| |
| |
| |
Textiles, Apparel & Luxury Goods | |
Affiliated Mutual Fund - Short-Term Investment | |
| |
| |
Liabilities in excess of other assets | |
| |
* Consists of Industries that each make up less than 0.5% of the Fund's net assets
WERE THERE ANY CHANGES TO THE FUND THIS YEAR?
The following is a summary of certain changes to the Fund since October 1, 2023:
■
The Fund's principal risk disclosure was revised to include Sector Exposure Risk as a principal risk of the Fund due to changes in the Fund's
portfolio which may result in greater exposure to certain economic sectors.
For more complete information, you should review the Fund’s next prospectus, which we expect to be available by November 30, 2024
at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by request at (800) 225-1852.
You can find additional information at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by scanning the QR code below,
including the Fund’s prospectus, financial information, fund holdings, and proxy voting information. You can also request this information by
contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
To receive your fund documents online, go to
pgim.com/investments/resource/edelivery
and enroll.
PGIM Jennison Growth Fund
PGIM Jennison Growth Fund
ANNUAL SHAREHOLDER REPORT – September 30, 2024
This annual shareholder report contains important information about the Class R shares of PGIM Jennison Growth Fund (the “Fund”) for the
period of October 1, 2023 to September 30, 2024.
You can find additional information about the Fund at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
. You can also request
this information by contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
PGIM Jennison Growth Fund—Class R | | |
WHAT AFFECTED THE FUND’S PERFORMANCE DURING THE REPORTING PERIOD?
■
Capital asset prices increased over the reporting period as investors reacted positively to the slowing pace of inflation and sustained economic
growth. The US Federal Reserve (Fed) moved to lower the federal funds rate by 50 basis points at its September meeting. (One basis point
equals 0.01%.) Markets reacted positively to the move, as well as the tone of the accompanying statement by the Fed, which expressed
confidence that favorable economic trends would likely permit further policy easing in the future.
■
Positions within information technology (especially semiconductors & semiconductor equipment), health care (led by health care equipment &
supplies), and communication services (driven by interactive media & services) added the most to the Fund’s strong absolute performance and
its positive performance relative to the Russell 1000 Growth Index during the reporting period.
■
Conversely, stock selection within consumer discretionary (led by apparel & luxury goods) and an overweight position to that sector detracted
the most from relative results.
HOW HAS THE FUND PERFORMED OVER THE PAST 10 YEARS?
The Fund’s past performance is not a good predictor of the Fund’s future performance.
The returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or call
(800) 225-1852 or (973)
367-3529 from outside the US for more recent performance data.
The line graph reflects a hypothetical $10,000 investment in Class R shares and assumes that all recurring fees (including management fees)
were deducted and dividend and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would
have been lower.
Cumulative Performance: September 30, 2014 to September 30, 2024 Initial Investment of $10,000 |
Average Annual Total Returns as of 9/30/2024 |
| | | |
| | | |
Broad-Based Securities Market Index: S&P 500 Index | | | |
Russell 1000 Growth Index | | | |
WHAT ARE SOME KEY FUND STATISTICS AS OF 9/30/2024?
| |
| |
Total advisory fees paid for the year | |
Portfolio turnover rate for the year | |
WHAT ARE SOME CHARACTERISTICS OF THE FUND’S HOLDINGS AS OF 9/30/2024?
| |
Semiconductors & Semiconductor Equipment | |
| |
Interactive Media & Services | |
| |
| |
Technology Hardware, Storage & Peripherals | |
| |
| |
Consumer Staples Distribution & Retail | |
| |
| |
Hotels, Restaurants & Leisure | |
| |
| |
| |
| |
Health Care Equipment & Supplies | |
| |
| |
| |
| |
| |
Textiles, Apparel & Luxury Goods | |
Affiliated Mutual Fund - Short-Term Investment | |
| |
| |
Liabilities in excess of other assets | |
| |
* Consists of Industries that each make up less than 0.5% of the Fund's net assets
WERE THERE ANY CHANGES TO THE FUND THIS YEAR?
The following is a summary of certain changes to the Fund since October 1, 2023:
■
The Fund's principal risk disclosure was revised to include Sector Exposure Risk as a principal risk of the Fund due to changes in the Fund's
portfolio which may result in greater exposure to certain economic sectors.
For more complete information, you should review the Fund’s next prospectus, which we expect to be available by November 30, 2024
at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by request at (800) 225-1852.
You can find additional information at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by scanning the QR code below,
including the Fund’s prospectus, financial information, fund holdings, and proxy voting information. You can also request this information by
contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
To receive your fund documents online, go to
pgim.com/investments/resource/edelivery
and enroll.
PGIM Jennison Growth Fund
PGIM Jennison Growth Fund
ANNUAL SHAREHOLDER REPORT – September 30, 2024
This annual shareholder report contains important information about the Class Z shares of PGIM Jennison Growth Fund (the “Fund”) for the
period of October 1, 2023 to September 30, 2024.
You can find additional information about the Fund at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
. You can also request
this information by contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
PGIM Jennison Growth Fund—Class Z | | |
WHAT AFFECTED THE FUND’S PERFORMANCE DURING THE REPORTING PERIOD?
■
Capital asset prices increased over the reporting period as investors reacted positively to the slowing pace of inflation and sustained economic
growth. The US Federal Reserve (Fed) moved to lower the federal funds rate by 50 basis points at its September meeting. (One basis point
equals 0.01%.) Markets reacted positively to the move, as well as the tone of the accompanying statement by the Fed, which expressed
confidence that favorable economic trends would likely permit further policy easing in the future.
■
Positions within information technology (especially semiconductors & semiconductor equipment), health care (led by health care equipment &
supplies), and communication services (driven by interactive media & services) added the most to the Fund’s strong absolute performance and
its positive performance relative to the Russell 1000 Growth Index during the reporting period.
■
Conversely, stock selection within consumer discretionary (led by apparel & luxury goods) and an overweight position to that sector detracted
the most from relative results.
HOW HAS THE FUND PERFORMED OVER THE PAST 10 YEARS?
The Fund’s past performance is not a good predictor of the Fund’s future performance.
The returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or call (800) 225-1852 or (973) 367-3529 from outside the US for more recent performance data.
The line graph reflects a hypothetical $10,000 investment in Class Z shares and assumes that all recurring fees (including management fees)
were deducted and dividend and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would
have been lower.
Cumulative Performance: September 30, 2014 to September 30, 2024 Initial Investment of $10,000 |
Average Annual Total Returns as of 9/30/2024 |
| | | |
| | | |
Broad-Based Securities Market Index: S&P 500 Index | | | |
Russell 1000 Growth Index | | | |
WHAT ARE SOME KEY FUND STATISTICS AS OF 9/30/2024?
| |
| |
Total advisory fees paid for the year | |
Portfolio turnover rate for the year | |
WHAT ARE SOME CHARA
CT
ERISTICS OF THE FUND’S HOLDINGS AS OF 9/30/2024?
| |
Semiconductors & Semiconductor Equipment | |
| |
Interactive Media & Services | |
| |
| |
Technology Hardware, Storage & Peripherals | |
| |
| |
Consumer Staples Distribution & Retail | |
| |
| |
Hotels, Restaurants & Leisure | |
| |
| |
| |
| |
Health Care Equipment & Supplies | |
| |
| |
| |
| |
| |
Textiles, Apparel & Luxury Goods | |
Affiliated Mutual Fund - Short-Term Investment | |
| |
| |
Liabilities in excess of other assets | |
| |
* Consists of Industries that each make up less than 0.5% of the Fund's net assets
WERE THERE ANY CHANGES TO THE FUND THIS YEAR?
The following is a summary of certain changes to the Fund since October 1, 2023:
■
The Fund's principal risk disclosure was revised to include Sector Exposure Risk as a principal risk of the Fund due to changes in the Fund's
portfolio which may result in greater exposure to certain economic sectors.
For more complete information, you should review the Fund’s next prospectus, which we expect to be available by November 30, 2024
at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by request at (800) 225-1852.
You can find additional information at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by scanning the QR code below,
including the Fund’s prospectus, financial information, fund holdings, and proxy voting information. You can also request this information by
contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
To receive your fund documents online, go to
pgim.com/investments/resource/edelivery
and enroll.
PGIM Jennison Growth Fund
PGIM Jennison Growth Fund
ANNUAL SHAREHOLDER REPORT – September 30, 2024
This annual shareholder report contains important information about the Class R2 shares of PGIM Jennison Growth Fund (the “Fund”) for the
period of October 1, 2023 to September 30, 2024.
You can find additional information about the Fund at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
. You can also request
this information by contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
PGIM Jennison Growth Fund—Class R2 | | |
WHAT AFFECTED THE FUND’S PERFORMANCE DURING THE REPORTING PERIOD?
■
Capital asset prices increased over the reporting period as investors reacted positively to the slowing pace of inflation and sustained economic
growth. The US Federal Reserve (Fed) moved to lower the federal funds rate by 50 basis points at its September meeting. (One basis point
equals 0.01%.) Markets reacted positively to the move, as well as the tone of the accompanying statement by the Fed, which expressed
confidence that favorable economic trends would likely permit further policy easing in the future.
■
Positions within information technology (especially semiconductors & semiconductor equipment), health care (led by health care equipment &
supplies), and communication services (driven by interactive media & services) added the most to the Fund’s strong absolute performance and
its positive performance relative to the Russell 1000 Growth Index during the reporting period.
■
Conversely, stock selection within consumer discretionary (led by apparel & luxury goods) and an overweight position to that sector detracted
the most from relative results.
HOW HAS THE FUND PERFORMED OVER THE PAST 10 YEARS?
The Fund’s past performance is not a good predictor of the Fund’s future performance.
The returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or call (800) 225-1852 or (973) 367-3529 from outside the US for more recent performance data.
The line graph reflects a hypothetical $10,000 investment in Class R2 shares and assumes that all recurring fees (including management fees)
were deducted and dividend and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would
have been lower.
Cumulative Performance: November 28, 2017 to September 30, 2024 Initial Investment of $10,000 |
Average Annual Total Returns as of 9/30/2024 |
| | | |
| | | |
Broad-Based Securities Market Index: S&P 500 Index | | | |
Russell 1000 Growth Index | | | |
Since Inception returns are provided for the share class since it has less than 10 fiscal years of returns. Since Inception returns for the Index are measured from the closest
month-end to the class’s inception date.
WHAT ARE SOME KEY FUND STATISTICS AS OF 9/30/2024?
| |
| |
Total advisory fees paid for the year | |
Portfolio turnover rate for the year | |
WHAT ARE SOME CHA
RAC
TERISTICS OF THE FUND’S HOLDINGS AS OF 9/30/2024?
| |
Semiconductors & Semiconductor Equipment | |
| |
Interactive Media & Services | |
| |
| |
Technology Hardware, Storage & Peripherals | |
| |
| |
Consumer Staples Distribution & Retail | |
| |
| |
Hotels, Restaurants & Leisure | |
| |
| |
| |
| |
Health Care Equipment & Supplies | |
| |
| |
| |
| |
| |
Textiles, Apparel & Luxury Goods | |
Affiliated Mutual Fund - Short-Term Investment | |
| |
| |
Liabilities in excess of other assets | |
| |
* Consists of Industries that each make up less than 0.5% of the Fund's net assets
WERE THERE ANY CHANGES TO THE FUND THIS YEAR?
The following is a summary of certain changes to the Fund since October 1, 2023:
■
The Fund's principal risk disclosure was revised to include Sector Exposure Risk as a principal risk of the Fund due to changes in the Fund's
portfolio which may result in greater exposure to certain economic sectors.
For more complete information, you should review the Fund’s next prospectus, which we expect to be available by November 30, 2024
at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by request at (800) 225-1852.
You can find additional information at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by scanning the QR code below,
including the Fund’s prospectus, financial information, fund holdings, and proxy voting information. You can also request this information by
contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
To receive your fund documents online, go to
pgim.com/investments/resource/edelivery
and enroll.
PGIM Jennison Growth Fund
PGIM Jennison Growth Fund
ANNUAL SHAREHOLDER REPORT – September 30, 2024
This annual shareholder report contains important information about the Class R4 shares of PGIM Jennison Growth Fund (the “Fund”) for the
period of October 1, 2023 to September 30, 2024.
You can find additional information about the Fund at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
. You can also request
this information by contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
PGIM Jennison Growth Fund—Class R4 | | |
WHAT AFFECTED THE FUND’S PERFORMANCE DURING THE REPORTING PERIOD?
■
Capital asset prices increased over the reporting period as investors reacted positively to the slowing pace of inflation and sustained economic
growth. The US Federal Reserve (Fed) moved to lower the federal funds rate by 50 basis points at its September meeting. (One basis point
equals 0.01%.) Markets reacted positively to the move, as well as the tone of the accompanying statement by the Fed, which expressed
confidence that favorable economic trends would likely permit further policy easing in the future.
■
Positions within information technology (especially semiconductors & semiconductor equipment), health care (led by health care equipment &
supplies), and communication services (driven by interactive media & services) added the most to the Fund’s strong absolute performance and
its positive performance relative to the Russell 1000 Growth Index during the reporting period.
■
Conversely, stock selection within consumer discretionary (led by apparel & luxury goods) and an overweight position to that sector detracted
the most from relative results.
HOW HAS THE FUND PERFORMED OVER THE PAST 10 YEARS?
The Fund’s past performance is not a good predictor of the Fund’s future performance.
The returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or call (800) 225-1852 or (973) 367-3529 from outside the US for more recent performance data.
The line graph reflects a hypothetical $10,000 investment in Class R4 shares and assumes that all recurring fees (including management fees)
were deducted and dividend and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would
have been lower.
Cumulative Performance: November 28, 2017 to September 30, 2024 Initial Investment of $10,000 |
Average Annual Total Returns as of 9/30/2024 |
| | | |
| | | |
Broad-Based Securities Market Index: S&P 500 Index | | | |
Russell 1000 Growth Index | | | |
Since Inception returns are provided for the share class since it has less than 10 fiscal years of returns. Since Inception returns for the Index are measured from the closest
month-end to the class’s inception date.
WHAT ARE SOME KEY FUND STATISTICS AS OF 9/30/2024?
| |
| |
Total advisory fees paid for the year | |
Portfolio turnover rate for the year | |
WHAT ARE S
OM
E CHARACTERISTICS OF THE FUND’S HOLDINGS AS OF 9/30/2024?
| |
Semiconductors & Semiconductor Equipment | |
| |
Interactive Media & Services | |
| |
| |
Technology Hardware, Storage & Peripherals | |
| |
| |
Consumer Staples Distribution & Retail | |
| |
| |
Hotels, Restaurants & Leisure | |
| |
| |
| |
| |
Health Care Equipment & Supplies | |
| |
| |
| |
| |
| |
Textiles, Apparel & Luxury Goods | |
Affiliated Mutual Fund - Short-Term Investment | |
| |
| |
Liabilities in excess of other assets | |
| |
* Consists of Industries that each make up less than 0.5% of the Fund's net assets
WERE THERE ANY CHANGES TO THE FUND THIS YEAR?
The following is a summary of certain changes to the Fund since October 1, 2023:
■
The Fund's principal risk disclosure was revised to include Sector Exposure Risk as a principal risk of the Fund due to changes in the Fund's
portfolio which may result in greater exposure to certain economic sectors.
For more complete information, you should review the Fund’s next prospectus, which we expect to be available by November 30, 2024
at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by request at (800) 225-1852.
You can find additional information at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by scanning the QR code below,
including the Fund’s prospectus, financial information, fund holdings, and proxy voting information. You can also request this information by
contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
To receive your fund documents online, go to
pgim.com/investments/resource/edelivery
and enroll.
PGIM Jennison Growth Fund
PGIM Jennison Growth Fund
ANNUAL SHAREHOLDER REPORT – September 30, 2024
This annual shareholder report contains important information about the Class R6 shares of PGIM Jennison Growth Fund (the “Fund”) for the
period of October 1, 2023 to September 30, 2024.
You can find additional information about the Fund at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
. You can also request
this information by contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
PGIM Jennison Growth Fund—Class R6 | | |
WHAT AFFECTED THE FUND’S PERFORMANCE DURING THE REPORTING PERIOD?
■
Capital asset prices increased over the reporting period as investors reacted positively to the slowing pace of inflation and sustained economic
growth. The US Federal Reserve (Fed) moved to lower the federal funds rate by 50 basis points at its September meeting. (One basis point
equals 0.01%.) Markets reacted positively to the move, as well as the tone of the accompanying statement by the Fed, which expressed
confidence that favorable economic trends would likely permit further policy easing in the future.
■
Positions within information technology (especially semiconductors & semiconductor equipment), health care (led by health care equipment &
supplies), and communication services (driven by interactive media & services) added the most to the Fund’s strong absolute performance and
its positive performance relative to the Russell 1000 Growth Index during the reporting period.
■
Conversely, stock selection within consumer discretionary (led by apparel & luxury goods) and an overweight position to that sector detracted
the most from relative results.
HOW HAS THE FUND PERFORMED OVER THE PAST 10 YEARS?
The Fund’s past performance is not a good predictor of the Fund’s future performance.
The returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or call (800) 225-1852 or (973) 367-3529 from outside the US for more recent performance data.
The line graph reflects a hypothetical $10,000 investment in Class R6 shares and assumes that all recurring fees (including management fees)
were deducted and dividend and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would
have been lower.
Cumulative Performance: September 27, 2017 to September 30, 2024 Initial Investment of $10,000 |
Average Annual Total Returns as of 9/30/2024 |
| | | |
| | | |
Broad-Based Securities Market Index: S&P 500 Index | | | |
Russell 1000 Growth Index | | | |
Since Inception returns are provided for the share class since it has less than 10 fiscal years of returns. Since Inception returns for the Index are measured from the closest
month-end to the class’s inception date.
WHAT ARE SOME KEY FUND STATISTICS AS OF 9/30/2024?
| |
| |
Total advisory fees paid for the year | |
Portfolio turnover rat e for the year | |
WHAT ARE SOME CHARACTERISTICS OF THE FUND’S HOLDINGS AS OF 9/30/2024?
| |
Semiconductors & Semiconductor Equipment | |
| |
Interactive Media & Services | |
| |
| |
Technology Hardware, Storage & Peripherals | |
| |
| |
Consumer Staples Distribution & Retail | |
| |
| |
Hotels, Restaurants & Leisure | |
| |
| |
| |
| |
Health Care Equipment & Supplies | |
| |
| |
| |
| |
| |
Textiles, Apparel & Luxury Goods | |
Affiliated Mutual Fund - Short-Term Investment | |
| |
| |
Liabilities in excess of other assets | |
| |
* Consists of Industries that each make up less than 0.5% of the Fund's net assets
WERE THERE ANY CHANGES TO THE FUND THIS YEAR?
The following is a summary of certain changes to the Fund since October 1, 2023:
■
The Fund's principal risk disclosure was revised to include Sector Exposure Risk as a principal risk of the Fund due to changes in the Fund's
portfolio which may result in greater exposure to certain economic sectors.
For more complete information, you should review the Fund’s next prospectus, which we expect to be available by November 30, 2024
at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by request at (800) 225-1852.
You can find additional information at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by scanning the QR code below,
including the Fund’s prospectus, financial information, fund holdings, and proxy voting information. You can also request this information by
contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
To receive your fund documents online, go to
pgim.com/investments/resource/edelivery
and enroll.
PGIM Jennison Growth Fund
| | (b) | Copy of each notice transmitted to stockholders in reliance on Rule 30e-3 under the Act (17 CFR 270.30e-3) that contains disclosures specified by paragraph (c)(3) of that rule – Not applicable. |
Item 2 – Code of Ethics – See Exhibit (a)
As of the end of the period covered by this report, the registrant has adopted a code of ethics (the “Section 406 Standards for Investment Companies – Ethical Standards for Principal Executive and Financial Officers”) that applies to the registrant’s Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer.
The registrant hereby undertakes to provide any person, without charge, upon request, a copy of the code of ethics. To request a copy of the code of ethics, contact the registrant 800-225-1852, and ask for a copy of the Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers.
Item 3 – Audit Committee Financial Expert –
The registrant’s Board has determined that Ms. Grace C. Torres, member of the Board’s Audit Committee is an “audit committee financial expert,” and that she is “independent,” for purposes of this item.
Item 4 – Principal Accountant Fees and Services –
For the fiscal years ended September 30, 2024 and September 30, 2023, PricewaterhouseCoopers LLP (“PwC”), the Registrant’s principal accountant, billed the Registrant $107,485 and $100,700, respectively, for professional services rendered for the audit of the Registrant’s annual financial statements or services that are normally provided in connection with statutory and regulatory filings.
For the fiscal years ended September 30, 2024 and September 30, 2023: none.
For the fiscal years ended September 30, 2024 and September 30, 2023: none.
For the fiscal years ended September 30, 2024 and September 30, 2023: none.
(e) (1) Audit Committee Pre-Approval Policies and Procedures
THE PGIM MUTUAL FUNDS
AUDIT COMMITTEE POLICY
on
Pre-Approval of Services Provided by the Independent
Accountants
The Audit Committee of each PGIM Mutual Fund is charged with the responsibility to monitor the independence of the Fund’s independent accountants. As part of this responsibility, the Audit Committee must pre-approve the independent accounting firm’s engagement to render audit and/or permissible non-audit services, as required by law. In evaluating a proposed engagement of the independent accountants, the Audit Committee will assess the effect that the engagement might reasonably be expected to have on the accountant’s independence. The Committee’s evaluation will be based on:
| | • | | a review of the nature of the professional services expected to be provided, |
| | • | | a review of the safeguards put into place by the accounting firm to safeguard independence, and |
| | • | | periodic meetings with the accounting firm. |
Policy for Audit and Non-Audit Services Provided to the Funds
On an annual basis, the scope of audits for each Fund, audit fees and expenses, and audit-related and non-audit services (and fees proposed in respect thereof) proposed to be performed by the Fund’s independent accountants will be presented by the Treasurer and the independent accountants to the Audit Committee for review and, as appropriate, approval prior to the initiation of such services.
Such presentation shall be accompanied by confirmation by both the Treasurer and the independent accountants that the proposed non-audit services will not adversely affect the independence of the independent accountants. Such proposed non-audit services shall be described in sufficient detail to enable the Audit Committee to assess the appropriateness of such services and fees, and the compatibility of the provision of such services with the auditor’s independence. The Committee shall receive periodic reports on the progress of the audit and other services which are approved by the Committee or by the Committee Chair pursuant to authority delegated in this Policy.
The categories of services enumerated under “Audit Services”, “Audit-related Services”, and “Tax Services” are intended to provide guidance to the Treasurer and the independent accountants as to those categories of services which the Committee believes are generally consistent with the independence of the independent accountants and which the Committee (or the Committee Chair) would expect upon the presentation of specific proposals to pre-approve. The enumerated categories are not intended as an exclusive list of audit, audit-related or tax services, which the Committee (or the Committee Chair) would consider for pre-approval.
Audit Services
The following categories of audit services are considered to be consistent with the role of the Fund’s independent accountants:
| | • | | Annual Fund financial statement audits |
| | • | | Seed audits (related to new product filings, as required) |
| | • | | SEC and regulatory filings and consents |
Audit-related Services
The following categories of audit-related services are considered to be consistent with the role of the Fund’s independent accountants:
| | • | | Accounting consultations |
| | • | | Fund merger support services |
| | • | | Agreed Upon Procedure Reports |
| | • | | Other Internal Control Reports |
Individual audit-related services that fall within one of these categories (except for fund merger support services) and are not presented to the Audit Committee as part of the annual pre-approval process are subject to an authorized pre-approval by the Audit Committee so long as the estimated fee for those services does not exceed $30,000. Any services provided under such pre-approval will be reported to the Audit Committee at its next regular meeting. Should the amount of such services exceed $30,000 any additional fees will be subject to pre-approval by the Committee Chair (or any other Committee member on whom this responsibility has been delegated). Fees related to fund merger support services are subject to a separate authorized pre-approval by the Audit Committee with fees determined on a per occurrence and merger complexity basis.
Tax Services
The following categories of tax services are considered to be consistent with the role of the Fund’s independent accountants:
| | • | | Tax compliance services related to the filing or amendment of the following: |
| | • | | Federal, state and local income tax compliance; and, |
| | • | | Sales and use tax compliance |
| | • | | Timely RIC qualification reviews |
| | • | | Tax distribution analysis and planning |
| | • | | Tax authority examination services |
| | • | | Tax appeals support services |
| | • | | Accounting methods studies |
| | • | | Fund merger support services |
| | • | | Tax consulting services and related projects |
Individual tax services that fall within one of these categories and are not presented to the Audit Committee as part of the annual pre-approval process are subject to an authorized pre-approval by the Audit Committee so long as the estimated fee for those services does not exceed $30,000. Any services provided under such pre-approval will be reported to the Audit Committee at its next regular meeting. Should the amount of such services exceed $30,000 any additional fees will be subject to pre-approval by the Committee Chair (or any other Committee member on whom this responsibility has been delegated).
Other Non-Audit Services
Certain non-audit services that the independent accountants are legally permitted to render will be subject to pre-approval by the Committee or by one or more Committee members to whom the Committee has delegated this authority and who will report to the full Committee any pre-approval decisions made pursuant to this Policy. Non-audit services presented for pre-approval pursuant to this paragraph will be accompanied by a confirmation from both the Treasurer and the independent accountants that the proposed services will not adversely affect the independence of the independent accountants.
Proscribed Services
The Fund’s independent accountants will not render services in the following categories of non-audit services:
| | • | | Bookkeeping or other services related to the accounting records or financial statements of the Fund |
| | • | | Financial information systems design and implementation |
| | • | | Appraisal or valuation services, fairness opinions, or contribution-in-kind reports |
| | • | | Internal audit outsourcing services |
| | • | | Management functions or human resources |
| | • | | Broker or dealer, investment adviser, or investment banking services |
| | • | | Legal services and expert services unrelated to the audit |
| | • | | Any other service that the Public Company Accounting Oversight Board determines, by regulation, is impermissible. |
Pre-approval of Non-Audit Services Provided to Other Entities Within the PGIM Fund Complex
Certain non-audit services provided to PGIM Investments LLC or any of its affiliates that also provide ongoing services to the PGIM Mutual Funds will be subject to pre-approval by the Audit Committee. The only non-audit services provided to these entities that will require pre-approval are those related directly to the operations and financial reporting of the Funds. Individual projects that are not presented to the Audit Committee as part of the annual pre-approval process will be subject to pre-approval by the Committee Chair (or any other Committee member on whom this responsibility has been delegated) so long as the estimated fee for those services does not exceed $30,000. Services presented for pre-approval pursuant to this paragraph will be accompanied by a confirmation from both the Treasurer and the independent accountants that the proposed services will not adversely affect the independence of the independent accountants.
Although the Audit Committee will not pre-approve all services provided to PGIM Investments LLC and its affiliates, the Committee will receive an annual report from the Fund’s independent accounting firm showing the aggregate fees for all services provided to PGIM Investments and its affiliates.
(e) (2) Percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X –
| | | | | | |
| | | | | Fiscal Year Ended September 30,
2024 | | Fiscal Year Ended September 30,
2023 |
| | 4(b) | | Not applicable. | | Not applicable. |
| | 4(c) | | Not applicable. | | Not applicable. |
| | 4(d) | | Not applicable. | | Not applicable. |
| | (f) | Percentage of hours expended attributable to work performed by other than full time employees of principal accountant if greater than 50%. |
The percentage of hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees was 0%.
(g) Non-Audit Fees
The aggregate non-audit fees billed by the Registrant’s principal accountant for services rendered to the registrant’s investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant for the fiscal years ended September 30, 2024 and September 30, 2023 was $0 and $0, respectively.
(h) Principal Accountant’s Independence
Not applicable as the Registrant’s principal accountant has not provided non-audit services to the registrant’s investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X.
(i) Not applicable.
(j) Not applicable.
Item 5 – Audit Committee of Listed Registrants – Not applicable.
Item 6 – Investments – The registrant’s Schedule of Investments is included in the financial statements filed under Item 7 of this Form.
Items 7 – 11 (Refer to Report below)
PRUDENTIAL INVESTMENT PORTFOLIOS, INC.
PGIM Balanced Fund
FINANCIAL STATEMENTS AND OTHER INFORMATION
SEPTEMBER 30, 2024
| | | | |
Table of Contents | | Financial Statements and Other Information | | September 30, 2024 |
Form N-CSR Item 7 - Financial Statements and Financial Highlights for Open-End Management Investment Companies.
Other Information - Form N-CSR Items 8-11
Schedule of Investments
as of September 30, 2024
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
LONG-TERM INVESTMENTS 98.6% | | | | | | | | |
| | |
AFFILIATED EXCHANGE-TRADED FUND 0.1% | | | | | | | | |
| | |
PGIM AAA CLO ETF (cost $1,053,777)(wa) | | | 20,641 | | | $ | 1,057,645 | |
| | | | | | | | |
| | |
COMMON STOCKS 60.2% | | | | | | | | |
| | |
Aerospace & Defense 1.6% | | | | | | | | |
| | |
AAR Corp.* | | | 600 | | | | 39,216 | |
Bharat Electronics Ltd. (India) | | | 87,464 | | | | 298,010 | |
Byrna Technologies, Inc.*(a) | | | 1,700 | | | | 28,849 | |
General Dynamics Corp. | | | 8,700 | | | | 2,629,140 | |
Hindustan Aeronautics Ltd. (India) | | | 11,327 | | | | 597,701 | |
Howmet Aerospace, Inc. | | | 5,600 | | | | 561,400 | |
Kongsberg Gruppen ASA (Norway) | | | 2,920 | | | | 285,224 | |
L3Harris Technologies, Inc. | | | 11,700 | | | | 2,783,079 | |
Leonardo DRS, Inc.* | | | 700 | | | | 19,754 | |
Lockheed Martin Corp. | | | 6,100 | | | | 3,565,816 | |
Rocket Lab USA, Inc.* | | | 19,600 | | | | 190,708 | |
Rolls-Royce Holdings PLC (United Kingdom)* | | | 161,685 | | | | 1,144,324 | |
RTX Corp. | | | 23,900 | | | | 2,895,724 | |
Safran SA (France) | | | 4,090 | | | | 962,471 | |
| | | | | | | | |
| | |
| | | | | | | 16,001,416 | |
| | |
Air Freight & Logistics 0.4% | | | | | | | | |
| | |
FedEx Corp. | | | 9,150 | | | | 2,504,172 | |
United Parcel Service, Inc. (Class B Stock) | | | 9,200 | | | | 1,254,328 | |
| | | | | | | | |
| | |
| | | | | | | 3,758,500 | |
| | |
Automobile Components 0.1% | | | | | | | | |
| | |
Aisin Corp. (Japan) | | | 27,300 | | | | 303,347 | |
Cie Generale des Etablissements Michelin SCA (France) | | | 2,976 | | | | 120,865 | |
Dana, Inc. | | | 5,200 | | | | 54,912 | |
Goodyear Tire & Rubber Co. (The)* | | | 19,900 | | | | 176,115 | |
Hyundai Mobis Co. Ltd. (South Korea) | | | 3,566 | | | | 590,587 | |
Visteon Corp.* | | | 1,950 | | | | 185,718 | |
| | | | | | | | |
| | |
| | | | | | | 1,431,544 | |
| | |
Automobiles 1.3% | | | | | | | | |
| | |
Bajaj Auto Ltd. (India) | | | 276 | | | | 40,633 | |
BYD Co. Ltd. (China) (Class H Stock) | | | 3,500 | | | | 124,873 | |
Ford Motor Co. | | | 232,700 | | | | 2,457,312 | |
General Motors Co. | | | 63,300 | | | | 2,838,372 | |
Kia Corp. (South Korea) | | | 9,440 | | | | 718,816 | |
See Notes to Financial Statements.
PGIM Balanced Fund 1
Schedule of Investments (continued)
as of September 30, 2024
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Automobiles (cont’d.) | | | | | | | | |
| | |
Maruti Suzuki India Ltd. (India) | | | 624 | | | $ | 98,529 | |
Subaru Corp. (Japan) | | | 33,300 | | | | 589,115 | |
Tata Motors Ltd. (India) | | | 59,273 | | | | 688,473 | |
Tesla, Inc.* | | | 22,250 | | | | 5,821,268 | |
Toyota Motor Corp. (Japan) | | | 11,770 | | | | 211,554 | |
| | | | | | | | |
| | |
| | | | | | | 13,588,945 | |
| | |
Banks 3.1% | | | | | | | | |
| | |
ABN AMRO Bank NV (Netherlands), 144A, CVA | | | 5,402 | | | | 97,624 | |
Alior Bank SA (Poland) | | | 1,240 | | | | 29,818 | |
Amalgamated Financial Corp. | | | 3,450 | | | | 108,227 | |
Ameris Bancorp | | | 2,600 | | | | 162,214 | |
Associated Banc-Corp. | | | 4,200 | | | | 90,468 | |
Axos Financial, Inc.* | | | 2,200 | | | | 138,336 | |
Banc of California, Inc. | | | 8,700 | | | | 128,151 | |
Banco Bilbao Vizcaya Argentaria SA (Spain) | | | 49,971 | | | | 539,800 | |
Banco BPM SpA (Italy) | | | 5,280 | | | | 35,674 | |
Banco del Bajio SA (Mexico), 144A | | | 66,600 | | | | 155,930 | |
Banco do Brasil SA (Brazil) | | | 139,200 | | | | 697,060 | |
Bank of America Corp. | | | 6,525 | | | | 258,912 | |
Bank of Georgia Group PLC (Georgia) | | | 8,315 | | | | 408,680 | |
Bank of Marin Bancorp | | | 3,300 | | | | 66,297 | |
Bank of Nanjing Co. Ltd. (China) (Class A Stock) | | | 44,200 | | | | 68,844 | |
Bank of Shanghai Co. Ltd. (China) (Class A Stock) | | | 89,000 | | | | 99,804 | |
Bank Polska Kasa Opieki SA (Poland) | | | 7,703 | | | | 294,099 | |
BankUnited, Inc. | | | 4,000 | | | | 145,760 | |
Barclays PLC (United Kingdom) | | | 188,405 | | | | 566,078 | |
BNK Financial Group, Inc. (South Korea) | | | 9,850 | | | | 67,926 | |
BNP Paribas SA (France) | | | 13,462 | | | | 923,785 | |
BPER Banca SpA (Italy) | | | 33,726 | | | | 190,020 | |
Byline Bancorp, Inc. | | | 1,200 | | | | 32,124 | |
CaixaBank SA (Spain) | | | 68,272 | | | | 407,444 | |
Camden National Corp. | | | 300 | | | | 12,396 | |
Canadian Imperial Bank of Commerce (Canada) | | | 3,700 | | | | 226,878 | |
Citigroup, Inc. | | | 6,400 | | | | 400,640 | |
Citizens Financial Group, Inc. | | | 16,000 | | | | 657,120 | |
Civista Bancshares, Inc. | | | 1,450 | | | | 25,839 | |
CNB Financial Corp. | | | 3,326 | | | | 80,024 | |
ConnectOne Bancorp, Inc. | | | 500 | | | | 12,525 | |
Credit Agricole SA (France) | | | 44,352 | | | | 678,270 | |
Customers Bancorp, Inc.* | | | 2,760 | | | | 128,202 | |
DBS Group Holdings Ltd. (Singapore) | | | 7,300 | | | | 216,184 | |
Dime Community Bancshares, Inc. | | | 4,200 | | | | 120,960 | |
Emirates NBD Bank PJSC (United Arab Emirates) | | | 144,022 | | | | 796,096 | |
See Notes to Financial Statements.
2
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Banks (cont’d.) | | | | | | | | |
| | |
Erste Group Bank AG (Austria) | | | 13,162 | | | $ | 721,258 | |
Financial Institutions, Inc. | | | 2,502 | | | | 63,726 | |
First BanCorp. (Puerto Rico) | | | 6,200 | | | | 131,254 | |
First Commonwealth Financial Corp. | | | 1,500 | | | | 25,725 | |
First Financial Bancorp | | | 5,600 | | | | 141,288 | |
First Interstate BancSystem, Inc. (Class A Stock) | | | 1,400 | | | | 42,952 | |
Flushing Financial Corp. | | | 7,200 | | | | 104,976 | |
Fulton Financial Corp. | | | 8,500 | | | | 154,105 | |
Hana Financial Group, Inc. (South Korea) | | | 13,636 | | | | 611,874 | |
Hanmi Financial Corp. | | | 2,700 | | | | 50,220 | |
HSBC Holdings PLC (United Kingdom) | | | 79,676 | | | | 714,775 | |
Independent Bank Corp. | | | 1,000 | | | | 59,130 | |
Industrial Bank Co. Ltd. (China) (Class A Stock) | | | 82,000 | | | | 223,704 | |
ING Groep NV (Netherlands) | | | 38,286 | | | | 694,624 | |
Intesa Sanpaolo SpA (Italy) | | | 256,392 | | | | 1,097,537 | |
JB Financial Group Co. Ltd. (South Korea) | | | 7,800 | | | | 90,895 | |
JPMorgan Chase & Co. | | | 25,574 | | | | 5,392,534 | |
KB Financial Group, Inc. (South Korea) | | | 14,269 | | | | 880,430 | |
Midland States Bancorp, Inc. | | | 3,600 | | | | 80,568 | |
MidWestOne Financial Group, Inc. | | | 1,633 | | | | 46,589 | |
MVB Financial Corp. | | | 3,100 | | | | 60,016 | |
NatWest Group PLC (United Kingdom) | | | 140,236 | | | | 649,202 | |
Nordea Bank Abp (Finland) | | | 64,705 | | | | 763,858 | |
Oversea-Chinese Banking Corp. Ltd. (Singapore) | | | 55,000 | | | | 643,829 | |
Pathward Financial, Inc. | | | 1,700 | | | | 112,217 | |
Peapack-Gladstone Financial Corp. | | | 4,000 | | | | 109,640 | |
Popular, Inc. (Puerto Rico) | | | 7,000 | | | | 701,890 | |
Powszechna Kasa Oszczednosci Bank Polski SA (Poland) | | | 14,044 | | | | 204,652 | |
Primis Financial Corp. | | | 8,530 | | | | 103,895 | |
Provident Financial Services, Inc. | | | 7,000 | | | | 129,920 | |
QCR Holdings, Inc. | | | 323 | | | | 23,912 | |
Raiffeisen Bank International AG (Austria) | | | 3,025 | | | | 60,255 | |
Renasant Corp. | | | 2,250 | | | | 73,125 | |
Royal Bank of Canada (Canada) | | | 1,700 | | | | 212,178 | |
Sandy Spring Bancorp, Inc. | | | 3,700 | | | | 116,069 | |
Santander Bank Polska SA (Poland) | | | 432 | | | | 51,049 | |
Sberbank of Russia PJSC (Russia)^ | | | 202,510 | | | | — | |
Shinhan Financial Group Co. Ltd. (South Korea) | | | 20,217 | | | | 857,455 | |
Simmons First National Corp. (Class A Stock) | | | 2,600 | | | | 56,004 | |
Skandinaviska Enskilda Banken AB (Sweden) (Class A Stock) | | | 46,202 | | | | 707,271 | |
SouthState Corp. | | | 2,300 | | | | 223,514 | |
Standard Bank Group Ltd. (South Africa) | | | 5,562 | | | | 77,890 | |
Standard Chartered PLC (United Kingdom) | | | 10,332 | | | | 109,581 | |
See Notes to Financial Statements.
PGIM Balanced Fund 3
Schedule of Investments (continued)
as of September 30, 2024
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Banks (cont’d.) | | | | | | | | |
| | |
Texas Capital Bancshares, Inc.* | | | 2,200 | | | $ | 157,212 | |
Truist Financial Corp. | | | 39,600 | | | | 1,693,692 | |
UMB Financial Corp. | | | 1,600 | | | | 168,176 | |
UniCredit SpA (Italy) | | | 25,450 | | | | 1,117,297 | |
United Bankshares, Inc. | | | 1,500 | | | | 55,650 | |
Univest Financial Corp. | | | 3,950 | | | | 111,153 | |
Veritex Holdings, Inc. | | | 4,600 | | | | 121,072 | |
Wells Fargo & Co. | | | 31,820 | | | | 1,797,512 | |
| | | | | | | | |
| | |
| | | | | | | 31,665,559 | |
| | |
Beverages 0.9% | | | | | | | | |
| | |
Ambev SA (Brazil) | | | 18,900 | | | | 45,553 | |
Anadolu Efes Biracilik Ve Malt Sanayii A/S (Turkey) | | | 29,150 | | | | 167,322 | |
Coca-Cola Co. (The) | | | 54,025 | | | | 3,882,236 | |
Coca-Cola HBC AG (Italy)* | | | 975 | | | | 34,761 | |
Coca-Cola Icecek A/S (Turkey) | | | 35,850 | | | | 59,736 | |
Keurig Dr. Pepper, Inc. | | | 75,000 | | | | 2,811,000 | |
National Beverage Corp. | | | 2,400 | | | | 112,656 | |
PepsiCo, Inc. | | | 11,950 | | | | 2,032,097 | |
Primo Water Corp. | | | 10,400 | | | | 262,600 | |
| | | | | | | | |
| | |
| | | | | | | 9,407,961 | |
| | |
Biotechnology 1.2% | | | | | | | | |
| | |
AbbVie, Inc. | | | 20,630 | | | | 4,074,012 | |
ADMA Biologics, Inc.* | | | 8,800 | | | | 175,912 | |
Alkermes PLC* | | | 6,300 | | | | 176,337 | |
Amgen, Inc. | | | 5,300 | | | | 1,707,713 | |
Amicus Therapeutics, Inc.* | | | 14,250 | | | | 152,190 | |
Annexon, Inc.* | | | 5,700 | | | | 33,744 | |
Avidity Biosciences, Inc.* | | | 400 | | | | 18,372 | |
BioCryst Pharmaceuticals, Inc.* | | | 16,500 | | | | 125,400 | |
Biogen, Inc.* | | | 13,000 | | | | 2,519,920 | |
Blueprint Medicines Corp.* | | | 2,100 | | | | 194,250 | |
CareDx, Inc.* | | | 4,100 | | | | 128,023 | |
Catalyst Pharmaceuticals, Inc.* | | | 7,000 | | | | 139,160 | |
Celcuity, Inc.* | | | 2,500 | | | | 37,275 | |
Cytokinetics, Inc.* | | | 600 | | | | 31,680 | |
Denali Therapeutics, Inc.* | | | 5,000 | | | | 145,650 | |
Dyne Therapeutics, Inc.* | | | 3,300 | | | | 118,536 | |
Editas Medicine, Inc.* | | | 10,700 | | | | 36,487 | |
Enanta Pharmaceuticals, Inc.* | | | 5,100 | | | | 52,836 | |
Fate Therapeutics, Inc.* | | | 6,600 | | | | 23,100 | |
Gilead Sciences, Inc. | | | 10,700 | | | | 897,088 | |
See Notes to Financial Statements.
4
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Biotechnology (cont’d.) | | | | | | | | |
| | |
Halozyme Therapeutics, Inc.* | | | 3,800 | | | $ | 217,512 | |
Insmed, Inc.* | | | 1,600 | | | | 116,800 | |
iTeos Therapeutics, Inc.* | | | 6,050 | | | | 61,771 | |
Kiniksa Pharmaceuticals International PLC* | | | 4,700 | | | | 117,453 | |
Kymera Therapeutics, Inc.* | | | 1,200 | | | | 56,796 | |
MannKind Corp.* | | | 16,500 | | | | 103,785 | |
MiMedx Group, Inc.* | | | 10,100 | | | | 59,691 | |
Myriad Genetics, Inc.* | | | 5,300 | | | | 145,167 | |
Nkarta, Inc.* | | | 4,500 | | | | 20,340 | |
Relay Therapeutics, Inc.* | | | 11,800 | | | | 83,544 | |
REVOLUTION Medicines, Inc.* | | | 1,000 | | | | 45,350 | |
Solid Biosciences, Inc.* | | | 4,000 | | | | 27,880 | |
TG Therapeutics, Inc.* | | | 5,700 | | | | 133,323 | |
Travere Therapeutics, Inc.* | | | 8,700 | | | | 121,713 | |
Twist Bioscience Corp.* | | | 2,900 | | | | 131,022 | |
UroGen Pharma Ltd.* | | | 1,000 | | | | 12,700 | |
Vanda Pharmaceuticals, Inc.* | | | 15,677 | | | | 73,525 | |
Vaxcyte, Inc.* | | | 1,300 | | | | 148,551 | |
Vera Therapeutics, Inc.* | | | 1,100 | | | | 48,620 | |
Vir Biotechnology, Inc.* | | | 8,000 | | | | 59,920 | |
Voyager Therapeutics, Inc.* | | | 10,400 | | | | 60,840 | |
Zymeworks, Inc.* | | | 1,200 | | | | 15,060 | |
| | | | | | | | |
| | |
| | | | | | | 12,649,048 | |
| | |
Broadline Retail 1.9% | | | | | | | | |
| | |
Alibaba Group Holding Ltd. (China) | | | 8,000 | | | | 106,310 | |
Amazon.com, Inc.* | | | 91,290 | | | | 17,010,066 | |
Dollarama, Inc. (Canada) | | | 9,400 | | | | 962,901 | |
eBay, Inc. | | | 18,400 | | | | 1,198,024 | |
J Front Retailing Co. Ltd. (Japan) | | | 7,800 | | | | 84,874 | |
Next PLC (United Kingdom) | | | 1,415 | | | | 185,360 | |
PDD Holdings, Inc. (China), ADR* | | | 1,800 | | | | 242,658 | |
Rakuten Group, Inc. (Japan)* | | | 15,000 | | | | 96,786 | |
| | | | | | | | |
| | |
| | | | | | | 19,886,979 | |
| | |
Building Products 0.4% | | | | | | | | |
| | |
Apogee Enterprises, Inc. | | | 1,500 | | | | 105,022 | |
Armstrong World Industries, Inc. | | | 8,500 | | | | 1,117,155 | |
Cie de Saint-Gobain SA (France) | | | 9,410 | | | | 858,216 | |
Griffon Corp. | | | 300 | | | | 21,000 | |
Masterbrand, Inc.* | | | 15,500 | | | | 287,370 | |
See Notes to Financial Statements.
PGIM Balanced Fund 5
Schedule of Investments (continued)
as of September 30, 2024
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Building Products (cont’d.) | | | | | | | | |
| | |
Resideo Technologies, Inc.* | | | 66,900 | | | $ | 1,347,366 | |
UFP Industries, Inc. | | | 700 | | | | 91,847 | |
| | | | | | | | |
| | |
| | | | | | | 3,827,976 | |
| | |
Capital Markets 1.7% | | | | | | | | |
| | |
3i Group PLC (United Kingdom) | | | 22,935 | | | | 1,015,986 | |
Aditya Birla Sun Life Asset Management Co. Ltd. (India) | | | 6,625 | | | | 56,945 | |
Amundi SA (France), 144A | | | 2,051 | | | | 153,306 | |
Bank of New York Mellon Corp. (The) | | | 28,850 | | | | 2,073,161 | |
BGC Group, Inc. (Class A Stock) | | | 4,100 | | | | 37,638 | |
Deutsche Bank AG (Germany) | | | 11,915 | | | | 206,269 | |
Donnelley Financial Solutions, Inc.* | | | 2,900 | | | | 190,907 | |
Goldman Sachs Group, Inc. (The) | | | 7,500 | | | | 3,713,325 | |
HDFC Asset Management Co. Ltd. (India), 144A | | | 720 | | | | 36,919 | |
Intercontinental Exchange, Inc. | | | 6,500 | | | | 1,044,160 | |
Investec PLC (United Kingdom) | | | 8,850 | | | | 67,358 | |
Janus Henderson Group PLC | | | 35,400 | | | | 1,347,678 | |
Morgan Stanley | | | 9,100 | | | | 948,584 | |
Nasdaq, Inc. | | | 5,600 | | | | 408,856 | |
Piper Sandler Cos. | | | 1,160 | | | | 329,220 | |
PJT Partners, Inc. (Class A Stock) | | | 300 | | | | 40,002 | |
Plus500 Ltd. (Israel) | | | 2,800 | | | | 93,596 | |
Raymond James Financial, Inc. | | | 6,800 | | | | 832,728 | |
Reinet Investments SCA (Luxembourg) | | | 4,514 | | | | 125,131 | |
S&P Global, Inc. | | | 7,000 | | | | 3,616,340 | |
Samsung Securities Co. Ltd. (South Korea) | | | 1,794 | | | | 59,626 | |
State Street Corp. | | | 4,200 | | | | 371,574 | |
StepStone Group, Inc. (Class A Stock) | | | 4,500 | | | | 255,735 | |
UBS Group AG (Switzerland) | | | 14,896 | | | | 460,943 | |
Victory Capital Holdings, Inc. (Class A Stock) | | | 1,600 | | | | 88,640 | |
Virtus Investment Partners, Inc. | | | 340 | | | | 71,213 | |
| | | | | | | | |
| | |
| | | | | | | 17,645,840 | |
| | |
Chemicals 0.5% | | | | | | | | |
| | |
AdvanSix, Inc. | | | 4,450 | | | | 135,191 | |
Avient Corp. | | | 5,400 | | | | 271,728 | |
Cabot Corp. | | | 3,100 | | | | 346,487 | |
Chugoku Marine Paints Ltd. (Japan) | | | 3,400 | | | | 49,049 | |
Ecolab, Inc. | | | 1,000 | | | | 255,330 | |
Ecovyst, Inc.* | | | 12,700 | | | | 86,995 | |
Givaudan SA (Switzerland) | | | 58 | | | | 318,220 | |
International Flavors & Fragrances, Inc. | | | 6,600 | | | | 692,538 | |
KCC Corp. (South Korea) | | | 156 | | | | 35,779 | |
See Notes to Financial Statements.
6
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Chemicals (cont’d.) | | | | | | | | |
| | |
Kemira OYJ (Finland) | | | 5,100 | | | $ | 127,280 | |
Lotte Chemical Titan Holding Bhd (Malaysia), 144A* | | | 295,000 | | | | 71,633 | |
LyondellBasell Industries NV (Class A Stock) | | | 2,300 | | | | 220,570 | |
Mitsubishi Chemical Group Corp. (Japan) | | | 33,600 | | | | 216,130 | |
PPG Industries, Inc. | | | 6,600 | | | | 874,236 | |
Sherwin-Williams Co. (The) | | | 4,800 | | | | 1,832,016 | |
Valhi, Inc. | | | 1,750 | | | | 58,397 | |
| | | | | | | | |
| | |
| | | | | | | 5,591,579 | |
| | |
Commercial Services & Supplies 0.3% | | | | | | | | |
| | |
ABM Industries, Inc. | | | 4,900 | | | | 258,524 | |
ACCO Brands Corp. | | | 24,500 | | | | 134,015 | |
Brambles Ltd. (Australia) | | | 53,000 | | | | 695,667 | |
Deluxe Corp. | | | 9,950 | | | | 193,925 | |
Interface, Inc. | | | 11,900 | | | | 225,743 | |
Pitney Bowes, Inc. | | | 21,200 | | | | 151,156 | |
Serco Group PLC (United Kingdom) | | | 37,043 | | | | 88,459 | |
Steelcase, Inc. (Class A Stock) | | | 5,100 | | | | 68,799 | |
Veralto Corp. | | | 13,000 | | | | 1,454,180 | |
| | | | | | | | |
| | |
| | | | | | | 3,270,468 | |
| | |
Communications Equipment 0.7% | | | | | | | | |
| | |
Arista Networks, Inc.* | | | 10,000 | | | | 3,838,200 | |
Cisco Systems, Inc. | | | 66,300 | | | | 3,528,486 | |
NetScout Systems, Inc.* | | | 5,800 | | | | 126,150 | |
Viavi Solutions, Inc.* | | | 7,700 | | | | 69,454 | |
Zhongji Innolight Co. Ltd. (China) (Class A Stock) | | | 2,800 | | | | 61,934 | |
| | | | | | | | |
| | |
| | | | | | | 7,624,224 | |
| | |
Construction & Engineering 0.2% | | | | | | | | |
| | |
ACS Actividades de Construccion y Servicios SA (Spain) | | | 8,210 | | | | 378,950 | |
Dycom Industries, Inc.* | | | 1,000 | | | | 197,100 | |
Eiffage SA (France) | | | 4,213 | | | | 406,831 | |
Fluor Corp.* | | | 7,100 | | | | 338,741 | |
Koninklijke BAM Groep NV (Netherlands) | | | 15,400 | | | | 72,152 | |
MasTec, Inc.* | | | 1,200 | | | | 147,720 | |
Matrix Service Co.* | | | 1,100 | | | | 12,683 | |
Primoris Services Corp. | | | 400 | | | | 23,232 | |
Sterling Infrastructure, Inc.* | | | 900 | | | | 130,518 | |
See Notes to Financial Statements.
PGIM Balanced Fund 7
Schedule of Investments (continued)
as of September 30, 2024
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Construction & Engineering (cont’d.) | | | | | | | | |
| | |
Tutor Perini Corp.* | | | 10,300 | | | $ | 279,748 | |
Webuild SpA (Italy) | | | 21,900 | | | | 61,949 | |
| | | | | | | | |
| | |
| | | | | | | 2,049,624 | |
| | |
Construction Materials 0.4% | | | | | | | | |
| | |
Buzzi SpA (Italy) | | | 1,380 | | | | 55,065 | |
CRH PLC | | | 23,700 | | | | 2,197,938 | |
Heidelberg Materials AG (Germany) | | | 7,144 | | | | 778,267 | |
Holcim AG* | | | 6,101 | | | | 597,488 | |
Knife River Corp.* | | | 900 | | | | 80,451 | |
| | | | | | | | |
| | |
| | | | | | | 3,709,209 | |
| | |
Consumer Finance 0.1% | | | | | | | | |
| | |
Enova International, Inc.* | | | 3,500 | | | | 293,265 | |
LendingClub Corp.* | | | 15,800 | | | | 180,594 | |
LendingTree, Inc.* | | | 1,900 | | | | 110,257 | |
PROG Holdings, Inc. | | | 1,900 | | | | 92,131 | |
| | | | | | | | |
| | |
| | | | | | | 676,247 | |
| | |
Consumer Staples Distribution & Retail 1.0% | | | | | | | | |
| | |
Andersons, Inc. (The) | | | 300 | | | | 15,042 | |
Coles Group Ltd. (Australia) | | | 26,618 | | | | 331,833 | |
Costco Wholesale Corp. | | | 1,625 | | | | 1,440,595 | |
George Weston Ltd. (Canada) | | | 1,600 | | | | 268,550 | |
Koninklijke Ahold Delhaize NV (Netherlands) | | | 22,971 | | | | 794,074 | |
Loblaw Cos. Ltd. (Canada) | | | 5,700 | | | | 758,960 | |
Metro, Inc. (Canada) | | | 600 | | | | 37,927 | |
Sonae SGPS SA (Portugal) | | | 47,449 | | | | 50,134 | |
Sprouts Farmers Market, Inc.* | | | 200 | | | | 22,082 | |
Target Corp. | | | 20,600 | | | | 3,210,716 | |
Tesco PLC (United Kingdom) | | | 157,601 | | | | 756,691 | |
United Natural Foods, Inc.* | | | 14,400 | | | | 242,208 | |
Walmart, Inc. | | | 25,825 | | | | 2,085,369 | |
| | | | | | | | |
| | |
| | | | | | | 10,014,181 | |
| | |
Containers & Packaging 0.0% | | | | | | | | |
| | |
O-I Glass, Inc.* | | | 16,050 | | | | 210,576 | |
Ranpak Holdings Corp.* | | | 2,300 | | | | 15,019 | |
| | | | | | | | |
| | |
| | | | | | | 225,595 | |
See Notes to Financial Statements.
8
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Diversified Consumer Services 0.1% | | | | | | | | |
| | |
Adtalem Global Education, Inc.* | | | 1,800 | | | $ | 135,864 | |
Coursera, Inc.* | | | 7,800 | | | | 61,932 | |
Frontdoor, Inc.* | | | 7,100 | | | | 340,729 | |
Graham Holdings Co. (Class B Stock) | | | 30 | | | | 24,652 | |
| | | | | | | | |
| | |
| | | | | | | 563,177 | |
| | |
Diversified REITs 0.0% | | | | | | | | |
| | |
Broadstone Net Lease, Inc. | | | 4,500 | | | | 85,275 | |
Empire State Realty Trust, Inc. (Class A Stock) | | | 1,100 | | | | 12,188 | |
KDX Realty Investment Corp. (Japan) | | | 70 | | | | 73,757 | |
| | | | | | | | |
| | |
| | | | | | | 171,220 | |
| | |
Diversified Telecommunication Services 0.9% | | | | | | | | |
| | |
AT&T, Inc. | | | 158,500 | | | | 3,487,000 | |
Deutsche Telekom AG (Germany) | | | 37,812 | | | | 1,110,510 | |
Indus Towers Ltd. (India)* | | | 5,247 | | | | 24,583 | |
Koninklijke KPN NV (Netherlands) | | | 110,686 | | | | 452,073 | |
Liberty Latin America Ltd. (Puerto Rico) (Class A Stock)* | | | 13,100 | | | | 125,498 | |
Liberty Latin America Ltd. (Puerto Rico) (Class C Stock)* | | | 18,250 | | | | 173,193 | |
Ooredoo QPSC (Qatar) | | | 134,810 | | | | 434,166 | |
Saudi Telecom Co. (Saudi Arabia) | | | 28,624 | | | | 333,565 | |
Telefonica Brasil SA (Brazil) | | | 13,100 | | | | 135,191 | |
U-Next Holdings Co. Ltd. (Japan) | | | 1,500 | | | | 57,488 | |
Verizon Communications, Inc. | | | 71,990 | | | | 3,233,071 | |
| | | | | | | | |
| | |
| | | | | | | 9,566,338 | |
| | |
Electric Utilities 0.7% | | | | | | | | |
| | |
Centrais Eletricas Brasileiras SA (Brazil) | | | 5,400 | | | | 38,956 | |
Chugoku Electric Power Co., Inc. (The) (Japan) | | | 41,300 | | | | 282,829 | |
Constellation Energy Corp. | | | 2,800 | | | | 728,056 | |
CPFL Energia SA (Brazil) | | | 36,000 | | | | 225,012 | |
Enel Chile SA (Chile) | | | 837,954 | | | | 46,194 | |
Fortum OYJ (Finland) | | | 1,911 | | | | 31,446 | |
Hokkaido Electric Power Co., Inc. (Japan) | | | 14,400 | | | | 96,912 | |
Hokuriku Electric Power Co. (Japan) | | | 7,800 | | | | 50,208 | |
Iberdrola SA (Spain) | | | 4,275 | | | | 66,088 | |
Inter RAO UES PJSC (Russia)^ | | | 4,433,000 | | | | 5 | |
Kansai Electric Power Co., Inc. (The) (Japan) | | | 21,200 | | | | 351,345 | |
NRG Energy, Inc. | | | 21,600 | | | | 1,967,760 | |
Portland General Electric Co. | | | 6,000 | | | | 287,400 | |
Shikoku Electric Power Co., Inc. (Japan) | | | 21,800 | | | | 193,950 | |
Tohoku Electric Power Co., Inc. (Japan) | | | 19,500 | | | | 186,879 | |
See Notes to Financial Statements.
PGIM Balanced Fund 9
Schedule of Investments (continued)
as of September 30, 2024
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Electric Utilities (cont’d.) | | | | | | | | |
| | |
TXNM Energy, Inc. | | | 6,000 | | | $ | 262,620 | |
Xcel Energy, Inc. | | | 27,700 | | | | 1,808,810 | |
| | | | | | | | |
| | |
| | | | | | | 6,624,470 | |
| | |
Electrical Equipment 0.6% | | | | | | | | |
| | |
ABB India Ltd. (India) | | | 6,500 | | | | 624,695 | |
ABB Ltd. (Switzerland) | | | 21,342 | | | | 1,238,170 | |
Acuity Brands, Inc. | | | 3,200 | | | | 881,248 | |
Eaton Corp. PLC | | | 6,100 | | | | 2,021,784 | |
EnerSys | | | 2,950 | | | | 301,047 | |
Fluence Energy, Inc.* | | | 10,600 | | | | 240,726 | |
Fujikura Ltd. (Japan) | | | 13,000 | | | | 441,741 | |
Goneo Group Co. Ltd. (China) (Class A Stock) | | | 4,785 | | | | 56,462 | |
GS Yuasa Corp. (Japan) | | | 3,700 | | | | 74,009 | |
Havells India Ltd. (India) | | | 2,600 | | | | 62,434 | |
HD Hyundai Electric Co. Ltd. (South Korea) | | | 324 | | | | 81,518 | |
Legrand SA (France) | | | 736 | | | | 84,791 | |
Siemens Energy AG (Germany)* | | | 2,125 | | | | 78,455 | |
Sungrow Power Supply Co. Ltd. (China) (Class A Stock) | | | 16,182 | | | | 226,708 | |
WEG SA (Brazil) | | | 20,400 | | | | 204,535 | |
| | | | | | | | |
| | |
| | | | | | | 6,618,323 | |
| | |
Electronic Equipment, Instruments & Components 0.5% | | | | | | | | |
| | |
Amphenol Corp. (Class A Stock) | | | 13,500 | | | | 879,660 | |
Badger Meter, Inc. | | | 240 | | | | 52,418 | |
Belden, Inc. | | | 2,450 | | | | 286,969 | |
Celestica, Inc. (Canada)* | | | 7,200 | | | | 368,079 | |
Dexerials Corp. (Japan) | | | 3,300 | | | | 47,146 | |
FARO Technologies, Inc.* | | | 9,000 | | | | 172,260 | |
Hon Hai Precision Industry Co. Ltd. (Taiwan) | | | 134,000 | | | | 788,974 | |
Knowles Corp.* | | | 5,400 | | | | 97,362 | |
Maxell Ltd. (Japan) | | | 15,200 | | | | 196,111 | |
Mycronic AB (Sweden) | | | 1,675 | | | | 65,171 | |
Novanta, Inc.* | | | 300 | | | | 53,676 | |
PC Connection, Inc. | | | 1,500 | | | | 113,145 | |
Plexus Corp.* | | | 1,900 | | | | 259,749 | |
Rogers Corp.* | | | 500 | | | | 56,505 | |
Sanmina Corp.* | | | 1,300 | | | | 88,985 | |
TD SYNNEX Corp. | | | 8,800 | | | | 1,056,704 | |
TDK Corp. (Japan) | | | 52,000 | | | | 664,265 | |
TTM Technologies, Inc.* | | | 8,500 | | | | 155,125 | |
| | | | | | | | |
| | |
| | | | | | | 5,402,304 | |
See Notes to Financial Statements.
10
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Energy Equipment & Services 0.1% | | | | | | | | |
| | |
DMC Global, Inc.* | | | 12,600 | | | $ | 163,548 | |
Helmerich & Payne, Inc. | | | 5,400 | | | | 164,268 | |
Noble Corp. PLC(a) | | | 400 | | | | 14,456 | |
Oil States International, Inc.* | | | 19,800 | | | | 91,080 | |
ProPetro Holding Corp.* | | | 10,500 | | | | 80,430 | |
Schlumberger NV | | | 3,200 | | | | 134,240 | |
Tidewater, Inc.* | | | 900 | | | | 64,611 | |
| | | | | | | | |
| | |
| | | | | | | 712,633 | |
| | |
Entertainment 0.7% | | | | | | | | |
| | |
Cinemark Holdings, Inc.* | | | 3,800 | | | | 105,792 | |
CTS Eventim AG & Co. KGaA (Germany) | | | 2,451 | | | | 255,212 | |
Electronic Arts, Inc. | | | 1,000 | | | | 143,440 | |
NetEase, Inc. (China) | | | 33,500 | | | | 625,771 | |
Netflix, Inc.* | | | 7,750 | | | | 5,496,842 | |
Nexon Co. Ltd. (Japan) | | | 13,800 | | | | 274,232 | |
Walt Disney Co. (The) | | | 6,700 | | | | 644,473 | |
| | | | | | | | |
| | |
| | | | | | | 7,545,762 | |
| | |
Financial Services 2.3% | | | | | | | | |
| | |
Berkshire Hathaway, Inc. (Class B Stock)* | | | 12,149 | | | | 5,591,699 | |
Cannae Holdings, Inc. | | | 9,900 | | | | 188,694 | |
Compass Diversified Holdings, MLP | | | 1,100 | | | | 24,343 | |
Enact Holdings, Inc. | | | 7,900 | | | | 287,007 | |
Euronet Worldwide, Inc.* | | | 2,300 | | | | 228,229 | |
EXOR NV (Netherlands) | | | 6,222 | | | | 667,023 | |
Fidelity National Information Services, Inc. | | | 25,100 | | | | 2,102,125 | |
Helia Group Ltd. (Australia) | | | 210,502 | | | | 587,847 | |
Investor AB (Sweden) (Class B Stock) | | | 30,692 | | | | 945,811 | |
Mastercard, Inc. (Class A Stock) | | | 10,575 | | | | 5,221,935 | |
Mr. Cooper Group, Inc.* | | | 1,400 | | | | 129,052 | |
Paragon Banking Group PLC (United Kingdom) | | | 8,225 | | | | 85,425 | |
Payoneer Global, Inc.* | | | 11,700 | | | | 88,101 | |
PayPal Holdings, Inc.* | | | 45,100 | | | | 3,519,153 | |
Repay Holdings Corp.* | | | 16,100 | | | | 131,376 | |
Visa, Inc. (Class A Stock) | | | 12,105 | | | | 3,328,270 | |
| | | | | | | | |
| | |
| | | | | | | 23,126,090 | |
| | |
Food Products 0.4% | | | | | | | | |
| | |
Associated British Foods PLC (United Kingdom) | | | 14,540 | | | | 454,414 | |
Daesang Corp. (South Korea) | | | 2,755 | | | | 44,763 | |
First Pacific Co. Ltd. (Indonesia) | | | 308,000 | | | | 169,628 | |
See Notes to Financial Statements.
PGIM Balanced Fund 11
Schedule of Investments (continued)
as of September 30, 2024
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Food Products (cont’d.) | | | | | | | | |
| | |
Hain Celestial Group, Inc. (The)* | | | 25,200 | | | $ | 217,476 | |
Indofood Sukses Makmur Tbk PT (Indonesia) | | | 106,800 | | | | 49,742 | |
Inghams Group Ltd. (Australia) | | | 17,850 | | | | 36,312 | |
Ingredion, Inc. | | | 9,600 | | | | 1,319,328 | |
JBS SA | | | 51,200 | | | | 297,085 | |
Nestle SA | | | 5,399 | | | | 542,559 | |
Orion Corp. (South Korea) | | | 1,508 | | | | 111,918 | |
Ulker Biskuvi Sanayi A/S (Turkey)* | | | 26,925 | | | | 110,199 | |
WH Group Ltd. (Hong Kong), 144A | | | 70,000 | | | | 55,132 | |
Wilmar International Ltd. (China) | | | 64,200 | | | | 166,510 | |
| | | | | | | | |
| | |
| | | | | | | 3,575,066 | |
| | |
Gas Utilities 0.0% | | | | | | | | |
| | |
Rubis SCA (France) | | | 3,058 | | | | 83,545 | |
Southwest Gas Holdings, Inc. | | | 2,400 | | | | 177,024 | |
| | | | | | | | |
| | |
| | | | | | | 260,569 | |
| | |
Ground Transportation 0.8% | | | | | | | | |
| | |
ArcBest Corp. | | | 1,900 | | | | 206,055 | |
CSX Corp. | | | 89,800 | | | | 3,100,794 | |
Seibu Holdings, Inc. (Japan) | | | 12,800 | | | | 284,752 | |
Uber Technologies, Inc.* | | | 51,600 | | | | 3,878,256 | |
Union Pacific Corp. | | | 4,100 | | | | 1,010,568 | |
| | | | | | | | |
| | |
| | | | | | | 8,480,425 | |
| | |
Health Care Equipment & Supplies 1.2% | | | | | | | | |
| | |
Abbott Laboratories | | | 37,045 | | | | 4,223,501 | |
AngioDynamics, Inc.* | | | 3,500 | | | | 27,230 | |
Avanos Medical, Inc.* | | | 11,350 | | | | 272,741 | |
Axogen, Inc.* | | | 9,700 | | | | 135,994 | |
Becton, Dickinson & Co. | | | 11,900 | | | | 2,869,090 | |
Bioventus, Inc. (Class A Stock)* | | | 2,300 | | | | 27,485 | |
Boston Scientific Corp.* | | | 31,800 | | | | 2,664,840 | |
Glaukos Corp.* | | | 500 | | | | 65,140 | |
Haemonetics Corp.* | | | 950 | | | | 76,361 | |
ICU Medical, Inc.* | | | 1,500 | | | | 273,330 | |
Inogen, Inc.* | | | 5,200 | | | | 50,440 | |
Intuitive Surgical, Inc.* | | | 600 | | | | 294,762 | |
Japan Lifeline Co. Ltd. (Japan) | | | 9,600 | | | | 81,971 | |
LivaNova PLC* | | | 4,800 | | | | 252,192 | |
Medtronic PLC | | | 4,100 | | | | 369,123 | |
Nevro Corp.* | | | 6,000 | | | | 33,540 | |
See Notes to Financial Statements.
12
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Health Care Equipment & Supplies (cont’d.) | | | | | | | | |
| | |
Omnicell, Inc.* | | | 4,400 | | | $ | 191,840 | |
Tactile Systems Technology, Inc.* | | | 3,500 | | | | 51,135 | |
TaiDoc Technology Corp. (Taiwan) | | | 14,000 | | | | 68,599 | |
TransMedics Group, Inc.* | | | 200 | | | | 31,400 | |
| | | | | | | | |
| | |
| | | | | | | 12,060,714 | |
| | |
Health Care Providers & Services 0.9% | | | | | | | | |
| | |
Accolade, Inc.* | | | 17,300 | | | | 66,605 | |
Bumrungrad Hospital PCL (Thailand) | | | 55,200 | | | | 458,871 | |
Centene Corp.* | | | 6,400 | | | | 481,792 | |
Cigna Group (The) | | | 6,000 | | | | 2,078,640 | |
CorVel Corp.* | | | 850 | | | | 277,856 | |
Dr. Lal PathLabs Ltd. (India), 144A | | | 2,400 | | | | 94,646 | |
Elevance Health, Inc. | | | 2,400 | | | | 1,248,000 | |
Extendicare, Inc. (Canada) | | | 15,900 | | | | 111,451 | |
Hims & Hers Health, Inc.* | | | 12,200 | | | | 224,724 | |
MLP Saglik Hizmetleri A/S (Turkey), 144A* | | | 5,550 | | | | 53,070 | |
ModivCare, Inc.* | | | 1,500 | | | | 21,420 | |
Odontoprev SA (Brazil) | | | 27,800 | | | | 57,512 | |
Patterson Cos., Inc. | | | 3,900 | | | | 85,176 | |
Pediatrix Medical Group, Inc.* | | | 15,750 | | | | 182,542 | |
Quest Diagnostics, Inc. | | | 10,600 | | | | 1,645,650 | |
RadNet, Inc.* | | | 500 | | | | 34,695 | |
Suzuken Co. Ltd. (Japan) | | | 1,900 | | | | 66,688 | |
UnitedHealth Group, Inc. | | | 4,260 | | | | 2,490,737 | |
| | | | | | | | |
| | |
| | | | | | | 9,680,075 | |
| | |
Health Care REITs 0.1% | | | | | | | | |
| | |
Diversified Healthcare Trust | | | 44,250 | | | | 185,408 | |
Ventas, Inc. | | | 19,900 | | | | 1,276,187 | |
| | | | | | | | |
| | |
| | | | | | | 1,461,595 | |
| | |
Health Care Technology 0.0% | | | | | | | | |
| | |
Teladoc Health, Inc.* | | | 17,600 | | | | 161,568 | |
| | |
Hotel & Resort REITs 0.0% | | | | | | | | |
| | |
RLJ Lodging Trust | | | 1,600 | | | | 14,688 | |
| | |
Hotels, Restaurants & Leisure 0.9% | | | | | | | | |
| | |
Aristocrat Leisure Ltd. (Australia) | | | 15,862 | | | | 640,421 | |
Biglari Holdings, Inc. (Class B Stock)* | | | 120 | | | | 20,641 | |
Bloomin’ Brands, Inc. | | | 38,300 | | | | 633,099 | |
See Notes to Financial Statements.
PGIM Balanced Fund 13
Schedule of Investments (continued)
as of September 30, 2024
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Hotels, Restaurants & Leisure (cont’d.) | | | | | | | | |
| | |
Brinker International, Inc.* | | | 3,000 | | | $ | 229,590 | |
Chipotle Mexican Grill, Inc.* | | | 20,500 | | | | 1,181,210 | |
Darden Restaurants, Inc. | | | 5,600 | | | | 919,128 | |
Dave & Buster’s Entertainment, Inc.* | | | 56,950 | | | | 1,939,147 | |
La Francaise des Jeux SAEM (France), 144A | | | 12,186 | | | | 501,448 | |
Life Time Group Holdings, Inc.* | | | 8,800 | | | | 214,896 | |
McDonald’s Corp. | | | 3,120 | | | | 950,071 | |
Meituan (China) (Class B Stock), 144A* | | | 46,500 | | | | 987,446 | |
Shake Shack, Inc. (Class A Stock)* | | | 2,900 | | | | 299,309 | |
Trip.com Group Ltd. (China)* | | | 2,900 | | | | 174,489 | |
TUI AG (Germany)* | | | 7,875 | | | | 60,118 | |
| | | | | | | | |
| | |
| | | | | | | 8,751,013 | |
| | |
Household Durables 0.2% | | | | | | | | |
| | |
Beijing Roborock Technology Co. Ltd. (China) (Class A Stock) | | | 1,400 | | | | 55,118 | |
Breville Group Ltd. (Australia) | | | 2,625 | | | | 61,780 | |
Casio Computer Co. Ltd. (Japan) | | | 22,700 | | | | 188,673 | |
Cavco Industries, Inc.* | | | 110 | | | | 47,106 | |
Champion Homes, Inc.* | | | 900 | | | | 85,365 | |
Garmin Ltd. | | | 900 | | | | 158,427 | |
GoPro, Inc. (Class A Stock)* | | | 13,500 | | | | 18,360 | |
Gree Electric Appliances, Inc. of Zhuhai (China) (Class A Stock) | | | 32,400 | | | | 219,861 | |
JVCKenwood Corp. (Japan) | | | 6,200 | | | | 58,591 | |
KB Home | | | 800 | | | | 68,552 | |
M/I Homes, Inc.* | | | 1,500 | | | | 257,040 | |
Meritage Homes Corp. | | | 540 | | | | 110,738 | |
Midea Group Co. Ltd. (China) (Class A Stock) | | | 18,200 | | | | 196,374 | |
Tamron Co. Ltd. (Japan) | | | 3,900 | | | | 123,096 | |
Tri Pointe Homes, Inc.* | | | 2,600 | | | | 117,806 | |
| | | | | | | | |
| | |
| | | | | | | 1,766,887 | |
| | |
Household Products 0.7% | | | | | | | | |
| | |
Colgate-Palmolive Co. | | | 36,525 | | | | 3,791,660 | |
Energizer Holdings, Inc. | | | 7,100 | | | | 225,496 | |
Essity AB (Sweden) (Class B Stock) | | | 24,498 | | | | 764,697 | |
Henkel AG & Co. KGaA (Germany) | | | 448 | | | | 38,086 | |
Kimberly-Clark Corp. | | | 4,200 | | | | 597,576 | |
Procter & Gamble Co. (The) | | | 8,904 | | | | 1,542,173 | |
| | | | | | | | |
| | |
| | | | | | | 6,959,688 | |
See Notes to Financial Statements.
14
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Independent Power & Renewable Electricity Producers 0.3% | | | | | | | | |
| | |
AES Corp. (The) | | | 123,500 | | | $ | 2,477,410 | |
Electric Power Development Co. Ltd. (Japan) | | | 16,200 | | | | 270,915 | |
| | | | | | | | |
| | |
| | | | | | | 2,748,325 | |
| | |
Industrial Conglomerates 0.5% | | | | | | | | |
| | |
3M Co. | | | 29,450 | | | | 4,025,815 | |
Hitachi Ltd. (Japan) | | | 35,000 | | | | 928,107 | |
Noritsu Koki Co. Ltd. (Japan) | | | 2,100 | | | | 64,340 | |
Siemens Ltd. (India) | | | 398 | | | | 34,403 | |
| | | | | | | | |
| | |
| | | | | | | 5,052,665 | |
| | |
Industrial REITs 0.4% | | | | | | | | |
| | |
Americold Realty Trust, Inc. | | | 22,750 | | | | 643,143 | |
Goodman Group (Australia) | | | 26,131 | | | | 666,576 | |
Innovative Industrial Properties, Inc. | | | 100 | | | | 13,460 | |
LXP Industrial Trust | | | 18,100 | | | | 181,905 | |
Prologis, Inc. | | | 22,100 | | | | 2,790,788 | |
| | | | | | | | |
| | |
| | | | | | | 4,295,872 | |
| | |
Insurance 1.9% | | | | | | | | |
| | |
Allstate Corp. (The) | | | 17,800 | | | | 3,375,770 | |
American Coastal Insurance Corp.* | | | 3,800 | | | | 42,826 | |
Assurant, Inc. | | | 8,200 | | | | 1,630,652 | |
Aviva PLC (United Kingdom) | | | 106,392 | | | | 689,076 | |
AXA SA (France) | | | 11,075 | | | | 426,353 | |
Cathay Financial Holding Co. Ltd. (Taiwan) | | | 288,000 | | | | 604,727 | |
China Pacific Insurance Group Co. Ltd. (China) (Class H Stock) | | | 22,400 | | | | 79,320 | |
CNO Financial Group, Inc. | | | 5,100 | | | | 179,010 | |
Fubon Financial Holding Co. Ltd. (Taiwan) | | | 37,050 | | | | 105,480 | |
Genworth Financial, Inc. (Class A Stock)* | | | 41,400 | | | | 283,590 | |
Great-West Lifeco, Inc. (Canada) | | | 20,400 | | | | 695,662 | |
Hamilton Insurance Group Ltd. (Bermuda) (Class B Stock)* | | | 2,500 | | | | 48,350 | |
Heritage Insurance Holdings, Inc.* | | | 2,000 | | | | 24,480 | |
Japan Post Holdings Co. Ltd. (Japan) | | | 12,200 | | | | 116,988 | |
Marsh & McLennan Cos., Inc. | | | 5,200 | | | | 1,160,068 | |
Medibank Private Ltd. (Australia) | | | 59,338 | | | | 149,707 | |
Mercury General Corp. | | | 2,600 | | | | 163,748 | |
MetLife, Inc. | | | 35,850 | | | | 2,956,908 | |
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen (Germany) | | | 2,098 | | | | 1,156,091 | |
See Notes to Financial Statements.
PGIM Balanced Fund 15
Schedule of Investments (continued)
as of September 30, 2024
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Insurance (cont’d.) | | | | | | | | |
| | |
Oscar Health, Inc. (Class A Stock)* | | | 10,400 | | | $ | 220,584 | |
Power Corp. of Canada (Canada) | | | 12,600 | | | | 397,439 | |
Progressive Corp. (The) | | | 16,200 | | | | 4,110,912 | |
Samsung Life Insurance Co. Ltd. (South Korea) | | | 1,626 | | | | 116,129 | |
Selectquote, Inc.* | | | 24,000 | | | | 52,080 | |
Skyward Specialty Insurance Group, Inc.* | | | 500 | | | | 20,365 | |
Sompo Holdings, Inc. (Japan) | | | 13,900 | | | | 313,317 | |
Talanx AG (Germany) | | | 936 | | | | 78,900 | |
United Fire Group, Inc. | | | 3,800 | | | | 79,534 | |
Willis Towers Watson PLC | | | 600 | | | | 176,718 | |
| | | | | | | | |
| | |
| | | | | | | 19,454,784 | |
| | |
Interactive Media & Services 3.2% | | | | | | | | |
| | |
Alphabet, Inc. (Class A Stock) | | | 63,200 | | | | 10,481,720 | |
Alphabet, Inc. (Class C Stock) | | | 54,440 | | | | 9,101,823 | |
Auto Trader Group PLC (United Kingdom), 144A | | | 33,708 | | | | 391,862 | |
Bumble, Inc. (Class A Stock)* | | | 10,900 | | | | 69,542 | |
EverQuote, Inc. (Class A Stock)* | | | 4,700 | | | | 99,123 | |
Kuaishou Technology (China), 144A* | | | 114,800 | | | | 788,822 | |
MediaAlpha, Inc. (Class A Stock)* | | | 1,200 | | | | 21,732 | |
Meta Platforms, Inc. (Class A Stock) | | | 18,869 | | | | 10,801,370 | |
Tencent Holdings Ltd. (China) | | | 13,700 | | | | 761,787 | |
| | | | | | | | |
| | |
| | | | | | | 32,517,781 | |
| | |
IT Services 0.5% | | | | | | | | |
| | |
CGI, Inc. (Canada)* | | | 2,300 | | | | 264,650 | |
Cognizant Technology Solutions Corp. (Class A Stock) | | | 12,400 | | | | 957,032 | |
Grid Dynamics Holdings, Inc.* | | | 2,900 | | | | 40,600 | |
Indra Sistemas SA (Spain) | | | 6,035 | | | | 110,935 | |
Infosys Ltd. (India) | | | 30,420 | | | | 679,484 | |
International Business Machines Corp. | | | 13,594 | | | | 3,005,361 | |
Unisys Corp.* | | | 3,100 | | | | 17,608 | |
Wix.com Ltd. (Israel)* | | | 500 | | | | 83,585 | |
Zensar Technologies Ltd. (India) | | | 24,695 | | | | 198,793 | |
| | | | | | | | |
| | |
| | | | | | | 5,358,048 | |
| | |
Leisure Products 0.1% | | | | | | | | |
| | |
Bandai Namco Holdings, Inc. (Japan) | | | 28,200 | | | | 643,473 | |
Solo Brands, Inc. (Class A Stock)* | | | 8,000 | | | | 11,280 | |
Tomy Co. Ltd. (Japan) | | | 6,800 | | | | 186,501 | |
| | | | | | | | |
| | |
| | | | | | | 841,254 | |
See Notes to Financial Statements.
16
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Life Sciences Tools & Services 0.9% | | | | | | | | |
| | |
Danaher Corp. | | | 12,800 | | | $ | 3,558,656 | |
Illumina, Inc.* | | | 5,500 | | | | 717,255 | |
Lonza Group AG (Switzerland) | | | 108 | | | | 68,535 | |
Maravai LifeSciences Holdings, Inc. (Class A Stock)* | | | 5,000 | | | | 41,550 | |
Thermo Fisher Scientific, Inc. | | | 8,058 | | | | 4,984,437 | |
| | | | | | | | |
| | |
| | | | | | | 9,370,433 | |
| | |
Machinery 0.8% | | | | | | | | |
| | |
Allison Transmission Holdings, Inc. | | | 17,200 | | | | 1,652,404 | |
Atlas Copco AB (Sweden) (Class B Stock) | | | 6,717 | | | | 115,249 | |
Cargotec OYJ (Finland) (Class B Stock) | | | 2,344 | | | | 137,006 | |
Chart Industries, Inc.*(a) | | | 600 | | | | 74,484 | |
Cummins India Ltd. (India) | | | 1,960 | | | | 89,113 | |
Donaldson Co., Inc. | | | 1,900 | | | | 140,030 | |
Epiroc AB (Sweden) (Class B Stock) | | | 1,729 | | | | 32,787 | |
Flowserve Corp. | | | 47,000 | | | | 2,429,430 | |
GEA Group AG (Germany) | | | 676 | | | | 33,155 | |
Hillenbrand, Inc. | | | 1,500 | | | | 41,700 | |
Hyster-Yale, Inc. | | | 2,100 | | | | 133,917 | |
Knorr-Bremse AG (Germany) | | | 319 | | | | 28,424 | |
Konecranes OYJ (Finland) | | | 6,342 | | | | 476,491 | |
Manitowoc Co., Inc. (The)* | | | 1,600 | | | | 15,392 | |
Mueller Water Products, Inc. (Class A Stock) | | | 12,100 | | | | 262,570 | |
NTN Corp. (Japan) | | | 116,900 | | | | 211,604 | |
Parker-Hannifin Corp. | | | 200 | | | | 126,364 | |
Proto Labs, Inc.* | | | 4,700 | | | | 138,039 | |
Rational AG (Germany) | | | 168 | | | | 171,519 | |
Schindler Holding AG (Switzerland) | | | 100 | | | | 28,441 | |
Shandong Himile Mechanical Science & Technology Co. Ltd. (China) (Class A Stock) | | | 10,400 | | | | 68,244 | |
Shibaura Machine Co. Ltd. (Japan) | | | 2,400 | | | | 66,664 | |
Shyft Group, Inc. (The) | | | 8,100 | | | | 101,655 | |
Tennant Co. | | | 2,300 | | | | 220,892 | |
Terex Corp. | | | 5,100 | | | | 269,841 | |
Volvo AB (Sweden) (Class B Stock) | | | 34,717 | | | | 918,341 | |
Wartsila OYJ Abp (Finland) | | | 8,541 | | | | 191,119 | |
Yutong Bus Co. Ltd. (China) (Class A Stock) | | | 44,000 | | | | 164,453 | |
| | | | | | | | |
| | |
| | | | | | | 8,339,328 | |
| | |
Marine Transportation 0.1% | | | | | | | | |
| | |
COSCO SHIPPING Holdings Co. Ltd. (China) (Class H Stock) | | | 20,000 | | | | 33,419 | |
Kawasaki Kisen Kaisha Ltd. (Japan) | | | 38,000 | | | | 592,401 | |
See Notes to Financial Statements.
PGIM Balanced Fund 17
Schedule of Investments (continued)
as of September 30, 2024
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Marine Transportation (cont’d.) | | | | | | | | |
| | |
Kirby Corp.* | | | 1,100 | | | $ | 134,673 | |
Matson, Inc. | | | 2,000 | | | | 285,240 | |
| | | | | | | | |
| | |
| | | | | | | 1,045,733 | |
| | |
Media 0.1% | | | | | | | | |
| | |
Magnite, Inc.* | | | 1,200 | | | | 16,620 | |
Publicis Groupe SA (France) | | | 6,605 | | | | 722,827 | |
| | | | | | | | |
| | |
| | | | | | | 739,447 | |
| | |
Metals & Mining 0.6% | | | | | | | | |
| | |
Agnico Eagle Mines Ltd. (Canada) | | | 2,200 | | | | 177,226 | |
Barrick Gold Corp. (Canada) | | | 39,700 | | | | 789,626 | |
Carpenter Technology Corp. | | | 2,400 | | | | 382,992 | |
Centerra Gold, Inc. (Canada) | | | 8,700 | | | | 62,462 | |
Commercial Metals Co. | | | 1,350 | | | | 74,196 | |
Dowa Holdings Co. Ltd. (Japan) | | | 1,500 | | | | 55,129 | |
Fortescue Ltd. (Australia) | | | 40,328 | | | | 568,810 | |
Freeport-McMoRan, Inc. | | | 16,000 | | | | 798,720 | |
Harmony Gold Mining Co. Ltd. (South Africa) | | | 2,398 | | | | 24,612 | |
Hindalco Industries Ltd. (India) | | | 80,616 | | | | 728,678 | |
Hudbay Minerals, Inc. (Canada) | | | 22,400 | | | | 206,038 | |
Kinross Gold Corp. (Canada) | | | 26,400 | | | | 247,320 | |
Maruichi Steel Tube Ltd. (Japan) | | | 1,400 | | | | 33,030 | |
Materion Corp. | | | 500 | | | | 55,930 | |
Olympic Steel, Inc. | | | 600 | | | | 23,400 | |
Polyus PJSC (Russia)*^ | | | 3,704 | | | | — | |
Radius Recycling, Inc. | | | 6,650 | | | | 123,291 | |
Rio Tinto Ltd. (Australia) | | | 1,610 | | | | 142,397 | |
Tokyo Steel Manufacturing Co. Ltd. (Japan) | | | 9,800 | | | | 135,445 | |
Vale SA (Brazil) | | | 51,200 | | | | 598,400 | |
Vedanta Ltd. (India) | | | 83,958 | | | | 513,068 | |
West African Resources Ltd. (Australia)* | | | 484,152 | | | | 574,043 | |
| | | | | | | | |
| | |
| | | | | | | 6,314,813 | |
| | |
Mortgage Real Estate Investment Trusts (REITs) 0.0% | | | | | | | | |
| | |
ARMOUR Residential REIT, Inc. | | | 900 | | | | 18,360 | |
Franklin BSP Realty Trust, Inc. | | | 1,000 | | | | 13,060 | |
Granite Point Mortgage Trust, Inc. | | | 16,800 | | | | 53,256 | |
MFA Financial, Inc. | | | 4,900 | | | | 62,328 | |
| | | | | | | | |
| | |
| | | | | | | 147,004 | |
See Notes to Financial Statements.
18
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Multi-Utilities 0.4% | | | | | | | | |
| | |
A2A SpA (Italy) | | | 132,125 | | | $ | 305,204 | |
AGL Energy Ltd. (Australia) | | | 7,375 | | | | 60,257 | |
Avista Corp. | | | 5,800 | | | | 224,750 | |
Black Hills Corp. | | | 4,450 | | | | 271,984 | |
Centrica PLC (United Kingdom) | | | 276,321 | | | | 432,205 | |
DTE Energy Co. | | | 17,700 | | | | 2,272,857 | |
Engie SA (France) | | | 42,827 | | | | 740,574 | |
| | | | | | | | |
| | |
| | | | | | | 4,307,831 | |
| | |
Office REITs 0.0% | | | | | | | | |
| | |
COPT Defense Properties | | | 1,600 | | | | 48,528 | |
Equity Commonwealth* | | | 5,800 | | | | 115,420 | |
Hudson Pacific Properties, Inc. | | | 10,400 | | | | 49,712 | |
Paramount Group, Inc. | | | 22,900 | | | | 112,668 | |
| | | | | | | | |
| | |
| | | | | | | 326,328 | |
| | |
Oil, Gas & Consumable Fuels 2.3% | | | | | | | | |
| | |
Amplify Energy Corp.* | | | 5,500 | | | | 35,915 | |
Antero Resources Corp.* | | | 17,200 | | | | 492,780 | |
Bharat Petroleum Corp. Ltd. (India) | | | 46,600 | | | | 205,353 | |
BW LPG Ltd. (Singapore), 144A | | | 22,795 | | | | 324,897 | |
California Resources Corp. | | | 5,100 | | | | 267,597 | |
Cheniere Energy, Inc. | | | 6,000 | | | | 1,079,040 | |
Chevron Corp. | | | 5,325 | | | | 784,213 | |
CNX Resources Corp.* | | | 3,500 | | | | 113,995 | |
Coal India Ltd. (India) | | | 6,876 | | | | 41,785 | |
ConocoPhillips | | | 23,100 | | | | 2,431,968 | |
Devon Energy Corp. | | | 43,300 | | | | 1,693,896 | |
Diamondback Energy, Inc. | | | 14,100 | | | | 2,430,840 | |
ENEOS Holdings, Inc. (Japan) | | | 107,500 | | | | 588,580 | |
Exxon Mobil Corp. | | | 37,925 | | | | 4,445,568 | |
Hafnia Ltd. (Singapore) | | | 21,317 | | | | 151,367 | |
Idemitsu Kosan Co. Ltd. (Japan) | | | 96,600 | | | | 700,480 | |
Imperial Oil Ltd. (Canada) | | | 6,500 | | | | 457,300 | |
Kinetik Holdings, Inc. | | | 1,700 | | | | 76,942 | |
Kosmos Energy Ltd. (Ghana)* | | | 3,100 | | | | 12,493 | |
LUKOIL PJSC (Russia)^ | | | 10,297 | | | | — | |
Murphy Oil Corp. | | | 8,450 | | | | 285,103 | |
Oil & Natural Gas Corp. Ltd. (India) | | | 204,673 | | | | 728,237 | |
Oil Refineries Ltd. (Israel) | | | 111,378 | | | | 28,748 | |
PBF Energy, Inc. (Class A Stock) | | | 8,400 | | | | 259,980 | |
Peabody Energy Corp. | | | 3,650 | | | | 96,871 | |
Pembina Pipeline Corp. (Canada) | | | 6,000 | | | | 247,329 | |
See Notes to Financial Statements.
PGIM Balanced Fund 19
Schedule of Investments (continued)
as of September 30, 2024
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Oil, Gas & Consumable Fuels (cont’d.) | | | | | | | | |
| | |
PetroChina Co. Ltd. (China) (Class H Stock) | | | 514,000 | | | $ | 414,629 | |
Petroleo Brasileiro SA (Brazil) | | | 16,600 | | | | 119,692 | |
Phillips 66 | | | 17,700 | | | | 2,326,665 | |
Riley Exploration Permian, Inc. | | | 800 | | | | 21,192 | |
Rosneft Oil Co. PJSC (Russia)^ | | | 31,520 | | | | — | |
Secure Energy Services, Inc. (Canada) | | | 14,000 | | | | 126,600 | |
Shell PLC | | | 12,357 | | | | 400,883 | |
SM Energy Co. | | | 6,300 | | | | 251,811 | |
TotalEnergies SE (France) | | | 4,698 | | | | 305,066 | |
Williams Cos., Inc. (The) | | | 33,100 | | | | 1,511,015 | |
World Kinect Corp. | | | 1,049 | | | | 32,425 | |
| | | | | | | | |
| | |
| | | | | | | 23,491,255 | |
| | |
Paper & Forest Products 0.0% | | | | | | | | |
| | |
Clearwater Paper Corp.* | | | 2,200 | | | | 62,788 | |
Navigator Co. SA (The) (Portugal) | | | 14,975 | | | | 61,435 | |
Sylvamo Corp. | | | 3,100 | | | | 266,135 | |
| | | | | | | | |
| | |
| | | | | | | 390,358 | |
| | |
Passenger Airlines 0.2% | | | | | | | | |
| | |
InterGlobe Aviation Ltd. (India), 144A* | | | 12,903 | | | | 735,997 | |
Singapore Airlines Ltd. (Singapore) | | | 114,600 | | | | 604,963 | |
SkyWest, Inc.* | | | 3,560 | | | | 302,671 | |
Turk Hava Yollari AO (Turkey)* | | | 13,025 | | | | 108,345 | |
| | | | | | | | |
| | |
| | | | | | | 1,751,976 | |
| | |
Personal Care Products 0.0% | | | | | | | | |
| | |
Chlitina Holding Ltd. (China) | | | 22,177 | | | | 106,919 | |
Colgate-Palmolive India Ltd. (India) | | | 730 | | | | 33,128 | |
Edgewell Personal Care Co. | | | 600 | | | | 21,804 | |
| | | | | | | | |
| | |
| | | | | | | 161,851 | |
| | |
Pharmaceuticals 3.0% | | | | | | | | |
| | |
Amneal Pharmaceuticals, Inc.* | | | 29,900 | | | | 248,768 | |
AstraZeneca PLC (United Kingdom) | | | 2,183 | | | | 340,082 | |
Aurobindo Pharma Ltd. (India) | | | 1,790 | | | | 31,182 | |
Bristol-Myers Squibb Co. | | | 21,045 | | | | 1,088,868 | |
Cipla Ltd. (India) | | | 10,250 | | | | 202,516 | |
Daiichi Sankyo Co. Ltd. (Japan) | | | 25,900 | | | | 855,538 | |
Dr. Reddy’s Laboratories Ltd. (India) | | | 3,862 | | | | 310,883 | |
Elanco Animal Health, Inc.* | | | 101,700 | | | | 1,493,973 | |
See Notes to Financial Statements.
20
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Pharmaceuticals (cont’d.) | | | | | | | | |
| | |
Eli Lilly & Co. | | | 8,050 | | | $ | 7,131,817 | |
GSK PLC | | | 48,315 | | | | 983,743 | |
H. Lundbeck A/S (Denmark) | | | 9,675 | | | | 62,605 | |
Hikma Pharmaceuticals PLC (Jordan) | | | 900 | | | | 23,031 | |
Ipsen SA (France) | | | 181 | | | | 22,296 | |
Johnson & Johnson | | | 36,519 | | | | 5,918,269 | |
Kyowa Kirin Co. Ltd. (Japan) | | | 1,200 | | | | 21,176 | |
Ligand Pharmaceuticals, Inc.* | | | 2,400 | | | | 240,216 | |
Lupin Ltd. (India) | | | 7,350 | | | | 192,181 | |
Merck & Co., Inc. | | | 39,025 | | | | 4,431,679 | |
Merck KGaA (Germany) | | | 844 | | | | 148,992 | |
Novartis AG (Switzerland) | | | 14,873 | | | | 1,712,513 | |
Novo Nordisk A/S (Denmark) (Class B Stock) | | | 14,861 | | | | 1,762,686 | |
Otsuka Holdings Co. Ltd. (Japan) | | | 9,600 | | | | 545,272 | |
Pacira BioSciences, Inc.* | | | 12,100 | | | | 182,105 | |
Prestige Consumer Healthcare, Inc.* | | | 3,710 | | | | 267,491 | |
Roche Holding AG | | | 4,609 | | | | 1,474,959 | |
Sanofi SA | | | 1,113 | | | | 128,150 | |
Shionogi & Co. Ltd. (Japan) | | | 31,500 | | | | 451,527 | |
SIGA Technologies, Inc. | | | 7,900 | | | | 53,325 | |
Sun Pharmaceutical Industries Ltd. (India) | | | 31,001 | | | | 712,726 | |
Takeda Pharmaceutical Co. Ltd. (Japan) | | | 6,800 | | | | 195,932 | |
| | | | | | | | |
| | |
| | | | | | | 31,234,501 | |
| | |
Professional Services 0.2% | | | | | | | | |
| | |
Computershare Ltd. (Australia) | | | 8,031 | | | | 140,003 | |
Conduent, Inc.* | | | 7,800 | | | | 31,434 | |
Dun & Bradstreet Holdings, Inc. | | | 20,700 | | | | 238,257 | |
ExlService Holdings, Inc.* | | | 900 | | | | 34,335 | |
ICF International, Inc. | | | 1,000 | | | | 166,790 | |
Korn Ferry | | | 2,500 | | | | 188,100 | |
Persol Holdings Co. Ltd. (Japan) | | | 106,800 | | | | 192,468 | |
Resources Connection, Inc. | | | 4,600 | | | | 44,620 | |
Thomson Reuters Corp. (Canada) | | | 500 | | | | 85,286 | |
TriNet Group, Inc. | | | 2,400 | | | | 232,728 | |
TrueBlue, Inc.* | | | 8,750 | | | | 69,038 | |
TTEC Holdings, Inc. | | | 17,350 | | | | 101,844 | |
Visional, Inc. (Japan)* | | | 1,800 | | | | 99,446 | |
Wolters Kluwer NV (Netherlands) | | | 1,456 | | | | 245,586 | |
| | | | | | | | |
| | |
| | | | | | | 1,869,935 | |
| | |
Real Estate Management & Development 0.4% | | | | | | | | |
| | |
Aeon Mall Co. Ltd. (Japan) | | | 4,700 | | | | 68,576 | |
See Notes to Financial Statements.
PGIM Balanced Fund 21
Schedule of Investments (continued)
as of September 30, 2024
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Real Estate Management & Development (cont’d.) | | | | | | | | |
| | |
Aldar Properties PJSC (United Arab Emirates) | | | 17,796 | | | $ | 36,408 | |
Anywhere Real Estate, Inc.* | | | 35,150 | | | | 178,562 | |
Compass, Inc. (Class A Stock)* | | | 30,400 | | | | 185,744 | |
CoStar Group, Inc.* | | | 3,000 | | | | 226,320 | |
Cushman & Wakefield PLC* | | | 20,800 | | | | 283,504 | |
DLF Ltd. (India) | | | 3,262 | | | | 34,806 | |
Emaar Properties PJSC (United Arab Emirates) | | | 310,226 | | | | 736,040 | |
Jones Lang LaSalle, Inc.* | | | 7,100 | | | | 1,915,651 | |
Zillow Group, Inc. (Class A Stock)* | | | 3,000 | | | | 185,790 | |
Zillow Group, Inc. (Class C Stock)* | | | 5,000 | | | | 319,250 | |
| | | | | | | | |
| | |
| | | | | | | 4,170,651 | |
| | |
Residential REITs 0.3% | | | | | | | | |
| | |
Boardwalk Real Estate Investment Trust (Canada) | | | 1,100 | | | | 69,671 | |
Canadian Apartment Properties REIT (Canada) | | | 9,800 | | | | 398,463 | |
Equity Residential | | | 33,900 | | | | 2,524,194 | |
Killam Apartment Real Estate Investment Trust (Canada) | | | 4,400 | | | | 68,288 | |
| | | | | | | | |
| | |
| | | | | | | 3,060,616 | |
| | |
Retail REITs 0.1% | | | | | | | | |
| | |
Acadia Realty Trust | | | 6,500 | | | | 152,620 | |
InvenTrust Properties Corp. | | | 7,600 | | | | 215,612 | |
Klepierre SA (France) | | | 22,906 | | | | 750,538 | |
Macerich Co. (The) | | | 2,000 | | | | 36,480 | |
Scentre Group (Australia) | | | 23,166 | | | | 58,237 | |
Tanger, Inc. | | | 400 | | | | 13,272 | |
Urban Edge Properties | | | 1,000 | | | | 21,390 | |
| | | | | | | | |
| | |
| | | | | | | 1,248,149 | |
| | |
Semiconductors & Semiconductor Equipment 6.0% | | | | | | | | |
| | |
Applied Materials, Inc. | | | 10,000 | | | | 2,020,500 | |
ASM International NV (Netherlands) | | | 797 | | | | 525,829 | |
ASML Holding NV (Netherlands) | | | 1,892 | | | | 1,573,880 | |
Broadcom, Inc. | | | 29,950 | | | | 5,166,375 | |
FormFactor, Inc.* | | | 3,500 | | | | 161,000 | |
Impinj, Inc.*(a) | | | 1,330 | | | | 287,972 | |
Lam Research Corp. | | | 2,100 | | | | 1,713,768 | |
Lasertec Corp. (Japan) | | | 800 | | | | 133,381 | |
MediaTek, Inc. (Taiwan) | | | 17,000 | | | | 626,544 | |
Micron Technology, Inc. | | | 23,000 | | | | 2,385,330 | |
NVIDIA Corp. | | | 255,500 | | | | 31,027,920 | |
NXP Semiconductors NV (China) | | | 2,000 | | | | 480,020 | |
See Notes to Financial Statements.
22
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Semiconductors & Semiconductor Equipment (cont’d.) | | | | | | | | |
| | |
Onto Innovation, Inc.* | | | 7,900 | | | $ | 1,639,724 | |
Photronics, Inc.* | | | 700 | | | | 17,332 | |
Qorvo, Inc.* | | | 15,800 | | | | 1,632,140 | |
QUALCOMM, Inc. | | | 26,100 | | | | 4,438,305 | |
Rambus, Inc.* | | | 6,600 | | | | 278,652 | |
SK Hynix, Inc. (South Korea) | | | 5,750 | | | | 769,562 | |
Synaptics, Inc.* | | | 3,300 | | | | 256,014 | |
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan) | | | 132,000 | | | | 3,980,348 | |
Teradyne, Inc. | | | 18,100 | | | | 2,424,133 | |
Ultra Clean Holdings, Inc.* | | | 6,200 | | | | 247,566 | |
| | | | | | | | |
| | |
| | | | | | | 61,786,295 | |
| | |
Software 4.7% | | | | | | | | |
| | |
A10 Networks, Inc. | | | 6,500 | | | | 93,860 | |
ACI Worldwide, Inc.* | | | 7,500 | | | | 381,750 | |
Adeia, Inc. | | | 11,650 | | | | 138,752 | |
Adobe, Inc.* | | | 3,568 | | | | 1,847,439 | |
Agilysys, Inc.* | | | 300 | | | | 32,691 | |
Alarm.com Holdings, Inc.* | | | 1,200 | | | | 65,604 | |
Alkami Technology, Inc.* | | | 5,700 | | | | 179,778 | |
Autodesk, Inc.* | | | 4,200 | | | | 1,157,016 | |
AvePoint, Inc.* | | | 3,400 | | | | 40,018 | |
Blackbaud, Inc.* | | | 500 | | | | 42,340 | |
Box, Inc. (Class A Stock)* | | | 8,150 | | | | 266,749 | |
Cerence, Inc.*(a) | | | 5,000 | | | | 15,750 | |
Check Point Software Technologies Ltd. (Israel)* | | | 4,700 | | | | 906,207 | |
Clearwater Analytics Holdings, Inc. (Class A Stock)* | | | 2,800 | | | | 70,700 | |
CommVault Systems, Inc.* | | | 1,350 | | | | 207,698 | |
Crowdstrike Holdings, Inc. (Class A Stock)* | | | 800 | | | | 224,376 | |
Gitlab, Inc. (Class A Stock)* | | | 16,200 | | | | 834,948 | |
Informatica, Inc. (Class A Stock)* | | | 48,000 | | | | 1,213,440 | |
Intapp, Inc.* | | | 4,900 | | | | 234,367 | |
Intuit, Inc. | | | 2,100 | | | | 1,304,100 | |
Jamf Holding Corp.* | | | 2,600 | | | | 45,110 | |
Microsoft Corp. | | | 65,016 | | | | 27,976,385 | |
Monday.com Ltd.* | | | 100 | | | | 27,777 | |
Money Forward, Inc. (Japan)* | | | 1,600 | | | | 65,193 | |
Nice Ltd. (Israel)* | | | 260 | | | | 45,204 | |
Open Text Corp. (Canada) | | | 1,900 | | | | 63,247 | |
Oracle Corp. | | | 5,500 | | | | 937,200 | |
Progress Software Corp. | | | 800 | | | | 53,896 | |
Q2 Holdings, Inc.* | | | 200 | | | | 15,954 | |
Roper Technologies, Inc. | | | 400 | | | | 222,576 | |
Salesforce, Inc. | | | 14,200 | | | | 3,886,682 | |
See Notes to Financial Statements.
PGIM Balanced Fund 23
Schedule of Investments (continued)
as of September 30, 2024
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Software (cont’d.) | | | | | | | | |
| | |
SAP SE (Germany) | | | 725 | | | $ | 165,831 | |
ServiceNow, Inc.* | | | 2,450 | | | | 2,191,255 | |
SolarWinds Corp. | | | 20,000 | | | | 261,000 | |
Technology One Ltd. (Australia) | | | 3,900 | | | | 64,184 | |
Teradata Corp.* | | | 14,375 | | | | 436,137 | |
Verint Systems, Inc.* | | | 47,100 | | | | 1,193,043 | |
WiseTech Global Ltd. (Australia) | | | 6,215 | | | | 588,538 | |
Workday, Inc. (Class A Stock)* | | | 2,700 | | | | 659,907 | |
Workiva, Inc.* | | | 200 | | | | 15,824 | |
Xero Ltd. (New Zealand)* | | | 625 | | | | 64,604 | |
Zeta Global Holdings Corp. (Class A Stock)* | | | 10,100 | | | | 301,283 | |
Zoom Video Communications, Inc. (Class A Stock)* | | | 3,600 | | | | 251,064 | |
| | | | | | | | |
| | |
| | | | | | | 48,789,477 | |
| | |
Specialized REITs 0.2% | | | | | | | | |
| | |
American Tower Corp. | | | 1,400 | | | | 325,584 | |
Equinix, Inc. | | | 400 | | | | 355,052 | |
Outfront Media, Inc. | | | 14,200 | | | | 260,996 | |
PotlatchDeltic Corp. | | | 1,000 | | | | 45,050 | |
Public Storage | | | 3,300 | | | | 1,200,771 | |
Safehold, Inc. | | | 7,000 | | | | 183,610 | |
| | | | | | | | |
| | |
| | | | | | | 2,371,063 | |
| | |
Specialty Retail 1.1% | | | | | | | | |
| | |
Abercrombie & Fitch Co. (Class A Stock)* | | | 1,400 | | | | 195,860 | |
American Eagle Outfitters, Inc. | | | 2,600 | | | | 58,214 | |
Boot Barn Holdings, Inc.* | | | 300 | | | | 50,184 | |
Foot Locker, Inc. | | | 5,200 | | | | 134,368 | |
Gap, Inc. (The) | | | 8,700 | | | | 191,835 | |
Group 1 Automotive, Inc. | | | 330 | | | | 126,403 | |
Haverty Furniture Cos., Inc. | | | 2,100 | | | | 57,687 | |
Home Depot, Inc. (The) | | | 10,558 | | | | 4,278,102 | |
Industria de Diseno Textil SA (Spain) | | | 19,412 | | | | 1,149,704 | |
JB Hi-Fi Ltd. (Australia) | | | 6,898 | | | | 379,643 | |
Lowe’s Cos., Inc. | | | 12,775 | | | | 3,460,109 | |
ODP Corp. (The)* | | | 2,300 | | | | 68,425 | |
Petco Health & Wellness Co., Inc.* | | | 83,700 | | | | 380,835 | |
Stitch Fix, Inc. (Class A Stock)* | | | 5,400 | | | | 15,228 | |
Trent Ltd. (India) | | | 9,863 | | | | 892,322 | |
Urban Outfitters, Inc.* | | | 600 | | | | 22,986 | |
Zalando SE (Germany), 144A* | | | 1,335 | | | | 44,124 | |
| | | | | | | | |
| | |
| | | | | | | 11,506,029 | |
See Notes to Financial Statements.
24
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Technology Hardware, Storage & Peripherals 4.0% | | | | | | | | |
| | |
Apple, Inc. | | | 154,754 | | | $ | 36,057,682 | |
Asustek Computer, Inc. (Taiwan) | | | 3,000 | | | | 52,117 | |
Hewlett Packard Enterprise Co. | | | 104,250 | | | | 2,132,955 | |
Logitech International SA (Switzerland) | | | 7,799 | | | | 698,485 | |
Quanta Computer, Inc. (Taiwan) | | | 86,000 | | | | 716,744 | |
Samsung Electronics Co. Ltd. (South Korea) | | | 7,676 | | | | 358,767 | |
Xiaomi Corp. (China) (Class B Stock), 144A* | | | 230,600 | | | | 649,530 | |
| | | | | | | | |
| | |
| | | | | | | 40,666,280 | |
| | |
Textiles, Apparel & Luxury Goods 0.3% | | | | | | | | |
| | |
adidas AG (Germany) | | | 3,195 | | | | 846,633 | |
ANTA Sports Products Ltd. (China) | | | 58,400 | | | | 691,330 | |
Asics Corp. (Japan) | | | 39,600 | | | | 831,922 | |
G-III Apparel Group Ltd.* | | | 4,600 | | | | 140,392 | |
Kontoor Brands, Inc. | | | 1,200 | | | | 98,136 | |
LVMH Moet Hennessy Louis Vuitton SE (France) | | | 301 | | | | 230,830 | |
Wolverine World Wide, Inc. | | | 8,000 | | | | 139,360 | |
| | | | | | | | |
| | |
| | | | | | | 2,978,603 | |
| | |
Tobacco 0.3% | | | | | | | | |
| | |
Altria Group, Inc. | | | 20,800 | | | | 1,061,632 | |
Godfrey Phillips India Ltd. (India) | | | 1,750 | | | | 145,603 | |
Imperial Brands PLC (United Kingdom) | | | 30,236 | | | | 879,537 | |
KT&G Corp. (South Korea) | | | 448 | | | | 37,141 | |
Scandinavian Tobacco Group A/S (Denmark), 144A | | | 16,662 | | | | 255,782 | |
Turning Point Brands, Inc. | | | 1,800 | | | | 77,670 | |
Universal Corp. | | | 3,000 | | | | 159,330 | |
| | | | | | | | |
| | |
| | | | | | | 2,616,695 | |
| | |
Trading Companies & Distributors 0.2% | | | | | | | | |
| | |
AerCap Holdings NV (Ireland) | | | 7,200 | | | | 681,984 | |
Beacon Roofing Supply, Inc.* | | | 2,200 | | | | 190,146 | |
GMS, Inc.* | | | 1,990 | | | | 180,234 | |
Herc Holdings, Inc. | | | 1,800 | | | | 286,974 | |
Hudson Technologies, Inc.* | | | 4,000 | | | | 33,360 | |
Mitsui & Co. Ltd. (Japan) | | | 23,500 | | | | 525,555 | |
MRC Global, Inc.* | | | 14,500 | | | | 184,730 | |
| | | | | | | | |
| | |
| | | | | | | 2,082,983 | |
| | |
Transportation Infrastructure 0.1% | | | | | | | | |
| | |
Aena SME SA (Spain), 144A | | | 2,821 | | | | 619,705 | |
See Notes to Financial Statements.
PGIM Balanced Fund 25
Schedule of Investments (continued)
as of September 30, 2024
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Transportation Infrastructure (cont’d.) | | | | | | | | |
| | |
Japan Airport Terminal Co. Ltd. (Japan) | | | 1,700 | | | $ | 61,347 | |
TAV Havalimanlari Holding A/S (Turkey)* | | | 5,185 | | | | 37,809 | |
| | | | | | | | |
| | |
| | | | | | | 718,861 | |
| | |
Water Utilities 0.0% | | | | | | | | |
| | |
California Water Service Group | | | 5,100 | | | | 276,522 | |
| | |
Wireless Telecommunication Services 0.1% | | | | | | | | |
| | |
Digicel International Finance Ltd. (Jamaica) (original cost $13,985; purchased 01/29/24 - 02/08/24)*^(f) | | | 11,557 | | | | 29,008 | |
Etihad Etisalat Co. (Saudi Arabia) | | | 7,865 | | | | 107,930 | |
Intelsat Emergence SA (Luxembourg)* | | | 4,226 | | | | 133,649 | |
KDDI Corp. (Japan) | | | 1,800 | | | | 57,668 | |
Spok Holdings, Inc. | | | 2,900 | | | | 43,674 | |
Telephone & Data Systems, Inc. | | | 7,300 | | | | 169,725 | |
T-Mobile US, Inc. | | | 4,200 | | | | 866,712 | |
| | | | | | | | |
| | |
| | | | | | | 1,408,366 | |
| | | | | | | | |
| | |
TOTAL COMMON STOCKS (cost $406,704,202) | | | | | | | 619,967,612 | |
| | | | | | | | |
| | |
PREFERRED STOCKS 0.2% | | | | | | | | |
| | |
Banks 0.1% | | | | | | | | |
| | |
Citigroup Capital XIII, 11.887%(c), 3 Month SOFR + 6.632%, Maturing 10/30/40 | | | 3,000 | | | | 89,610 | |
Itau Unibanco Holding SA (Brazil) (PRFC) | | | 109,200 | | | | 727,439 | |
| | | | | | | | |
| | |
| | | | | | | 817,049 | |
| | |
Capital Markets 0.0% | | | | | | | | |
| | |
State Street Corp., 5.350%(ff), Series G, Maturing 03/15/26(oo) | | | 5,000 | | | | 123,350 | |
| | |
Electric Utilities 0.0% | | | | | | | | |
| | |
Cia Energetica de Minas Gerais (Brazil) (PRFC) | | | 127,061 | | | | 267,057 | |
| | |
Household Products 0.0% | | | | | | | | |
| | |
Henkel AG & Co. KGaA (Germany) (PRFC) | | | 1,528 | | | | 143,632 | |
| | |
Oil, Gas & Consumable Fuels 0.1% | | | | | | | | |
| | |
Petroleo Brasileiro SA (Brazil) (PRFC) | | | 115,600 | | | | 765,616 | |
See Notes to Financial Statements.
26
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
PREFERRED STOCKS (Continued) | | | | | | | | |
| | |
Technology Hardware, Storage & Peripherals 0.0% | | | | | | | | |
| | |
Samsung Electronics Co. Ltd. (South Korea) (PRFC) | | | 3,708 | | | $ | 144,007 | |
| | |
Wireless Telecommunication Services 0.0% | | | | | | | | |
| | |
Digicel International Finance Ltd. (Jamaica) (original cost $7,380; purchased 01/26/24 - 01/29/24)*^(f) | | | 1,225 | | | | 13,234 | |
| | | | | | | | |
| | |
TOTAL PREFERRED STOCKS
(cost $1,903,139) | | | | | | | 2,273,945 | |
| | | | | | | | |
| | |
UNAFFILIATED EXCHANGE-TRADED FUNDS 0.1% | | | | | | | | |
iShares MSCI EAFE ETF(a) | | | 4,900 | | | | 409,787 | |
iShares MSCI Emerging Markets ETF(a) | | | 3,800 | | | | 174,268 | |
| | | | | | | | |
| | |
TOTAL UNAFFILIATED EXCHANGE-TRADED FUNDS
(cost $545,982) | | | | | | | 584,055 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | | |
| | | | |
ASSET-BACKED SECURITIES 4.6% | | | | | | | | | | | | | | | | |
| | | | |
Automobiles 0.6% | | | | | | | | | | | | | | | | |
| | | | |
AmeriCredit Automobile Receivables Trust, | | | | | | | | | | | | | | | | |
Series 2020-02, Class D | | | 2.130% | | | | 03/18/26 | | | | 100 | | | | 99,848 | |
Avis Budget Rental Car Funding AESOP LLC, | | | | | | | | | | | | | | | | |
Series 2020-02A, Class A, 144A | | | 2.020 | | | | 02/20/27 | | | | 100 | | | | 96,905 | |
Series 2021-02A, Class C, 144A | | | 2.350 | | | | 02/20/28 | | | | 500 | | | | 467,566 | |
Series 2023-03A, Class B, 144A | | | 6.120 | | | | 02/22/28 | | | | 400 | | | | 409,429 | |
Series 2024-01A, Class A, 144A | | | 5.360 | | | | 06/20/30 | | | | 400 | | | | 411,103 | |
Series 2024-01A, Class B, 144A | | | 5.850 | | | | 06/20/30 | | | | 100 | | | | 102,982 | |
Ford Credit Auto Owner Trust, | | | | | | | | | | | | | | | | |
Series 2021-01, Class C, 144A | | | 1.910 | | | | 10/17/33 | | | | 180 | | | | 171,939 | |
Series 2021-02, Class D, 144A | | | 2.600 | | | | 05/15/34 | | | | 300 | | | | 283,647 | |
Series 2023-01, Class C, 144A | | | 5.580 | | | | 08/15/35 | | | | 500 | | | | 508,124 | |
Hertz Vehicle Financing III LP, | | | | | | | | | | | | | | | | |
Series 2021-02A, Class A, 144A | | | 1.680 | | | | 12/27/27 | | | | 700 | | | | 659,207 | |
JPMorgan Chase Bank NA, | | | | | | | | | | | | | | | | |
Series 2021-02, Class D, 144A | | | 1.138 | | | | 12/26/28 | | | | 6 | | | | 6,399 | |
OneMain Direct Auto Receivables Trust, | | | | | | | | | | | | | | | | |
Series 2019-01A, Class A, 144A | | | 3.630 | | | | 09/14/27 | | | | 700 | | | | 695,611 | |
Series 2021-01A, Class C, 144A | | | 1.420 | | | | 07/14/28 | | | | 500 | | | | 477,886 | |
Series 2023-01A, Class B, 144A | | | 5.810 | | | | 02/14/31 | | | | 1,000 | | | | 1,029,515 | |
Series 2023-01A, Class C, 144A | | | 6.140 | | | | 02/14/31 | | | | 400 | | | | 411,648 | |
See Notes to Financial Statements.
PGIM Balanced Fund 27
Schedule of Investments (continued)
as of September 30, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount
(000)# | | | Value | |
| | | | |
ASSET-BACKED SECURITIES (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Automobiles (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
Santander Bank Auto Credit-Linked Notes, | | | | | | | | | | | | | | | | |
Series 2022-A, Class C, 144A | | | 7.375% | | | | 05/15/32 | | | | 41 | | | $ | 40,852 | |
Series 2022-C, Class E, 144A | | | 11.366 | | | | 12/15/32 | | | | 79 | | | | 80,760 | |
Santander Drive Auto Receivables Trust, | | | | | | | | | | | | | | | | |
Series 2020-03, Class D | | | 1.640 | | | | 11/16/26 | | | | 35 | | | | 35,057 | |
Series 2020-04, Class D | | | 1.480 | | | | 01/15/27 | | | | 61 | | | | 60,601 | |
Series 2021-01, Class D | | | 1.130 | | | | 11/16/26 | | | | 235 | | | | 233,146 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 6,282,225 | |
| | | | | | | | | | | | | | | | |
| | | | |
Collateralized Loan Obligations 3.3% | | | | | | | | | | | | | | | | |
Balboa Bay Loan Funding Ltd. (Cayman Islands),
Series 2020-01A, Class AR, 144A, 3 Month SOFR + 1.382% (Cap N/A, Floor 1.120%) | | | 6.664(c) | | | | 01/20/32 | | | | 1,485 | | | | 1,486,166 | |
Barings CLO Ltd. (Cayman Islands),
Series LP-02A, Class A, 144A, 3 Month SOFR + 1.362% (Cap N/A, Floor 1.100%) | | | 6.644(c) | | | | 01/20/34 | | | | 2,100 | | | | 2,115,109 | |
Battalion CLO Ltd. (Cayman Islands),
Series 2018-12A, Class A1, 144A, 3 Month SOFR + 1.332% (Cap N/A, Floor 1.070%) | | | 6.433(c) | | | | 05/17/31 | | | | 772 | | | | 774,820 | |
Carlyle CLO Ltd. (Cayman Islands),
Series C17A, Class A1AR, 144A, 3 Month SOFR + 1.292% (Cap N/A, Floor 0.000%) | | | 6.547(c) | | | | 04/30/31 | | | | 631 | | | | 631,562 | |
CVC Cordatus Loan Fund DAC (Ireland),
Series 14A, Class A1R, 144A, 3 Month EURIBOR + 0.850% (Cap N/A, Floor 0.850%) | | | 4.388(c) | | | | 05/22/32 | | | EUR | 1,473 | | | | 1,636,319 | |
Series 14A, Class A2R, 144A | | | 1.250 | | | | 05/22/32 | | | EUR | 1,473 | | | | 1,571,512 | |
Elmwood CLO Ltd. (Cayman Islands),
Series 2019-02A, Class AR, 144A, 3 Month SOFR + 1.412% (Cap N/A, Floor 1.412%) | | | 6.694(c) | | | | 04/20/34 | | | | 1,350 | | | | 1,352,963 | |
Monument CLO DAC (Ireland),
Series 01A, Class A, 144A, 3 Month EURIBOR + 1.590% (Cap N/A, Floor 1.590%) | | | 5.332(c) | | | | 05/15/37 | | | EUR | 2,500 | | | | 2,794,985 | |
OZLM Ltd. (Cayman Islands),
Series 2018-20A, Class A1, 144A, 3 Month SOFR + 1.312% (Cap N/A, Floor 1.050%) | | | 6.594(c) | | | | 04/20/31 | | | | 659 | | | | 659,731 | |
Park Avenue Institutional Advisers CLO Ltd. (Cayman Islands),
Series 2019-02A, Class A1R, 144A, 3 Month SOFR + 1.442% (Cap N/A, Floor 1.180%) | | | 6.743(c) | | | | 10/15/34 | | | | 3,500 | | | | 3,501,816 | |
See Notes to Financial Statements.
28
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount
(000)# | | | Value | |
| | | | |
ASSET-BACKED SECURITIES (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Collateralized Loan Obligations (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
Sixth Street CLO Ltd. (Cayman Islands),
Series 2021-19A, Class A, 144A, 3 Month SOFR + 1.362% (Cap N/A, Floor 1.100%) | | | 6.644%(c) | | | | 07/20/34 | | | | 4,000 | | | $ | 4,000,848 | |
St. Paul’s CLO DAC (Ireland),
Series 10A, Class AR, 144A, 3 Month EURIBOR + 0.800% (Cap N/A, Floor 0.800%) | | | 4.488(c) | | | | 04/22/35 | | | EUR | 3,323 | | | | 3,671,627 | |
TCW CLO Ltd. (Cayman Islands),
Series 2019-02A, Class A1R, 144A, 3 Month SOFR + 1.280% (Cap N/A, Floor 1.280%) | | | 6.562(c) | | | | 10/20/32 | | | | 3,500 | | | | 3,502,275 | |
THL Credit Wind River CLO Ltd. (Cayman Islands),
Series 2020-01A, Class A1R, 144A, 3 Month SOFR + 1.570% (Cap N/A, Floor 1.570%) | | | 6.852(c) | | | | 07/20/37 | | | | 2,000 | | | | 2,010,218 | |
Toro European CLO DAC (Ireland),
Series 09A, Class A, 144A, 3 Month EURIBOR + 1.650% (Cap N/A, Floor 1.650%) | | | 5.544(c) | | | | 04/15/37 | | | EUR | 1,750 | | | | 1,961,197 | |
Wellfleet CLO Ltd. (Cayman Islands),
Series 2018-02A, Class A1, 144A, 3 Month SOFR + 1.462% (Cap N/A, Floor 1.200%) | | | 6.744(c) | | | | 10/20/31 | | | | 326 | | | | 326,496 | |
Series 2020-01A, Class A1AR, 144A, 3 Month SOFR + 1.200% (Cap N/A, Floor 1.200%) | | | 6.501(c) | | | | 04/15/33 | | | | 2,500 | | | | 2,501,263 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 34,498,907 | |
| | | | | | | | | | | | | | | | |
| | | | |
Consumer Loans 0.3% | | | | | | | | | | | | | | | | |
| | | | |
Fairstone Financial Issuance Trust (Canada),
Series 2020-01A, Class A, 144A | | | 2.509 | | | | 10/20/39 | | | CAD | 68 | | | | 49,782 | |
GreenSky Home Improvement Trust,
Series 2024-01, Class A4, 144A | | | 5.670 | | | | 06/25/59 | | | | 100 | | | | 101,499 | |
Lending Funding Trust,
Series 2020-02A, Class A, 144A | | | 2.320 | | | | 04/21/31 | | | | 100 | | | | 95,841 | |
Lendmark Funding Trust,
Series 2021-01A, Class A, 144A | | | 1.900 | | | | 11/20/31 | | | | 700 | | | | 658,855 | |
Mariner Finance Issuance Trust,
Series 2020-AA, Class A, 144A | | | 2.190 | | | | 08/21/34 | | | | 10 | | | | 10,262 | |
OneMain Financial Issuance Trust, | | | | | | | | | | | | | | | | |
Series 2020-02A, Class A, 144A | | | 1.750 | | | | 09/14/35 | | | | 400 | | | | 383,267 | |
Series 2022-02A, Class D, 144A | | | 6.550 | | | | 10/14/34 | | | | 800 | | | | 809,383 | |
Series 2023-02A, Class C, 144A | | | 6.740 | | | | 09/15/36 | | | | 200 | | | | 209,897 | |
Series 2023-02A, Class D, 144A | | | 7.520 | | | | 09/15/36 | | | | 200 | | | | 210,819 | |
See Notes to Financial Statements.
PGIM Balanced Fund 29
Schedule of Investments (continued)
as of September 30, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal Amount (000)# | | | Value | |
| | | | |
ASSET-BACKED SECURITIES (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Consumer Loans (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
Regional Management Issuance Trust, Series 2022-01, Class A, 144A | | | 3.070% | | | | 03/15/32 | | | | 400 | | | $ | 393,202 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 2,922,807 | |
| | | | | | | | | | | | | | | | |
| | | | |
Equipment 0.0% | | | | | | | | | | | | | | | | |
| | | | |
MMAF Equipment Finance LLC, Series 2017-B, Class A5, 144A | | | 2.720 | | | | 06/15/40 | | | | 94 | | | | 93,404 | |
| | | | | | | | | | | | | | | | |
| | | | |
Home Equity Loans 0.2% | | | | | | | | | | | | | | | | |
| | | | |
BRAVO Residential Funding Trust, Series 2024-CES01, Class A1A, 144A | | | 6.377 | | | | 04/25/54 | | | | 463 | | | | 470,145 | |
JPMorgan Mortgage Trust, Series 2023-HE02, Class A1, 144A, 30 Day Average SOFR + 1.700% (Cap N/A, Floor 0.000%) | | | 7.045(c) | | | | 03/25/54 | | | | 249 | | | | 251,336 | |
Towd Point HE Trust, Series 2023-01, Class A1A, 144A | | | 6.875 | | | | 02/25/63 | | | | 89 | | | | 88,678 | |
Towd Point Mortgage Trust, | | | | | | | | | | | | | | | | |
Series 2023-CES02, Class A1A, 144A | | | 7.294(cc) | | | | 10/25/63 | | | | 247 | | | | 253,131 | |
Series 2024-CES01, Class A1A, 144A | | | 5.848(cc) | | | | 01/25/64 | | | | 87 | | | | 88,246 | |
Series 2024-CES02, Class A1A, 144A | | | 6.125(cc) | | | | 02/25/64 | | | | 89 | | | | 89,466 | |
Series 2024-CES03, Class A1, 144A | | | 6.290(cc) | | | | 05/25/64 | | | | 285 | | | | 288,349 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 1,529,351 | |
| | | | | | | | | | | | | | | | |
| | | | |
Other 0.1% | | | | | | | | | | | | | | | | |
| | | | |
Invitation Homes Trust, Series 2024-SFR01, Class C, 144A | | | 4.250 | | | | 09/17/41 | | | | 700 | | | | 671,590 | |
PMT Issuer Trust - FMSR, Series 2024-FT01, Class A, 144A, 1 Month SOFR + 2.750% (Cap N/A, Floor 2.750%) | | | 8.028(c) | | | | 12/25/27 | | | | 600 | | | | 602,686 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 1,274,276 | |
| | | | | | | | | | | | | | | | |
| | | | |
Student Loans 0.1% | | | | | | | | | | | | | | | | |
| | | | |
Laurel Road Prime Student Loan Trust, Series 2019-A, Class A2FX, 144A | | | 2.730 | | | | 10/25/48 | | | | 18 | | | | 18,085 | |
Navient Private Education Refi Loan Trust, Series 2019-CA, Class A2, 144A | | | 3.130 | | | | 02/15/68 | | | | 64 | | | | 62,335 | |
SoFi Professional Loan Program LLC, Series 2019-B, Class A2FX, 144A | | | 3.090 | | | | 08/17/48 | | | | 91 | | | | 89,257 | |
See Notes to Financial Statements.
30
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | Value | |
| | | | |
ASSET-BACKED SECURITIES (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Student Loans (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
SoFi Professional Loan Program LLC, (cont’d.) | | | | | | | | | | | | | | | | |
Series 2019-C, Class A2FX, 144A | | | 2.370% | | | | 11/16/48 | | | | 184 | | | $ | 176,369 | |
SoFi Professional Loan Program Trust, | | | | | | | | | | | | | | | | |
Series 2018-B, Class A2FX, 144A | | | 3.340 | | | | 08/25/47 | | | | 37 | | | | 36,473 | |
Series 2020-A, Class A2FX, 144A | | | 2.540 | | | | 05/15/46 | | | | 252 | | | | 240,136 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 622,655 | |
| | | | | | | | | | | | | | | | |
| | | | |
TOTAL ASSET-BACKED SECURITIES (cost $47,279,757) | | | | | | | | | | | | | | | 47,223,625 | |
| | | | | | | | | | | | | | | | |
| | | | |
COMMERCIAL MORTGAGE-BACKED SECURITIES 5.7% | | | | | | | | | | | | | | | | |
| | | | |
BANK, | | | | | | | | | | | | | | | | |
Series 2017-BNK04, Class A3 | | | 3.362 | | | | 05/15/50 | | | | 995 | | | | 969,935 | |
Series 2020-BN26, Class A3 | | | 2.155 | | | | 03/15/63 | | | | 1,800 | | | | 1,592,782 | |
Bank of America Merrill Lynch Commercial Mortgage Trust, | | | | | | | | | | | | | | | | |
Series 2017-BNK03, Class XB, IO | | | 0.733(cc) | | | | 02/15/50 | | | | 40,575 | | | | 505,913 | |
BANK5, | | | | | | | | | | | | | | | | |
Series 2024-05YR8, Class A3 | | | 5.884 | | | | 08/15/57 | | | | 1,800 | | | | 1,899,762 | |
Barclays Commercial Mortgage Securities Trust, | | | | | | | | | | | | | | | | |
Series 2018-C02, Class A4 | | | 4.047 | | | | 12/15/51 | | | | 1,351 | | | | 1,328,248 | |
Series 2020-C07, Class XB, IO | | | 1.098(cc) | | | | 04/15/53 | | | | 4,900 | | | | 241,324 | |
Series 2023-05C23, Class A3 | | | 6.675(cc) | | | | 12/15/56 | | | | 2,500 | | | | 2,694,195 | |
Series 2024-05C27, Class A3 | | | 6.014 | | | | 07/15/57 | | | | 800 | | | | 846,628 | |
Benchmark Mortgage Trust, | | | | | | | | | | | | | | | | |
Series 2018-B02, Class A4 | | | 3.615 | | | | 02/15/51 | | | | 1,400 | | | | 1,358,223 | |
Series 2019-B13, Class A3 | | | 2.701 | | | | 08/15/57 | | | | 1,800 | | | | 1,659,050 | |
Series 2019-B15, Class A2 | | | 2.914 | | | | 12/15/72 | | | | 1,000 | | | | 965,372 | |
Series 2020-B17, Class A4 | | | 2.042 | | | | 03/15/53 | | | | 650 | | | | 561,313 | |
Series 2023-V02, Class A3 | | | 5.812(cc) | | | | 05/15/55 | | | | 1,400 | | | | 1,455,486 | |
Series 2024-V08, Class A3 | | | 6.189(cc) | | | | 07/15/57 | | | | 1,400 | | | | 1,493,361 | |
BMO Mortgage Trust, | | | | | | | | | | | | | | | | |
Series 2023-C07, Class A2 | | | 6.770 | | | | 12/15/56 | | | | 1,800 | | | | 1,935,562 | |
Series 2024-05C05, Class A3 | | | 5.857 | | | | 02/15/57 | | | | 800 | | | | 842,412 | |
BX Commercial Mortgage Trust, | | | | | | | | | | | | | | | | |
Series 2021-ACNT, Class E, 144A, 1 Month SOFR + 2.311% (Cap N/A, Floor 2.197%) | | | 7.408(c) | | | | 11/15/38 | | | | 939 | | | | 931,945 | |
Series 2024-AIRC, Class A, 144A, 1 Month SOFR + 1.691% (Cap N/A, Floor 1.691%) | | | 6.788(c) | | | | 08/15/39 | | | | 800 | | | | 801,000 | |
BX Trust, | | | | | | | | | | | | | | | | |
Series 2021-LGCY, Class F, 144A, 1 Month SOFR + 2.063% (Cap N/A, Floor 1.949%) | | | 7.160(c) | | | | 10/15/36 | | | | 1,350 | | | | 1,321,867 | |
See Notes to Financial Statements.
PGIM Balanced Fund 31
Schedule of Investments (continued)
as of September 30, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | Value | |
| | | | |
COMMERCIAL MORTGAGE-BACKED SECURITIES (Continued) | | | | | | | | | | | | | | | | |
| | | | |
CENT Trust, | | | | | | | | | | | | | | | | |
Series 2023-CITY, Class A, 144A, 1 Month SOFR + 2.620% (Cap N/A, Floor 2.620%) | | | 7.717%(c) | | | | 09/15/38 | | | | 750 | | | $ | 751,406 | |
| | | | |
CFK Trust, | | | | | | | | | | | | | | | | |
Series 2020-MF02, Class B, 144A | | | 2.792 | | | | 03/15/39 | | | | 1,200 | | | | 1,072,548 | |
Citigroup Commercial Mortgage Trust, | | | | | | | | | | | | | | | | |
Series 2015-GC29, Class A3 | | | 2.935 | | | | 04/10/48 | | | | 368 | | | | 364,712 | |
Series 2015-P01, Class A4 | | | 3.462 | | | | 09/15/48 | | | | 600 | | | | 594,876 | |
Series 2019-GC41, Class A4 | | | 2.620 | | | | 08/10/56 | | | | 3,600 | | | | 3,279,246 | |
Series 2020-GC46, Class A4 | | | 2.477 | | | | 02/15/53 | | | | 1,400 | | | | 1,261,929 | |
Commercial Mortgage Trust, | | | | | | | | | | | | | | | | |
Series 2015-LC21, Class A3 | | | 3.445 | | | | 07/10/48 | | | | 447 | | | | 444,214 | |
Series 2024-277P, Class A, 144A | | | 6.338 | | | | 08/10/44 | | | | 200 | | | | 209,974 | |
Series 2024-277P, Class X, IO, 144A | | | 0.894(cc) | | | | 08/10/44 | | | | 1,000 | | | | 31,291 | |
Credit Suisse Mortgage Trust, | | | | | | | | | | | | | | | | |
Series 2014-USA, Class A2, 144A | | | 3.953 | | | | 09/15/37 | | | | 1,600 | | | | 1,428,000 | |
CSAIL Commercial Mortgage Trust, | | | | | | | | | | | | | | | | |
Series 2015-C02, Class A3 | | | 3.231 | | | | 06/15/57 | | | | 397 | | | | 395,020 | |
Series 2017-C08, Class A3 | | | 3.127 | | | | 06/15/50 | | | | 723 | | | | 691,423 | |
Deutsche Bank Commercial Mortgage Trust, | | | | | | | | | | | | | | | | |
Series 2016-C01, Class A3A | | | 3.015 | | | | 05/10/49 | | | | 705 | | | | 687,425 | |
FHLMC Multifamily Structured Pass-Through Certificates, | | | | | | | | | | | | | | | | |
Series K055, Class X1, IO | | | 1.461(cc) | | | | 03/25/26 | | | | 2,042 | | | | 33,994 | |
GS Mortgage Securities Corp. Trust, | | | | | | | | | | | | | | | | |
Series 2024-RVR, Class A, 144A | | | 5.372(cc) | | | | 08/10/29 | | | | 1,100 | | | | 1,106,239 | |
GS Mortgage Securities Trust, | | | | | | | | | | | | | | | | |
Series 2021-GSA03, Class XB, IO | | | 0.746(cc) | | | | 12/15/54 | | | | 35,000 | | | | 1,375,745 | |
JPMorgan Chase Commercial Mortgage Securities Trust, | | | | | | | | | | | | | | | | |
Series 2018-AON, Class E, 144A | | | 4.767(cc) | | | | 07/05/31 | | | | 800 | | | | 325,600 | |
Series 2019-BKWD, Class A, 144A, 1 Month SOFR + 1.614% (Cap N/A, Floor 1.000%) | | | 6.711(c) | | | | 09/15/29 | | | | 272 | | | | 254,238 | |
Morgan Stanley Bank of America Merrill Lynch Trust, | | | | | | | | | | | | | | | | |
Series 2015-C23, Class A3 | | | 3.451 | | | | 07/15/50 | | | | 574 | | | | 568,570 | |
Series 2015-C25, Class A4 | | | 3.372 | | | | 10/15/48 | | | | 700 | | | | 691,998 | |
Morgan Stanley Capital I Trust, | | | | | | | | | | | | | | | | |
Series 2016-UB11, Class A3 | | | 2.531 | | | | 08/15/49 | | | | 1,269 | | | | 1,230,847 | |
Series 2019-H06, Class A3 | | | 3.158 | | | | 06/15/52 | | | | 1,250 | | | | 1,181,251 | |
Series 2020-L04, Class A2 | | | 2.449 | | | | 02/15/53 | | | | 3,600 | | | | 3,231,051 | |
MTN Commercial Mortgage Trust, | | | | | | | | | | | | | | | | |
Series 2022-LPFL, Class E, 144A, 1 Month SOFR + 4.289% (Cap N/A, Floor 4.289%) | | | 9.389(c) | | | | 03/15/39 | | | | 1,100 | | | | 1,050,598 | |
NJ Trust, | | | | | | | | | | | | | | | | |
Series 2023-GSP, Class A, 144A | | | 6.697(cc) | | | | 01/06/29 | | | | 500 | | | | 530,272 | |
See Notes to Financial Statements.
32
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | Value | |
| | | | |
COMMERCIAL MORTGAGE-BACKED SECURITIES (Continued) | | | | | | | | | | | | | | | | |
| | | | |
UBS Commercial Mortgage Trust, | | | | | | | | | | | | | | | | |
Series 2017-C05, Class A4 | | | 3.212% | | | | 11/15/50 | | | | 1,422 | | | $ | 1,374,058 | |
Series 2018-C08, Class A4 | | | 3.983 | | | | 02/15/51 | | | | 1,650 | | | | 1,612,455 | |
Series 2018-C09, Class A3 | | | 3.854 | | | | 03/15/51 | | | | 350 | | | | 342,611 | |
Series 2018-C14, Class A3 | | | 4.180 | | | | 12/15/51 | | | | 735 | | | | 723,024 | |
| | | | |
Wells Fargo Commercial Mortgage Trust, | | | | | | | | | | | | | | | | |
Series 2015-NXS02, Class A4 | | | 3.498 | | | | 07/15/58 | | | | 800 | | | | 791,805 | |
Series 2016-C33, Class A3 | | | 3.162 | | | | 03/15/59 | | | | 878 | | | | 863,279 | |
Series 2016-C34, Class A3 | | | 2.834 | | | | 06/15/49 | | | | 800 | | | | 777,393 | |
Series 2016-C35, Class A3 | | | 2.674 | | | | 07/15/48 | | | | 1,015 | | | | 987,797 | |
Series 2016-NXS06, Class A3 | | | 2.642 | | | | 11/15/49 | | | | 1,500 | | | | 1,455,532 | |
Series 2017-C38, Class A4 | | | 3.190 | | | | 07/15/50 | | | | 624 | | | | 603,840 | |
Series 2018-C46, Class A3 | | | 3.888 | | | | 08/15/51 | | | | 1,050 | | | | 1,020,455 | |
Series 2018-C48, Class A4 | | | 4.037 | | | | 01/15/52 | | | | 1,622 | | | | 1,598,618 | |
Series 2019-C52, Class A3 | | | 2.631 | | | | 08/15/52 | | | | 205 | | | | 199,936 | |
| | | | | | | | | | | | | | | | |
| | | | |
TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES (cost $61,523,727) | | | | | | | | | | | | | | | 58,547,648 | |
| | | | | | | | | | | | | | | | |
| | | | |
CORPORATE BONDS 15.3% | | | | | | | | | | | | | | | | |
| | | | |
Aerospace & Defense 0.4% | | | | | | | | | | | | | | | | |
| | | | |
Boeing Co. (The), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 2.196 | | | | 02/04/26 | | | | 1,860 | | | | 1,792,156 | |
Sr. Unsec’d. Notes | | | 3.625 | | | | 03/01/48 | | | | 555 | | | | 383,617 | |
Sr. Unsec’d. Notes | | | 5.705 | | | | 05/01/40 | | | | 175 | | | | 170,907 | |
Sr. Unsec’d. Notes | | | 5.930 | | | | 05/01/60 | | | | 280 | | | | 268,742 | |
Sr. Unsec’d. Notes, 144A | | | 6.528 | | | | 05/01/34 | | | | 125 | | | | 134,108 | |
| | | | |
Bombardier, Inc. (Canada), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 6.000 | | | | 02/15/28 | | | | 475 | | | | 478,235 | |
Sr. Unsec’d. Notes, 144A | | | 7.125 | | | | 06/15/26 | | | | 50 | | | | 50,735 | |
Sr. Unsec’d. Notes, 144A | | | 7.500 | | | | 02/01/29 | | | | 55 | | | | 58,046 | |
Sr. Unsec’d. Notes, 144A | | | 7.875 | | | | 04/15/27 | | | | 208 | | | | 208,260 | |
| | | | |
RTX Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 4.125 | | | | 11/16/28 | | | | 235 | | | | 234,284 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 3,779,090 | |
| | | | |
Agriculture 0.4% | | | | | | | | | | | | | | | | |
| | | | |
BAT Capital Corp. (United Kingdom), | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 3.557 | | | | 08/15/27 | | | | 108 | | | | 105,753 | |
Gtd. Notes | | | 6.343 | | | | 08/02/30 | | | | 100 | | | | 108,063 | |
| | | | |
BAT International Finance PLC (United Kingdom), | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.448 | | | | 03/16/28 | | | | 1,410 | | | | 1,408,811 | |
See Notes to Financial Statements.
PGIM Balanced Fund 33
Schedule of Investments (continued)
as of September 30, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Agriculture (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
BAT International Finance PLC (United Kingdom), (cont’d.) | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 5.931% | | | | 02/02/29 | | | | 30 | | | $ | 31,615 | |
| | | | |
Philip Morris International, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes(a) | | | 4.750 | | | | 02/12/27 | | | | 750 | | | | 761,762 | |
Sr. Unsec’d. Notes | | | 5.125 | | | | 02/15/30 | | | | 695 | | | | 720,769 | |
Sr. Unsec’d. Notes | | | 5.500 | | | | 09/07/30 | | | | 450 | | | | 476,377 | |
| | | | |
Vector Group Ltd., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 5.750 | | | | 02/01/29 | | | | 400 | | | | 405,819 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 4,018,969 | |
| | | | |
Airlines 0.1% | | | | | | | | | | | | | | | | |
| | | | |
American Airlines 2016-1 Class AA Pass-Through Trust, | | | | | | | | | | | | | | | | |
Pass-Through Certificates | | | 3.575 | | | | 07/15/29 | | | | 130 | | | | 125,417 | |
American Airlines, Inc./AAdvantage Loyalty IP Ltd., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 5.750 | | | | 04/20/29 | | | | 150 | | | | 149,273 | |
Continental Airlines 2012-2 Class A Pass-Through Trust, | | | | | | | | | | | | | | | | |
Pass-Through Certificates | | | 4.000 | | | | 04/29/26 | | | | 55 | | | | 54,895 | |
Southwest Airlines Co., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 5.125 | | | | 06/15/27 | | | | 260 | | | | 264,466 | |
United Airlines 2014-1 Class A Pass-Through Trust, | | | | | | | | | | | | | | | | |
Pass-Through Certificates | | | 4.000 | | | | 10/11/27 | | | | 46 | | | | 45,055 | |
United Airlines, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 4.375 | | | | 04/15/26 | | | | 260 | | | | 256,083 | |
Sr. Sec’d. Notes, 144A | | | 4.625 | | | | 04/15/29 | | | | 60 | | | | 57,971 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 953,160 | |
| | | | |
Auto Manufacturers 0.3% | | | | | | | | | | | | | | | | |
| | | | |
Ford Motor Co., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 4.750 | | | | 01/15/43 | | | | 320 | | | | 265,168 | |
Ford Motor Credit Co. LLC, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 2.900 | | | | 02/16/28 | | | | 425 | | | | 394,251 | |
Sr. Unsec’d. Notes | | | 5.125 | | | | 11/05/26 | | | | 285 | | | | 286,265 | |
Sr. Unsec’d. Notes | | | 7.350 | | | | 03/06/30 | | | | 385 | | | | 416,585 | |
General Motors Co., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 6.600 | | | | 04/01/36 | | | | 80 | | | | 86,236 | |
General Motors Financial Co., Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 2.400 | | | | 10/15/28 | | | | 2,305 | | | | 2,107,776 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 3,556,281 | |
See Notes to Financial Statements.
34
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Auto Parts & Equipment 0.2% | | | | | | | | | | | | | | | | |
| | | | |
Aptiv PLC/Aptiv Global Financing DAC, | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.650% | | | | 09/13/29 | | | | 745 | | | $ | 740,839 | |
Dana, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 5.375 | | | | 11/15/27 | | | | 250 | | | | 248,333 | |
Phinia, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 6.750 | | | | 04/15/29 | | | | 75 | | | | 77,562 | |
Tenneco, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 8.000 | | | | 11/17/28 | | | | 650 | | | | 600,592 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 1,667,326 | |
| | | | |
Banks 3.7% | | | | | | | | | | | | | | | | |
| | | | |
Banco do Brasil SA (Brazil), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 4.875 | | | | 01/11/29 | | | | 200 | | | | 197,730 | |
Banco Santander SA (Spain), | | | | | | | | | | | | | | | | |
Sr. Non-Preferred Notes | | | 1.849 | | | | 03/25/26 | | | | 200 | | | | 191,925 | |
Bank of America Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 2.299(ff) | | | | 07/21/32 | | | | 665 | | | | 575,603 | |
Sr. Unsec’d. Notes | | | 5.288(ff) | | | | 04/25/34 | | | | 415 | | | | 430,894 | |
Sr. Unsec’d. Notes, GMTN | | | 3.593(ff) | | | | 07/21/28 | | | | 160 | | | | 157,035 | |
Sr. Unsec’d. Notes, MTN | | | 3.194(ff) | | | | 07/23/30 | | | | 215 | | | | 203,559 | |
Sr. Unsec’d. Notes, MTN | | | 3.824(ff) | | | | 01/20/28 | | | | 1,835 | | | | 1,814,148 | |
Sr. Unsec’d. Notes, MTN | | | 3.974(ff) | | | | 02/07/30 | | | | 115 | | | | 112,950 | |
Sr. Unsec’d. Notes, MTN | | | 4.271(ff) | | | | 07/23/29 | | | | 350 | | | | 348,967 | |
Sr. Unsec’d. Notes, Series N | | | 2.651(ff) | | | | 03/11/32 | | | | 2,290 | | | | 2,043,726 | |
Barclays PLC (United Kingdom), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 2.645(ff) | | | | 06/24/31 | | | | 1,075 | | | | 958,557 | |
Sr. Unsec’d. Notes | | | 3.650 | | | | 03/16/25 | | | | 200 | | | | 198,831 | |
Sr. Unsec’d. Notes | | | 5.674(ff) | | | | 03/12/28 | | | | 210 | | | | 215,558 | |
Sr. Unsec’d. Notes, MTN | | | 4.972(ff) | | | | 05/16/29 | | | | 400 | | | | 404,068 | |
BNP Paribas SA (France), | | | | | | | | | | | | | | | | |
Sr. Non-Preferred Notes, 144A | | | 1.904(ff) | | | | 09/30/28 | | | | 750 | | | | 695,640 | |
Sr. Non-Preferred Notes, 144A | | | 2.871(ff) | | | | 04/19/32 | | | | 685 | | | | 609,109 | |
Cassa Depositi e Prestiti SpA (Italy), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 5.750 | | | | 05/05/26 | | | | 200 | | | | 202,490 | |
Sr. Unsec’d. Notes, 144A | | | 5.875 | | | | 04/30/29 | | | | 400 | | | | 419,082 | |
Citigroup, Inc., | | | | | | | | | | | | | | | | |
Jr. Sub. Notes, Series V | | | 4.700(ff) | | | | 01/30/25(oo) | | | | 1,290 | | | | 1,282,582 | |
Sr. Unsec’d. Notes | | | 2.561(ff) | | | | 05/01/32 | | | | 185 | | | | 162,645 | |
Sr. Unsec’d. Notes | | | 2.572(ff) | | | | 06/03/31 | | | | 880 | | | | 791,186 | |
Sr. Unsec’d. Notes | | | 3.057(ff) | | | | 01/25/33 | | | | 280 | | | | 250,042 | |
Sr. Unsec’d. Notes | | | 3.668(ff) | | | | 07/24/28 | | | | 290 | | | | 284,833 | |
See Notes to Financial Statements.
PGIM Balanced Fund 35
Schedule of Investments (continued)
as of September 30, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Banks (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
Citigroup, Inc., (cont’d.) | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 3.700% | | | | 01/12/26 | | | | 200 | | | $ | 198,692 | |
Sr. Unsec’d. Notes | | | 3.887(ff) | | | | 01/10/28 | | | | 1,500 | | | | 1,484,798 | |
Sub. Notes | | | 4.400 | | | | 06/10/25 | | | | 767 | | | | 763,805 | |
Sub. Notes | | | 4.450 | | | | 09/29/27 | | | | 195 | | | | 195,158 | |
Sub. Notes | | | 4.750 | | | | 05/18/46 | | | | 55 | | | | 51,585 | |
Comerica, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 5.982(ff) | | | | 01/30/30 | | | | 860 | | | | 886,368 | |
Deutsche Bank AG (Germany), | | | | | | | | | | | | | | | | |
Sr. Non-Preferred Notes | | | 3.961(ff) | | | | 11/26/25 | | | | 245 | | | | 244,526 | |
Sub. Notes | | | 7.079(ff) | | | | 02/10/34 | | | | 250 | | | | 268,965 | |
Discover Bank, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 4.250 | | | | 03/13/26 | | | | 315 | | | | 313,496 | |
Freedom Mortgage Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 12.000 | | | | 10/01/28 | | | | 50 | | | | 54,655 | |
Goldman Sachs Group, Inc. (The), | | | | | | | | | | | | | | | | |
Jr. Sub. Notes, Series U | | | 3.650(ff) | | | | 08/10/26(oo) | | | | 290 | | | | 275,144 | |
Jr. Sub. Notes, Series V | | | 4.125(ff) | | | | 11/10/26(oo) | | | | 395 | | | | 378,092 | |
Sr. Unsec’d. Notes | | | 2.383(ff) | | | | 07/21/32 | | | | 465 | | | | 403,158 | |
Sr. Unsec’d. Notes | | | 2.615(ff) | | | | 04/22/32 | | | | 1,405 | | | | 1,240,846 | |
Sr. Unsec’d. Notes | | | 3.750 | | | | 02/25/26 | | | | 50 | | | | 49,675 | |
Sr. Unsec’d. Notes | | | 3.814(ff) | | | | 04/23/29 | | | | 190 | | | | 186,263 | |
Sr. Unsec’d. Notes | | | 3.850 | | | | 01/26/27 | | | | 410 | | | | 406,245 | |
Sr. Unsec’d. Notes | | | 4.223(ff) | | | | 05/01/29 | | | | 95 | | | | 94,434 | |
Sub. Notes | | | 6.750 | | | | 10/01/37 | | | | 275 | | | | 316,597 | |
JPMorgan Chase & Co., | | | | | | | | | | | | | | | | |
Jr. Sub. Notes, Series HH | | | 4.600(ff) | | | | 02/01/25(oo) | | | | 1,290 | | | | 1,282,123 | |
Jr. Sub. Notes, Series NN | | | 6.875(ff) | | | | 06/01/29(oo) | | | | 225 | | | | 241,227 | |
Sr. Unsec’d. Notes | | | 1.578(ff) | | | | 04/22/27 | | | | 1,005 | | | | 963,234 | |
Sr. Unsec’d. Notes | | | 2.580(ff) | | | | 04/22/32 | | | | 375 | | | | 334,397 | |
Sr. Unsec’d. Notes | | | 2.947(ff) | | | | 02/24/28 | | | | 110 | | | | 106,682 | |
Sr. Unsec’d. Notes | | | 2.963(ff) | | | | 01/25/33 | | | | 495 | | | | 445,101 | |
Sr. Unsec’d. Notes | | | 3.702(ff) | | | | 05/06/30 | | | | 145 | | | | 141,044 | |
Sr. Unsec’d. Notes | | | 3.782(ff) | | | | 02/01/28 | | | | 1,591 | | | | 1,573,591 | |
Sr. Unsec’d. Notes | | | 4.005(ff) | | | | 04/23/29 | | | | 796 | | | | 787,406 | |
Sr. Unsec’d. Notes | | | 4.323(ff) | | | | 04/26/28 | | | | 85 | | | | 85,172 | |
Sr. Unsec’d. Notes | | | 4.452(ff) | | | | 12/05/29 | | | | 250 | | | | 251,115 | |
Sr. Unsec’d. Notes | | | 5.299(ff) | | | | 07/24/29 | | | | 460 | | | | 475,879 | |
KeyCorp, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 6.401(ff) | | | | 03/06/35 | | | | 180 | | | | 195,598 | |
Morgan Stanley, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 5.449(ff) | | | | 07/20/29 | | | | 230 | | | | 238,869 | |
See Notes to Financial Statements.
36
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Banks (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
Morgan Stanley, (cont’d.) | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, GMTN | | | 2.239%(ff) | | | | 07/21/32 | | | | 1,005 | | | $ | 864,714 | |
Sr. Unsec’d. Notes, GMTN | | | 3.772(ff) | | | | 01/24/29 | | | | 1,173 | | | | 1,153,139 | |
Sr. Unsec’d. Notes, GMTN | | | 3.875 | | | | 01/27/26 | | | | 370 | | | | 368,395 | |
Sr. Unsec’d. Notes, GMTN | | | 4.431(ff) | | | | 01/23/30 | | | | 240 | | | | 240,552 | |
Sr. Unsec’d. Notes, MTN | | | 2.511(ff) | | | | 10/20/32 | | | | 215 | | | | 187,716 | |
Sr. Unsec’d. Notes, MTN | | | 2.943(ff) | | | | 01/21/33 | | | | 485 | | | | 433,219 | |
Sr. Unsec’d. Notes, MTN | | | 3.591(cc) | | | | 07/22/28 | | | | 1,536 | | | | 1,504,569 | |
Societe Generale SA (France), | | | | | | | | | | | | | | | | |
Sr. Non-Preferred Notes, 144A | | | 1.488(ff) | | | | 12/14/26 | | | | 1,000 | | | | 957,935 | |
Sumitomo Mitsui Trust Bank Ltd. (Japan), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A, MTN | | | 5.650 | | | | 03/09/26 | | | | 250 | | | | 254,293 | |
UBS Group AG (Switzerland), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 3.091(ff) | | | | 05/14/32 | | | | 495 | | | | 446,234 | |
UniCredit SpA (Italy), | | | | | | | | | | | | | | | | |
Sr. Preferred Notes, 144A | | | 3.127(ff) | | | | 06/03/32 | | | | 405 | | | | 358,863 | |
Wells Fargo & Co., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 6.303(ff) | | | | 10/23/29 | | | | 715 | | | | 764,556 | |
Sr. Unsec’d. Notes, MTN | | | 2.393(ff) | | | | 06/02/28 | | | | 2,500 | | | | 2,377,002 | |
Sr. Unsec’d. Notes, MTN | | | 2.572(ff) | | | | 02/11/31 | | | | 1,025 | | | | 930,854 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 38,327,141 | |
| | | | |
Beverages 0.1% | | | | | | | | | | | | | | | | |
| | | | |
Anheuser-Busch Cos. LLC/Anheuser-Busch InBev Worldwide, Inc. (Belgium), | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.700 | | | | 02/01/36 | | | | 150 | | | | 150,487 | |
Gtd. Notes | | | 4.900 | | | | 02/01/46 | | | | 435 | | | | 427,025 | |
Bacardi Ltd. (Bermuda), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.450 | | | | 05/15/25 | | | | 890 | | | | 885,301 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 1,462,813 | |
| | | | |
Biotechnology 0.0% | | | | | | | | | | | | | | | | |
| | | | |
Amgen, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 5.600 | | | | 03/02/43 | | | | 495 | | | | 518,811 | |
| | | | |
Building Materials 0.1% | | | | | | | | | | | | | | | | |
| | | | |
Griffon Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 5.750 | | | | 03/01/28 | | | | 425 | | | | 419,167 | |
See Notes to Financial Statements.
PGIM Balanced Fund 37
Schedule of Investments (continued)
as of September 30, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Building Materials (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
JELD-WEN, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.875% | | | | 12/15/27 | | | | 200 | | | $ | 195,788 | |
Standard Industries, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 4.375 | | | | 07/15/30 | | | | 300 | | | | 283,568 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 898,523 | |
| | | | |
Chemicals 0.3% | | | | | | | | | | | | | | | | |
| | | | |
Ashland, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 3.375 | | | | 09/01/31 | | | | 225 | | | | 199,476 | |
Braskem Netherlands Finance BV (Brazil), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 8.500 | | | | 01/12/31 | | | | 204 | | | | 216,434 | |
CF Industries, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 5.375 | | | | 03/15/44 | | | | 150 | | | | 147,464 | |
Dow Chemical Co. (The), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 4.375 | | | | 11/15/42 | | | | 20 | | | | 17,657 | |
Sr. Unsec’d. Notes | | | 9.400 | | | | 05/15/39 | | | | 31 | | | | 43,231 | |
FMC Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 5.650 | | | | 05/18/33 | | | | 1,000 | | | | 1,033,785 | |
Huntsman International LLC, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 4.500 | | | | 05/01/29 | | | | 825 | | | | 810,455 | |
Nutrien Ltd. (Canada), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 4.900 | | | | 03/27/28 | | | | 245 | | | | 250,286 | |
OCP SA (Morocco), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 6.750 | | | | 05/02/34 | | | | 413 | | | | 442,620 | |
Sasol Financing USA LLC (South Africa), | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.375 | | | | 09/18/26 | | | | 200 | | | | 193,750 | |
Gtd. Notes | | | 6.500 | | | | 09/27/28 | | | | 200 | | | | 198,250 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 3,553,408 | |
| | | | |
Commercial Services 0.2% | | | | | | | | | | | | | | | | |
| | | | |
Adtalem Global Education, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 5.500 | | | | 03/01/28 | | | | 132 | | | | 130,714 | |
DP World Ltd. (United Arab Emirates), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 2.375 | | | | 09/25/26 | | | EUR | 185 | | | | 201,878 | |
ERAC USA Finance LLC, | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 7.000 | | | | 10/15/37 | | | | 20 | | | | 23,825 | |
Johns Hopkins University, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, Series A | | | 2.813 | | | | 01/01/60 | | | | 100 | | | | 67,137 | |
President & Fellows of Harvard College, | | | | | | | | | | | | | | | | |
Unsec’d. Notes | | | 3.300 | | | | 07/15/56 | | | | 270 | | | | 209,291 | |
See Notes to Financial Statements.
38
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Commercial Services (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
RELX Capital, Inc. (United Kingdom), | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.750% | | | | 05/20/32 | | | | 210 | | | $ | 211,992 | |
Service Corp. International, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 5.750 | | | | 10/15/32 | | | | 80 | | | | 80,517 | |
Trustees of Boston College, | | | | | | | | | | | | | | | | |
Unsec’d. Notes | | | 3.129 | | | | 07/01/52 | | | | 279 | | | | 208,976 | |
Trustees of the University of Pennsylvania (The), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 3.610 | | | | 02/15/2119 | | | | 55 | | | | 39,767 | |
United Rentals North America, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 3.750 | | | | 01/15/32 | | | | 200 | | | | 182,513 | |
Gtd. Notes | | | 3.875 | | | | 02/15/31 | | | | 62 | | | | 57,665 | |
Yale University, | | | | | | | | | | | | | | | | |
Unsec’d. Notes, Series 2020 | | | 1.482 | | | | 04/15/30 | | | | 595 | | | | 520,546 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 1,934,821 | |
| | | | |
Computers 0.0% | | | | | | | | | | | | | | | | |
| | | | |
McAfee Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 7.375 | | | | 02/15/30 | | | | 200 | | | | 195,141 | |
NCR Atleos Corp., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 9.500 | | | | 04/01/29 | | | | 131 | | | | 144,220 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 339,361 | |
| | | | |
Distribution/Wholesale 0.0% | | | | | | | | | | | | | | | | |
| | | | |
H&E Equipment Services, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 3.875 | | | | 12/15/28 | | | | 400 | | | | 375,349 | |
| | | | |
Diversified Financial Services 0.2% | | | | | | | | | | | | | | | | |
| | | | |
Cantor Fitzgerald LP, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 7.200 | | | | 12/12/28 | | | | 320 | | | | 339,466 | |
Nationstar Mortgage Holdings, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.500 | | | | 08/15/28 | | | | 120 | | | | 118,885 | |
Gtd. Notes, 144A | | | 6.000 | | | | 01/15/27 | | | | 400 | | | | 399,950 | |
OneMain Finance Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 3.875 | | | | 09/15/28 | | | | 350 | | | | 324,625 | |
PennyMac Financial Services, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.250 | | | | 02/15/29 | | | | 325 | | | | 310,233 | |
Power Finance Corp. Ltd. (India), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A, MTN | | | 6.150 | | | | 12/06/28 | | | | 200 | | | | 210,375 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 1,703,534 | |
See Notes to Financial Statements.
PGIM Balanced Fund 39
Schedule of Investments (continued)
as of September 30, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Electric 1.2% | | | | | | | | | | | | | | | | |
| | | | |
Algonquin Power & Utilities Corp. (Canada), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 5.365%(cc) | | | | 06/15/26 | | | | 335 | | | $ | 339,187 | |
Baltimore Gas & Electric Co., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 6.350 | | | | 10/01/36 | | | | 115 | | | | 129,777 | |
Berkshire Hathaway Energy Co., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 5.950 | | | | 05/15/37 | | | | 120 | | | | 130,757 | |
Calpine Corp., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 3.750 | | | | 03/01/31 | | | | 350 | | | | 324,061 | |
Sr. Sec’d. Notes, 144A | | | 4.500 | | | | 02/15/28 | | | | 175 | | | | 170,842 | |
Sr. Unsec’d. Notes, 144A | | | 4.625 | | | | 02/01/29 | | | | 150 | | | | 144,865 | |
Sr. Unsec’d. Notes, 144A | | | 5.000 | | | | 02/01/31 | | | | 225 | | | | 217,902 | |
CenterPoint Energy Houston Electric LLC, | | | | | | | | | | | | | | | | |
General Ref. Mortgage, Series K2 | | | 6.950 | | | | 03/15/33 | | | | 120 | | | | 137,959 | |
General Ref. Mortgage, Series Z | | | 2.400 | | | | 09/01/26 | | | | 170 | | | | 164,456 | |
Comision Federal de Electricidad (Mexico), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.688 | | | | 05/15/29 | | | | 440 | | | | 425,097 | |
Commonwealth Edison Co., | | | | | | | | | | | | | | | | |
First Mortgage, Series 123 | | | 3.750 | | | | 08/15/47 | | | | 754 | | | | 613,939 | |
DTE Electric Co., | | | | | | | | | | | | | | | | |
General Ref. Mortgage | | | 3.750 | | | | 08/15/47 | | | | 622 | | | | 506,993 | |
Duke Energy Carolinas LLC, | | | | | | | | | | | | | | | | |
First Mortgage | | | 6.050 | | | | 04/15/38 | | | | 55 | | | | 61,339 | |
Duke Energy Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 2.650 | | | | 09/01/26 | | | | 210 | | | | 204,317 | |
El Paso Electric Co., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 6.000 | | | | 05/15/35 | | | | 135 | | | | 142,370 | |
Emera US Finance LP (Canada), | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 3.550 | | | | 06/15/26 | | | | 385 | | | | 377,836 | |
Enel Finance International NV (Italy), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 2.500 | | | | 07/12/31 | | | | 1,190 | | | | 1,032,693 | |
Engie SA (France), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 5.250 | | | | 04/10/29 | | | | 500 | | | | 516,093 | |
Eskom Holdings SOC Ltd. (South Africa), | | | | | | | | | | | | | | | | |
Gov’t. Gtd. Notes, 144A, MTN | | | 6.350 | | | | 08/10/28 | | | | 200 | | | | 203,000 | |
Sr. Unsec’d. Notes, MTN | | | 8.450 | | | | 08/10/28 | | | | 500 | | | | 528,840 | |
Eversource Energy, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, Series O | | | 4.250 | | | | 04/01/29 | | | | 315 | | | | 312,757 | |
Florida Power & Light Co., | | | | | | | | | | | | | | | | |
First Mortgage | | | 5.950 | | | | 10/01/33 | | | | 60 | | | | 65,940 | |
Iberdrola International BV (Spain), | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 6.750 | | | | 09/15/33 | | | | 30 | | | | 33,053 | |
See Notes to Financial Statements.
40
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Electric (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
Interstate Power & Light Co., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 2.300% | | | | 06/01/30 | | | | 315 | | | $ | 281,147 | |
Israel Electric Corp. Ltd. (Israel), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A, GMTN | | | 4.250 | | | | 08/14/28 | | | | 235 | | | | 225,163 | |
NRG Energy, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 5.750 | | | | 01/15/28 | | | | 50 | | | | 50,367 | |
Gtd. Notes, 144A | | | 3.375 | | | | 02/15/29 | | | | 50 | | | | 46,622 | |
Gtd. Notes, 144A | | | 3.625 | | | | 02/15/31 | | | | 125 | | | | 113,338 | |
Gtd. Notes, 144A | | | 3.875 | | | | 02/15/32 | | | | 275 | | | | 250,656 | |
Gtd. Notes, 144A | | | 5.250 | | | | 06/15/29 | | | | 225 | | | | 224,261 | |
Jr. Sub. Notes, 144A | | | 10.250(ff) | | | | 03/15/28(oo) | | | | 75 | | | | 84,553 | |
Ohio Power Co., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 4.000 | | | | 06/01/49 | | | | 160 | | | | 131,165 | |
Sr. Unsec’d. Notes | | | 4.150 | | | | 04/01/48 | | | | 175 | | | | 146,074 | |
Pacific Gas & Electric Co., | | | | | | | | | | | | | | | | |
First Mortgage | | | 3.950 | | | | 12/01/47 | | | | 260 | | | | 204,982 | |
Sr. Sec’d. Notes | | | 3.250 | | | | 06/01/31 | | | | 510 | | | | 464,852 | |
Public Service Co. of Colorado, | | | | | | | | | | | | | | | | |
First Mortgage | | | 4.300 | | | | 03/15/44 | | | | 35 | | | | 30,945 | |
Public Service Electric & Gas Co., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, MTN | | | 5.800 | | | | 05/01/37 | | | | 125 | | | | 136,949 | |
San Diego Gas & Electric Co., | | | | | | | | | | | | | | | | |
First Mortgage | | | 4.150 | | | | 05/15/48 | | | | 230 | | | | 196,921 | |
Southern California Edison Co., | | | | | | | | | | | | | | | | |
First Mortgage | | | 5.300 | | | | 03/01/28 | | | | 490 | | | | 506,771 | |
Southwestern Public Service Co., | | | | | | | | | | | | | | | | |
First Mortgage | | | 3.700 | | | | 08/15/47 | | | | 250 | | | | 198,468 | |
Virginia Electric & Power Co., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, Series A | | | 2.875 | | | | 07/15/29 | | | | 1,135 | | | | 1,067,975 | |
Vistra Corp., | | | | | | | | | | | | | | | | |
Jr. Sub. Notes, 144A | | | 7.000(ff) | | | | 12/15/26(oo) | | | | 200 | | | | 204,302 | |
Jr. Sub. Notes, 144A | | | 8.000(ff) | | | | 10/15/26(oo) | | | | 650 | | | | 679,718 | |
Vistra Operations Co. LLC, | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.625 | | | | 02/15/27 | | | | 600 | | | | 599,228 | |
Xcel Energy, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 4.800 | | | | 09/15/41 | | | | 105 | | | | 96,605 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 12,725,135 | |
| | | | |
Electronics 0.1% | | | | | | | | | | | | | | | | |
| | | | |
Trimble, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes(a) | | | 4.750 | | | | 12/01/24 | | | | 1,200 | | | | 1,196,832 | |
See Notes to Financial Statements.
PGIM Balanced Fund 41
Schedule of Investments (continued)
as of September 30, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Engineering & Construction 0.2% | | | | | | | | | | | | | | | | |
| | | | |
Cellnex Finance Co. SA (Spain), | | | | | | | | | | | | | | | | |
Gtd. Notes, EMTN | | | 2.000% | | | | 02/15/33 | | | EUR | 300 | | | $ | 295,491 | |
Cellnex Telecom SA (Spain), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, EMTN | | | 1.750 | | | | 10/23/30 | | | EUR | 300 | | | | 305,092 | |
MasTec, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 5.900 | | | | 06/15/29 | | | | 85 | | | | 88,538 | |
Mexico City Airport Trust (Mexico), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes | | | 5.500 | | | | 07/31/47 | | | | 200 | | | | 171,562 | |
Sr. Sec’d. Notes, 144A | | | 4.250 | | | | 10/31/26 | | | | 200 | | | | 196,070 | |
Sr. Sec’d. Notes, 144A | | | 5.500 | | | | 10/31/46 | | | | 200 | | | | 171,624 | |
Sr. Sec’d. Notes, 144A | | | 5.500 | | | | 07/31/47 | | | | 400 | | | | 343,124 | |
TopBuild Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.125 | | | | 02/15/32 | | | | 100 | | | | 92,126 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 1,663,627 | |
| | | | |
Entertainment 0.1% | | | | | | | | | | | | | | | | |
| | | | |
Caesars Entertainment, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.625 | | | | 10/15/29 | | | | 250 | | | | 237,902 | |
Sr. Sec’d. Notes, 144A | | | 6.500 | | | | 02/15/32 | | | | 155 | | | | 160,319 | |
Sr. Sec’d. Notes, 144A | | | 7.000 | | | | 02/15/30 | | | | 125 | | | | 130,610 | |
International Game Technology PLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 6.250 | | | | 01/15/27 | | | | 200 | | | | 204,260 | |
Warnermedia Holdings, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 5.050 | | | | 03/15/42 | | | | 265 | | | | 216,457 | |
Gtd. Notes | | | 5.141 | | | | 03/15/52 | | | | 380 | | | | 292,959 | |
Wynn Resorts Finance LLC/Wynn Resorts Capital Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A(a) | | | 7.125 | | | | 02/15/31 | | | | 140 | | | | 151,544 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 1,394,051 | |
| | | | |
Environmental Control 0.0% | | | | | | | | | | | | | | | | |
| | | | |
GFL Environmental, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 6.750 | | | | 01/15/31 | | | | 80 | | | | 83,700 | |
| | | | |
Foods 0.3% | | | | | | | | | | | | | | | | |
| | | | |
B&G Foods, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 5.250 | | | | 09/15/27 | | | | 325 | | | | 311,837 | |
Bellis Acquisition Co. PLC (United Kingdom), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 8.125 | | | | 05/14/30 | | | GBP | 750 | | | | 990,906 | |
Bellis Finco PLC (United Kingdom), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 4.000 | | | | 02/16/27 | | | GBP | 500 | | | | 613,693 | |
See Notes to Financial Statements.
42
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Foods (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
JBS USA Holding Lux Sarl/JBS USA Food Co./JBS Lux Co. Sarl, | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 6.750% | | | | 03/15/34 | | | | 219 | | | $ | 242,123 | |
Kraft Heinz Foods Co., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.375 | | | | 06/01/46 | | | | 270 | | | | 238,963 | |
Lamb Weston Holdings, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.125 | | | | 01/31/30 | | | | 75 | | | | 70,352 | |
Gtd. Notes, 144A | | | 4.375 | | | | 01/31/32 | | | | 200 | | | | 185,454 | |
Post Holdings, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 6.250 | | | | 02/15/32 | | | | 80 | | | | 82,412 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 2,735,740 | |
| | | | |
Gas 0.2% | | | | | | | | | | | | | | | | |
| | | | |
AmeriGas Partners LP/AmeriGas Finance Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 5.750 | | | | 05/20/27 | | | | 350 | | | | 343,584 | |
NiSource, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 3.490 | | | | 05/15/27 | | | | 548 | | | | 538,681 | |
Sr. Unsec’d. Notes | | | 4.800 | | | | 02/15/44 | | | | 40 | | | | 37,556 | |
Piedmont Natural Gas Co., Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 3.500 | | | | 06/01/29 | | | | 740 | | | | 715,632 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 1,635,453 | |
| | | | |
Healthcare-Products 0.0% | | | | | | | | | | | | | | | | |
| | | | |
Medline Borrower LP, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 3.875 | | | | 04/01/29 | | | | 400 | | | | 378,685 | |
| | | | |
Healthcare-Services 0.6% | | | | | | | | | | | | | | | | |
| | | | |
Cigna Group (The), | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.500 | | | | 02/25/26 | | | | 631 | | | | 632,564 | |
DaVita, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.625 | | | | 06/01/30 | | | | 200 | | | | 190,350 | |
Duke University Health System, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, Series 2017 | | | 3.920 | | | | 06/01/47 | | | | 95 | | | | 81,420 | |
Elevance Health, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 4.625 | | | | 05/15/42 | | | | 45 | | | | 42,177 | |
Sr. Unsec’d. Notes(a) | | | 4.650 | | | | 01/15/43 | | | | 30 | | | | 28,219 | |
HCA, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 5.375 | | | | 02/01/25 | | | | 130 | | | | 130,039 | |
Gtd. Notes, MTN | | | 7.750 | | | | 07/15/36 | | | | 400 | | | | 474,209 | |
See Notes to Financial Statements.
PGIM Balanced Fund 43
Schedule of Investments (continued)
as of September 30, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Healthcare-Services (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
Health Care Service Corp. A Mutual Legal Reserve Co., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 2.200% | | | | 06/01/30 | | | | 360 | | | $ | 320,645 | |
Kaiser Foundation Hospitals, | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.150 | | | | 05/01/47 | | | | 140 | | | | 125,574 | |
Unsec’d. Notes, Series 2021 | | | 2.810 | | | | 06/01/41 | | | | 495 | | | | 382,030 | |
MultiCare Health System, | | | | | | | | | | | | | | | | |
Unsec’d. Notes | | | 2.803 | | | | 08/15/50 | | | | 280 | | | | 178,137 | |
MyMichigan Health, | | | | | | | | | | | | | | | | |
Sec’d. Notes, Series 2020 | | | 3.409 | | | | 06/01/50 | | | | 155 | | | | 116,637 | |
OhioHealth Corp., | | | | | | | | | | | | | | | | |
Sec’d. Notes | | | 2.297 | | | | 11/15/31 | | | | 1,155 | | | | 996,803 | |
Providence St. Joseph Health Obligated Group, | | | | | | | | | | | | | | | | |
Unsec’d. Notes, Series 19A | | | 2.532 | | | | 10/01/29 | | | | 190 | | | | 174,306 | |
Unsec’d. Notes, Series H | | | 2.746 | | | | 10/01/26 | | | | 50 | | | | 48,445 | |
Tenet Healthcare Corp., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes | | | 4.375 | | | | 01/15/30 | | | | 450 | | | | 431,973 | |
UnitedHealth Group, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 5.200 | | | | 04/15/63 | | | | 1,475 | | | | 1,474,575 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 5,828,103 | |
| | | | |
Home Builders 0.2% | | | | | | | | | | | | | | | | |
| | | | |
Brookfield Residential Properties, Inc./Brookfield Residential US LLC (Canada), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.875 | | | | 02/15/30 | | | | 600 | | | | 564,630 | |
M/I Homes, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.950 | | | | 02/01/28 | | | | 150 | | | | 147,428 | |
Mattamy Group Corp. (Canada), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 4.625 | | | | 03/01/30 | | | | 675 | | | | 642,937 | |
Taylor Morrison Communities, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.750 | | | | 01/15/28 | | | | 500 | | | | 508,375 | |
Gtd. Notes, 144A | | | 5.875 | | | | 06/15/27 | | | | 90 | | | | 91,901 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 1,955,271 | |
| | | | |
Housewares 0.0% | | | | | | | | | | | | | | | | |
| | | | |
Scotts Miracle-Gro Co. (The), | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.375 | | | | 02/01/32 | | | | 225 | | | | 208,284 | |
| | | | |
Insurance 0.2% | | | | | | | | | | | | | | | | |
| | | | |
CNA Financial Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 5.125 | | | | 02/15/34 | | | | 150 | | | | 153,385 | |
See Notes to Financial Statements.
44
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Insurance (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
Fairfax Financial Holdings Ltd. (Canada), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 6.000% | | | | 12/07/33 | | | | 875 | | | $ | 918,942 | |
Liberty Mutual Group, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 3.950 | | | | 05/15/60 | | | | 115 | | | | 84,632 | |
Gtd. Notes, 144A | | | 3.951 | | | | 10/15/50 | | | | 180 | | | | 140,541 | |
Gtd. Notes, 144A | | | 4.569 | | | | 02/01/29 | | | | 350 | | | | 351,581 | |
Lincoln National Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 6.300 | | | | 10/09/37 | | | | 110 | | | | 120,130 | |
Markel Group, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 5.000 | | | | 03/30/43 | | | | 25 | | | | 23,552 | |
New York Life Insurance Co., | | | | | | | | | | | | | | | | |
Sub. Notes, 144A(a) | | | 6.750 | | | | 11/15/39 | | | | 110 | | | | 129,872 | |
Principal Financial Group, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.625 | | | | 09/15/42 | | | | 15 | | | | 14,057 | |
Teachers Insurance & Annuity Association of America, | | | | | | | | | | | | | | | | |
Sub. Notes, 144A | | | 4.270 | | | | 05/15/47 | | | | 240 | | | | 209,356 | |
Sub. Notes, 144A | | | 6.850 | | | | 12/16/39 | | | | 22 | | | | 26,276 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 2,172,324 | |
| | | | |
Leisure Time 0.1% | | | | | | | | | | | | | | | | |
| | | | |
Carnival Corp., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 4.000 | | | | 08/01/28 | | | | 250 | | | | 240,670 | |
Carnival Holdings Bermuda Ltd., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 10.375 | | | | 05/01/28 | | | | 75 | | | | 80,947 | |
NCL Corp. Ltd., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.875 | | | | 03/15/26 | | | | 275 | | | | 275,000 | |
NCL Finance Ltd., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 6.125 | | | | 03/15/28 | | | | 125 | | | | 127,500 | |
Viking Cruises Ltd., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.875 | | | | 09/15/27 | | | | 250 | | | | 248,890 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 973,007 | |
| | | | |
Lodging 0.2% | | | | | | | | | | | | | | | | |
| | | | |
Hilton Domestic Operating Co., Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 3.625 | | | | 02/15/32 | | | | 300 | | | | 270,984 | |
Marriott International, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, Series R | | | 3.125 | | | | 06/15/26 | | | | 561 | | | | 550,349 | |
Sr. Unsec’d. Notes, Series X | | | 4.000 | | | | 04/15/28 | | | | 830 | | | | 821,069 | |
See Notes to Financial Statements.
PGIM Balanced Fund 45
Schedule of Investments (continued)
as of September 30, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Lodging (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
MGM Resorts International, | | | | | | | | | | | | | | | | |
Gtd. Notes(a) | | | 6.500% | | | | 04/15/32 | | | | 220 | | | $ | 223,970 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 1,866,372 | |
| | | | |
Machinery-Diversified 0.1% | | | | | | | | | | | | | | | | |
| | | | |
Chart Industries, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 7.500 | | | | 01/01/30 | | | | 50 | | | | 52,719 | |
Ingersoll Rand, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 5.700 | | | | 08/14/33 | | | | 440 | | | | 471,396 | |
Maxim Crane Works Holdings Capital LLC, | | | | | | | | | | | | | | | | |
Sec’d. Notes, 144A | | | 11.500 | | | | 09/01/28 | | | | 125 | | | | 132,554 | |
Westinghouse Air Brake Technologies Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.700 | | | | 09/15/28 | | | | 89 | | | | 90,128 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 746,797 | |
| | | | |
Media 0.5% | | | | | | | | | | | | | | | | |
| | | | |
CCO Holdings LLC/CCO Holdings Capital Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 4.250 | | | | 02/01/31 | | | | 100 | | | | 88,321 | |
Sr. Unsec’d. Notes, 144A | | | 5.375 | | | | 06/01/29 | | | | 375 | | | | 361,203 | |
Charter Communications Operating LLC/Charter Communications Operating Capital, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes | | | 3.900 | | | | 06/01/52 | | | | 290 | | | | 190,006 | |
Sr. Sec’d. Notes | | | 5.375 | | | | 05/01/47 | | | | 120 | | | | 100,491 | |
Sr. Sec’d. Notes | | | 6.384 | | | | 10/23/35 | | | | 110 | | | | 112,294 | |
Sr. Sec’d. Notes | | | 6.484 | | | | 10/23/45 | | | | 172 | | | | 165,712 | |
Comcast Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 3.969 | | | | 11/01/47 | | | | 19 | | | | 15,871 | |
Gtd. Notes | | | 5.500 | | | | 05/15/64 | | | | 700 | | | | 722,729 | |
Cox Communications, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.450 | | | | 09/01/34 | | | | 1,380 | | | | 1,395,420 | |
Diamond Sports Group LLC/Diamond Sports Finance Co., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A (original cost $6,750; purchased 01/31/24)(f) | | | 6.625 | | | | 08/15/27(d) | | | | 100 | | | | 1,288 | |
Sec’d. Notes, 144A (original cost $550,396; purchased 02/12/20)(f) | | | 5.375 | | | | 08/15/26(d) | | | | 550 | | | | 6,447 | |
DISH DBS Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 5.125 | | | | 06/01/29 | | | | 100 | | | | 67,042 | |
Gtd. Notes | | | 7.375 | | | | 07/01/28 | | | | 100 | | | | 74,724 | |
Gtd. Notes | | | 7.750 | | | | 07/01/26 | | | | 400 | | | | 346,943 | |
See Notes to Financial Statements.
46
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Media (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
DISH Network Corp., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 11.750% | | | | 11/15/27 | | | | 400 | | | $ | 419,509 | |
Time Warner Cable LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes | | | 5.500 | | | | 09/01/41 | | | | 140 | | | | 121,606 | |
Univision Communications, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 8.000 | | | | 08/15/28 | | | | 220 | | | | 224,998 | |
Virgin Media Secured Finance PLC (United Kingdom), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes | | | 4.250 | | | | 01/15/30 | | | GBP | 300 | | | | 352,233 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 4,766,837 | |
| | | | |
Mining 0.1% | | | | | | | | | | | | | | | | |
| | | | |
Barrick North America Finance LLC (Canada), | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 5.750 | | | | 05/01/43 | | | | 280 | | | | 296,850 | |
Freeport Indonesia PT (Indonesia), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A, MTN | | | 5.315 | | | | 04/14/32 | | | | 200 | | | | 202,675 | |
Newmont Corp./Newcrest Finance Pty Ltd., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 5.350 | | | | 03/15/34 | | | | 445 | | | | 466,700 | |
Novelis Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 3.250 | | | | 11/15/26 | | | | 200 | | | | 193,289 | |
Southern Copper Corp. (Mexico), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 7.500 | | | | 07/27/35 | | | | 95 | | | | 112,660 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 1,272,174 | |
| | | | |
Miscellaneous Manufacturing 0.1% | | | | | | | | | | | | | | | | |
| | | | |
Pentair Finance Sarl, | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.500 | | | | 07/01/29 | | | | 450 | | | | 447,048 | |
Teledyne Technologies, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 2.750 | | | | 04/01/31 | | | | 935 | | | | 840,750 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 1,287,798 | |
| | | | |
Multi-National 0.0% | | | | | | | | | | | | | | | | |
| | | | |
Corp. Andina de Fomento (Supranational Bank), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 5.000 | | | | 01/24/29 | | | | 50 | | | | 51,494 | |
| | | | |
Oil & Gas 0.9% | | | | | | | | | | | | | | | | |
| | | | |
Aethon United BR LP/Aethon United Finance Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 8.250 | | | | 02/15/26 | | | | 225 | | | | 227,739 | |
Aker BP ASA (Norway), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 3.100 | | | | 07/15/31 | | | | 450 | | | | 399,904 | |
See Notes to Financial Statements.
PGIM Balanced Fund 47
Schedule of Investments (continued)
as of September 30, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Oil & Gas (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
Ascent Resources Utica Holdings LLC/ARU Finance Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 9.000% | | | | 11/01/27 | | | | 79 | | | $ | 94,726 | |
Sr. Unsec’d. Notes, 144A | | | 8.250 | | | | 12/31/28 | | | | 125 | | | | 128,007 | |
BP Capital Markets PLC, | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.375(ff) | | | | 06/22/25(oo) | | | | 156 | | | | 154,352 | |
Canadian Natural Resources Ltd. (Canada), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 6.500 | | | | 02/15/37 | | | | 950 | | | | 1,031,970 | |
Cenovus Energy, Inc. (Canada), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 5.400 | | | | 06/15/47 | | | | 190 | | | | 183,501 | |
Chesapeake Energy Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.500 | | | | 02/01/26 | | | | 125 | | | | 124,847 | |
Gtd. Notes, 144A | | | 5.875 | | | | 02/01/29 | | | | 125 | | | | 125,659 | |
Civitas Resources, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 8.375 | | | | 07/01/28 | | | | 75 | | | | 78,381 | |
Gtd. Notes, 144A | | | 8.625 | | | | 11/01/30 | | | | 25 | | | | 26,505 | |
ConocoPhillips Co., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 3.758 | | | | 03/15/42 | | | | 150 | | | | 127,699 | |
Crescent Energy Finance LLC, | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 7.625 | | | | 04/01/32 | | | | 105 | | | | 105,311 | |
Devon Energy Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 5.600 | | | | 07/15/41 | | | | 35 | | | | 34,325 | |
Ecopetrol SA (Colombia), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 4.625 | | | | 11/02/31 | | | | 104 | | | | 89,097 | |
Sr. Unsec’d. Notes | | | 6.875 | | | | 04/29/30 | | | | 68 | | | | 67,838 | |
Sr. Unsec’d. Notes | | | 8.625 | | | | 01/19/29 | | | | 525 | | | | 564,506 | |
Energean Israel Finance Ltd. (Israel), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 4.875 | | | | 03/30/26 | | | | 200 | | | | 190,800 | |
Sr. Sec’d. Notes, 144A | | | 5.375 | | | | 03/30/28 | | | | 266 | | | | 238,070 | |
EOG Resources, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 3.900 | | | | 04/01/35 | | | | 120 | | | | 112,465 | |
Hilcorp Energy I LP/Hilcorp Finance Co., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 5.750 | | | | 02/01/29 | | | | 50 | | | | 48,681 | |
Sr. Unsec’d. Notes, 144A | | | 6.000 | | | | 04/15/30 | | | | 100 | | | | 97,434 | |
Sr. Unsec’d. Notes, 144A | | | 6.000 | | | | 02/01/31 | | | | 50 | | | | 48,563 | |
Sr. Unsec’d. Notes, 144A | | | 6.250 | | | | 04/15/32 | | | | 150 | | | | 146,064 | |
New Generation Gas Gathering LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A, 3 Month SOFR + 5.750% (Cap N/A, Floor 2.000%) | | | 10.342(c) | | | | 09/30/29 | | | | 54 | | | | 53,243 | |
Permian Resources Operating LLC, | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 8.000 | | | | 04/15/27 | | | | 175 | | | | 180,174 | |
See Notes to Financial Statements.
48
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Oil & Gas (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
Petrobras Global Finance BV (Brazil), | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 6.625% | | | | 01/16/34 | | | GBP | 330 | | | $ | 431,417 | |
Gtd. Notes, EMTN | | | 6.250 | | | | 12/14/26 | | | GBP | 140 | | | | 187,539 | |
Petroleos Mexicanos (Mexico), | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.750 | | | | 02/26/29 | | | EUR | 180 | | | | 185,715 | |
Gtd. Notes | | | 5.350 | | | | 02/12/28 | | | | 49 | | | | 45,791 | |
Gtd. Notes | | | 6.490 | | | | 01/23/27 | | | | 30 | | | | 29,550 | |
Gtd. Notes | | | 6.500 | | | | 03/13/27 | | | | 1,283 | | | | 1,256,698 | |
Gtd. Notes | | | 6.700 | | | | 02/16/32 | | | | 10 | | | | 8,942 | |
Gtd. Notes, EMTN | | | 2.750 | | | | 04/21/27 | | | EUR | 200 | | | | 205,724 | |
Gtd. Notes, EMTN | | | 4.875 | | | | 02/21/28 | | | EUR | 240 | | | | 255,134 | |
Phillips 66 Co., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 3.550 | | | | 10/01/26 | | | | 360 | | | | 355,222 | |
Southwestern Energy Co., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.750 | | | | 02/01/32 | | | | 200 | | | | 191,331 | |
Transocean, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 8.250 | | | | 05/15/29 | | | | 70 | | | | 69,125 | |
Var Energi ASA (Norway), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 5.000 | | | | 05/18/27 | | | | 870 | | | | 872,165 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 8,774,214 | |
| | | | |
Oil & Gas Services 0.0% | | | | | | | | | | | | | | | | |
| | | | |
Schlumberger Holdings Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 3.900 | | | | 05/17/28 | | | | 336 | | | | 332,281 | |
| | | | |
Packaging & Containers 0.1% | | | | | | | | | | | | | | | | |
| | | | |
AptarGroup, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 3.600 | | | | 03/15/32 | | | | 780 | | | | 711,570 | |
Ball Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 2.875 | | | | 08/15/30 | | | | 175 | | | | 155,696 | |
Gtd. Notes | | | 6.000 | | | | 06/15/29 | | | | 250 | | | | 258,687 | |
Pactiv Evergreen Group Issuer LLC/Pactiv Evergreen Group Issuer, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 4.375 | | | | 10/15/28 | | | | 125 | | | | 119,774 | |
Pactiv Evergreen Group Issuer, Inc./Pactiv Evergreen Group Issuer LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 4.000 | | | | 10/15/27 | | | | 275 | | | | 264,652 | |
Sealed Air Corp./Sealed Air Corp. US, | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 6.125 | | | | 02/01/28 | | | | 25 | | | | 25,425 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 1,535,804 | |
See Notes to Financial Statements.
PGIM Balanced Fund 49
Schedule of Investments (continued)
as of September 30, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Pharmaceuticals 0.6% | | | | | | | | | | | | | | | | |
| | | | |
AbbVie, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 3.800% | | | | 03/15/25 | | | | 315 | | | $ | 313,800 | |
Sr. Unsec’d. Notes | | | 4.050 | | | | 11/21/39 | | | | 180 | | | | 166,263 | |
Sr. Unsec’d. Notes | | | 4.550 | | | | 03/15/35 | | | | 430 | | | | 430,158 | |
Sr. Unsec’d. Notes | | | 4.700 | | | | 05/14/45 | | | | 740 | | | | 715,434 | |
AdaptHealth LLC, | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 6.125 | | | | 08/01/28 | | | | 125 | | | | 125,082 | |
Bausch Health Americas, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 8.500 | | | | 01/31/27 | | | | 25 | | | | 20,466 | |
Bausch Health Cos., Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.000 | | | | 01/30/28 | | | | 150 | | | | 97,500 | |
Gtd. Notes, 144A | | | 5.000 | | | | 02/15/29 | | | | 75 | | | | 43,312 | |
Gtd. Notes, 144A | | | 5.250 | | | | 01/30/30 | | | | 50 | | | | 28,000 | |
Gtd. Notes, 144A | | | 5.250 | | | | 02/15/31 | | | | 350 | | | | 190,750 | |
Gtd. Notes, 144A | | | 6.250 | | | | 02/15/29 | | | | 200 | | | | 122,500 | |
Gtd. Notes, 144A | | | 7.000 | | | | 01/15/28 | | | | 250 | | | | 170,000 | |
Gtd. Notes, 144A | | | 9.000 | | | | 12/15/25 | | | | 25 | | | | 23,937 | |
Sr. Sec’d. Notes, 144A | | | 4.875 | | | | 06/01/28 | | | | 50 | | | | 39,125 | |
Becton, Dickinson & Co., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 3.734 | | | | 12/15/24 | | | | 18 | | | | 17,936 | |
CVS Health Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 3.250 | | | | 08/15/29 | | | | 800 | | | | 755,783 | |
Sr. Unsec’d. Notes | | | 4.300 | | | | 03/25/28 | | | | 359 | | | | 357,901 | |
Sr. Unsec’d. Notes | | | 5.125 | | | | 07/20/45 | | | | 357 | | | | 332,737 | |
Sr. Unsec’d. Notes(a) | | | 5.875 | | | | 06/01/53 | | | | 35 | | | | 35,593 | |
Eli Lilly & Co., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 5.100 | | | | 02/09/64 | | | | 655 | | | | 668,812 | |
Organon & Co./Organon Foreign Debt Co-Issuer BV, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 5.125 | | | | 04/30/31 | | | | 200 | | | | 188,214 | |
Takeda Pharmaceutical Co. Ltd. (Japan), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 3.025 | | | | 07/09/40 | | | | 250 | | | | 193,114 | |
Utah Acquisition Sub, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 5.250 | | | | 06/15/46 | | | | 800 | | | | 700,792 | |
Viatris, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.000 | | | | 06/22/50 | | | | 40 | | | | 28,698 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 5,765,907 | |
| | | | |
Pipelines 0.9% | | | | | | | | | | | | | | | | |
Antero Midstream Partners LP/Antero Midstream Finance Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.750 | | | | 03/01/27 | | | | 350 | | | | 350,577 | |
See Notes to Financial Statements.
50
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Pipelines (cont’d.) | | | | | | | | | | | | | | | | |
Antero Midstream Partners LP/Antero Midstream Finance Corp., (cont’d.) | | | | | | | | | |
Gtd. Notes, 144A | | | 6.625% | | | | 02/01/32 | | | | 70 | | | $ | 72,412 | |
Columbia Pipelines Operating Co. LLC, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 6.036 | | | | 11/15/33 | | | | 325 | | | | 347,471 | |
Eastern Gas Transmission & Storage, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 4.600 | | | | 12/15/44 | | | | 10 | | | | 9,013 | |
Energy Transfer LP, | | | | | | | | | | | | | | | | |
Jr. Sub. Notes, Series H | | | 6.500(ff) | | | | 11/15/26(oo) | | | | 610 | | | | 610,323 | |
Sr. Unsec’d. Notes | | | 4.950 | | | | 06/15/28 | | | | 210 | | | | 213,581 | |
Sr. Unsec’d. Notes | | | 5.000 | | | | 05/15/50 | | | | 170 | | | | 153,586 | |
Sr. Unsec’d. Notes | | | 5.300 | | | | 04/15/47 | | | | 500 | | | | 470,771 | |
Sr. Unsec’d. Notes | | | 6.400 | | | | 12/01/30 | | | | 150 | | | | 163,291 | |
Sr. Unsec’d. Notes | | | 6.550 | | | | 12/01/33 | | | | 80 | | | | 88,350 | |
Enterprise Products Operating LLC, | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 3.950 | | | | 01/31/60 | | | | 55 | | | | 43,086 | |
Gtd. Notes | | | 4.850 | | | | 03/15/44 | | | | 185 | | | | 176,291 | |
EQM Midstream Partners LP, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 6.500 | | | | 07/01/27 | | | | 150 | | | | 154,451 | |
Florida Gas Transmission Co. LLC, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 2.550 | | | | 07/01/30 | | | | 350 | | | | 314,864 | |
Kinder Morgan, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 3.250 | | | | 08/01/50 | | | | 220 | | | | 149,744 | |
MPLX LP, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 2.650 | | | | 08/15/30 | | | | 630 | | | | 566,993 | |
Sr. Unsec’d. Notes | | | 4.500 | | | | 04/15/38 | | | | 175 | | | | 161,691 | |
Sr. Unsec’d. Notes | | | 4.875 | | | | 06/01/25 | | | | 375 | | | | 374,798 | |
Sr. Unsec’d. Notes | | | 5.200 | | | | 03/01/47 | | | | 20 | | | | 18,966 | |
Sr. Unsec’d. Notes | | | 5.500 | | | | 02/15/49 | | | | 176 | | | | 171,189 | |
ONEOK Partners LP, | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 6.200 | | | | 09/15/43 | | | | 205 | | | | 215,598 | |
ONEOK, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.500 | | | | 03/15/50 | | | | 1,000 | | | | 834,185 | |
Spectra Energy Partners LP, | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 3.375 | | | | 10/15/26 | | | | 165 | | | | 162,107 | |
Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.500 | | | | 01/15/28 | | | | 275 | | | | 266,297 | |
Gtd. Notes, 144A | | | 6.000 | | | | 12/31/30 | | | | 125 | | | | 118,825 | |
Venture Global Calcasieu Pass LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 3.875 | | | | 08/15/29 | | | | 30 | | | | 28,351 | |
Sr. Sec’d. Notes, 144A | | | 4.125 | | | | 08/15/31 | | | | 30 | | | | 27,899 | |
See Notes to Financial Statements.
PGIM Balanced Fund 51
Schedule of Investments (continued)
as of September 30, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Pipelines (cont’d.) | | | | | | | | | | | | | | | | |
Venture Global LNG, Inc., | | | | | | | | | | | | | | | | |
Jr. Sub. Notes, 144A | | | 9.000%(ff) | | | | 09/30/29(oo) | | | | 220 | | | $ | 222,998 | |
Western Midstream Operating LP, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 4.050 | | | | 02/01/30 | | | | 1,180 | | | | 1,136,054 | |
Sr. Unsec’d. Notes | | | 5.300 | | | | 03/01/48 | | | | 20 | | | | 18,163 | |
Williams Cos., Inc. (The), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 4.900 | | | | 01/15/45 | | | | 220 | | | | 203,647 | |
Sr. Unsec’d. Notes | | | 5.150 | | | | 03/15/34 | | | | 340 | | | | 343,813 | |
Sr. Unsec’d. Notes | | | 5.400 | | | | 03/02/26 | | | | 430 | | | | 435,566 | |
Sr. Unsec’d. Notes | | | 5.400 | | | | 03/04/44 | | | | 175 | | | | 172,770 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 8,797,721 | |
| | | | |
Real Estate 0.1% | | | | | | | | | | | | | | | | |
Howard Hughes Corp. (The), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.125 | | | | 02/01/29 | | | | 350 | | | | 326,682 | |
Gtd. Notes, 144A | | | 5.375 | | | | 08/01/28 | | | | 275 | | | | 271,016 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 597,698 | |
| | | | |
Real Estate Investment Trusts (REITs) 0.8% | | | | | | | | | | | | | | | | |
American Tower Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 5.200 | | | | 02/15/29 | | | | 855 | | | | 881,174 | |
Brandywine Operating Partnership LP, | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.550 | | | | 10/01/29 | | | | 450 | | | | 423,276 | |
Brixmor Operating Partnership LP, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 4.050 | | | | 07/01/30 | | | | 345 | | | | 334,890 | |
Diversified Healthcare Trust, | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.375 | | | | 03/01/31 | | | | 50 | | | | 41,224 | |
Gtd. Notes | | | 9.750 | | | | 06/15/25 | | | | 21 | | | | 20,996 | |
Sr. Unsec’d. Notes | | | 4.750 | | | | 02/15/28 | | | | 400 | | | | 362,000 | |
GLP Capital LP/GLP Financing II, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 5.375 | | | | 04/15/26 | | | | 175 | | | | 175,765 | |
Healthpeak OP LLC, | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 2.875 | | | | 01/15/31 | | | | 315 | | | | 286,678 | |
Gtd. Notes | | | 5.250 | | | | 12/15/32 | | | | 950 | | | | 978,174 | |
Realty Income Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 3.400 | | | | 01/15/28 | | | | 800 | | | | 780,478 | |
RHP Hotel Properties LP/RHP Finance Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 6.500 | | | | 04/01/32 | | | | 205 | | | | 211,929 | |
SBA Communications Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 3.125 | | | | 02/01/29 | | | | 350 | | | | 323,763 | |
See Notes to Financial Statements.
52
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Real Estate Investment Trusts (REITs) (cont’d.) | | | | | | | | | | | | | | | | |
Sun Communities Operating LP, | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 2.700% | | | | 07/15/31 | | | | 1,395 | | | $ | 1,218,401 | |
Ventas Realty LP, | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 2.650 | | | | 01/15/25 | | | | 1,750 | | | | 1,735,497 | |
Welltower OP LLC, | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.250 | | | | 04/01/26 | | | | 160 | | | | 159,821 | |
WP Carey, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 2.250 | | | | 04/01/33 | | | | 545 | | | | 450,087 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 8,384,153 | |
| | | | |
Retail 0.2% | | | | | | | | | | | | | | | | |
1011778 BC ULC/New Red Finance, Inc. (Canada), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 6.125 | | | | 06/15/29 | | | | 100 | | | | 102,625 | |
AutoZone, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 1.650 | | | | 01/15/31 | | | | 185 | | | | 156,186 | |
Carvana Co., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A, Cash coupon 9.000% or PIK 12.000% | | | 12.000 | | | | 12/01/28 | | | | 125 | | | | 131,089 | |
Sr. Sec’d. Notes, 144A, Cash coupon 11.000% or PIK 13.000% | | | 13.000 | | | | 06/01/30 | | | | 225 | | | | 244,696 | |
eG Global Finance PLC (United Kingdom), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 11.000 | | | | 11/30/28 | | | EUR | 500 | | | | 614,559 | |
Sr. Sec’d. Notes, 144A | | | 12.000 | | | | 11/30/28 | | | | 400 | | | | 445,156 | |
Lithia Motors, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 3.875 | | | | 06/01/29 | | | | 225 | | | | 210,048 | |
Sally Holdings LLC/Sally Capital, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 6.750 | | | | 03/01/32 | | | | 100 | | | | 102,766 | |
Suburban Propane Partners LP/Suburban Energy Finance Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 5.875 | | | | 03/01/27 | | | | 325 | | | | 325,038 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 2,332,163 | |
| | | | |
Semiconductors 0.2% | | | | | | | | | | | | | | | | |
Broadcom, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 3.419 | | | | 04/15/33 | | | | 1,750 | | | | 1,589,783 | |
| | | | |
Software 0.1% | | | | | | | | | | | | | | | | |
Fiserv, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 5.450 | | | | 03/02/28 | | | | 620 | | | | 643,249 | |
See Notes to Financial Statements.
PGIM Balanced Fund 53
Schedule of Investments (continued)
as of September 30, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Telecommunications 1.0% | | | | | | | | | | | | | | | | |
AT&T, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 2.550% | | | | 12/01/33 | | | | 129 | | | $ | 108,747 | |
Sr. Unsec’d. Notes | | | 3.550 | | | | 09/15/55 | | | | 115 | | | | 84,023 | |
Sr. Unsec’d. Notes | | | 4.500 | | | | 05/15/35 | | | | 125 | | | | 121,744 | |
Sr. Unsec’d. Notes | | | 5.400 | | | | 02/15/34 | | | | 2,435 | | | | 2,554,679 | |
Digicel Group Holdings Ltd. (Jamaica), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, Series 1B14, 144A (original cost $5; purchased 11/14/23)^(f) | | | 0.000 | | | | 12/31/30 | | | | 46 | | | | 3,460 | |
Sr. Sec’d. Notes, Series 3A14, 144A (original cost $552; purchased 11/14/23)^(f) | | | 0.000 | | | | 12/31/30 | | | | —(r) | | | | 241 | |
Sr. Sec’d. Notes, Series 3B14, 144A (original cost $3; purchased 11/14/23)^(f) | | | 0.000 | | | | 12/31/30 | | | | 30 | | | | 202 | |
Digicel Intermediate Holdings Ltd./Digicel International Finance Ltd./DIFL US (Jamaica), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, Cash coupon 9.000% and PIK 1.500% (original cost $357,343; purchased 01/30/24 - 05/15/24)(f) | | | 10.500 | | | | 05/25/27 | | | | 385 | | | | 387,327 | |
Digicel MidCo Ltd./DIFL US II LLC (Jamaica), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, PIK 10.500% (original cost $18,654; purchased
01/30/24 - 05/15/24)(f) | | | 10.500 | | | | 11/25/28 | | | | 28 | | | | 26,015 | |
Iliad Holding SASU (France), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 7.000 | | | | 10/15/28 | | | | 200 | | | | 202,764 | |
Intelsat Jackson Holdings SA (Luxembourg), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 6.500 | | | | 03/15/30 | | | | 625 | | | | 598,438 | |
Level 3 Financing, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 10.750 | | | | 12/15/30 | | | | 200 | | | | 219,688 | |
Sr. Sec’d. Notes, 144A | | | 11.000 | | | | 11/15/29 | | | | 500 | | | | 554,279 | |
Rogers Communications, Inc. (Canada), | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 5.300 | | | | 02/15/34 | | | | 1,065 | | | | 1,080,641 | |
Sprint Capital Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 8.750 | | | | 03/15/32 | | | | 300 | | | | 372,706 | |
TalkTalk Telecom Group Ltd. (United Kingdom), | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 3.875 | | | | 02/20/25 | | | GBP | 300 | | | | 272,738 | |
T-Mobile USA, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 2.550 | | | | 02/15/31 | | | | 1,910 | | | | 1,701,840 | |
Gtd. Notes | | | 2.625 | | | | 02/15/29 | | | | 275 | | | | 256,329 | |
Gtd. Notes | | | 3.750 | | | | 04/15/27 | | | | 75 | | | | 74,090 | |
Verizon Communications, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 1.680 | | | | 10/30/30 | | | | 5 | | | | 4,276 | |
Sr. Unsec’d. Notes | | | 3.400 | | | | 03/22/41 | | | | 480 | | | | 392,284 | |
Vmed O2 UK Financing I PLC (United Kingdom), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes | | | 4.000 | | | | 01/31/29 | | | GBP | 300 | | | | 358,410 | |
See Notes to Financial Statements.
54
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Telecommunications (cont’d.) | | | | | | | | | | | | | | | | |
Windstream Escrow LLC/Windstream Escrow Finance Corp., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 8.250% | | | | 10/01/31 | | | | 60 | | | $ | 61,109 | |
Zegona Finance PLC (United Kingdom), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 6.750 | | | | 07/15/29 | | | EUR | 825 | | | | 957,709 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 10,393,739 | |
| | | | |
Transportation 0.1% | | | | | | | | | | | | | | | | |
Burlington Northern Santa Fe LLC, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 6.700 | | | | 08/01/28 | | | | 135 | | | | 146,179 | |
CSX Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 6.150 | | | | 05/01/37 | | | | 170 | | | | 191,925 | |
GN Bondco LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 9.500 | | | | 10/15/31 | | | | 800 | | | | 841,531 | |
Indian Railway Finance Corp. Ltd. (India), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A, MTN | | | 3.570 | | | | 01/21/32 | | | | 200 | | | | 185,188 | |
Norfolk Southern Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 5.590 | | | | 05/17/25 | | | | 20 | | | | 20,079 | |
XPO, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A(a) | | | 7.125 | | | | 06/01/31 | | | | 25 | | | | 26,201 | |
Gtd. Notes, 144A | | | 7.125 | | | | 02/01/32 | | | | 80 | | | | 84,086 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 1,495,189 | |
| | | | |
Trucking & Leasing 0.1% | | | | | | | | | | | | | | | | |
Penske Truck Leasing Co. LP/PTL Finance Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 5.550 | | | | 05/01/28 | | | | 785 | | | | 811,348 | |
| | | | | | | | | | | | | | | | |
| | | | |
TOTAL CORPORATE BONDS
(cost $162,860,138) | | | | | | | | | | | | | | | 157,483,520 | |
| | | | | | | | | | | | | | | | |
| | | | |
FLOATING RATE AND OTHER LOANS 0.0% | | | | | | | | | | | | | | | | |
| | | | |
Media 0.0% | | | | | | | | | | | | | | | | |
Diamond Sports Group LLC, | | | | | | | | | | | | | | | | |
Dip Term Loan | | | 10.000 | | | | 12/02/24 | | | | 76 | | | | 91,292 | |
First Lien Term Loan, 1 Month SOFR + 10.005% | | | 15.301(c) | | | | 05/25/26 | | | | 33 | | | | 30,040 | |
Second Lien Term Loan, 1 Month SOFR + 3.400% | | | 8.175(c) | | | | 08/24/26 | | | | 620 | | | | 6,665 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 127,997 | |
See Notes to Financial Statements.
PGIM Balanced Fund 55
Schedule of Investments (continued)
as of September 30, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal Amount (000)# | | | Value | |
| | | | |
FLOATING RATE AND OTHER LOANS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Telecommunications 0.0% | | | | | | | | | | | | | | | | |
Digicel International Finance Ltd. (Jamaica), | | | | | | | | | | | | | | | | |
Initial Term Loan, 3 Month SOFR + 6.750% | | | 12.002%(c) | | | | 05/25/27 | | | | 350 | | | $ | 346,052 | |
| | | | | | | | | | | | | | | | |
| | | | |
TOTAL FLOATING RATE AND OTHER LOANS
(cost $630,799) | | | | | | | | | | | | | | | 474,049 | |
| | | | | | | | | | | | | | | | |
| | | | |
MUNICIPAL BONDS 0.2% | | | | | | | | | | | | | | | | |
| | | | |
Alabama 0.0% | | | | | | | | | | | | | | | | |
Alabama Economic Settlement Authority, | | | | | | | | | | | | | | | | |
Taxable, Revenue Bonds, Series B | | | 4.263 | | | | 09/15/32 | | | | 35 | | | | 34,503 | |
| | | | | | | | | | | | | | | | |
| | | | |
California 0.1% | | | | | | | | | | | | | | | | |
Bay Area Toll Authority, | | | | | | | | | | | | | | | | |
Revenue Bonds, BABs, Series F2 | | | 6.263 | | | | 04/01/49 | | | | 220 | | | | 250,688 | |
State of California, | | | | | | | | | | | | | | | | |
General Obligation Unlimited, BABs | | | 7.300 | | | | 10/01/39 | | | | 210 | | | | 253,281 | |
General Obligation Unlimited, Taxable, BABs | | | 7.500 | | | | 04/01/34 | | | | 15 | | | | 18,051 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 522,020 | |
| | | | | | | | | | | | | | | | |
| | | | |
Illinois 0.0% | | | | | | | | | | | | | | | | |
Chicago O’Hare International Airport, | | | | | | | | | | | | | | | | |
Revenue Bonds, BABs, Series B | | | 6.395 | | | | 01/01/40 | | | | 160 | | | | 182,010 | |
State of Illinois, | | | | | | | | | | | | | | | | |
General Obligation Unlimited, Taxable | | | 5.100 | | | | 06/01/33 | | | | 94 | | | | 95,385 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 277,395 | |
| | | | | | | | | | | | | | | | |
| | | | |
Michigan 0.1% | | | | | | | | | | | | | | | | |
Michigan State University, | | | | | | | | | | | | | | | | |
Taxable, Revenue Bonds, Series A | | | 4.165 | | | | 08/15/22 | | | | 435 | | | | 361,192 | |
University of Michigan, | | | | | | | | | | | | | | | | |
Taxable, Revenue Bonds, Series A | | | 4.454 | | | | 04/01/2122 | | | | 440 | | | | 389,505 | |
Taxable, Revenue Bonds, Series B | | | 2.437 | | | | 04/01/40 | | | | 550 | | | | 419,911 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 1,170,608 | |
| | | | | | | | | | | | | | | | |
| | | | |
New Jersey 0.0% | | | | | | | | | | | | | | | | |
New Jersey Turnpike Authority, | | | | | | | | | | | | | | | | |
Taxable, Revenue Bonds, BABs, Series F | | | 7.414 | | | | 01/01/40 | | | | 165 | | | | 202,746 | |
| | | | | | | | | | | | | | | | |
See Notes to Financial Statements.
56
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal Amount (000)# | | | Value | |
| | | | |
MUNICIPAL BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Ohio 0.0% | | | | | | | | | | | | | | | | |
Ohio State University (The), | | | | | | | | | | | | | | | | |
Taxable, Revenue Bonds, BABs, Series C | | | 4.910% | | | | 06/01/40 | | | | 65 | | | $ | 65,559 | |
| | | | | | | | | | | | | | | | |
| | | | |
Pennsylvania 0.0% | | | | | | | | | | | | | | | | |
Pennsylvania Turnpike Commission, | | | | | | | | | | | | | | | | |
Revenue Bonds, BABs, Series B | | | 5.511 | | | | 12/01/45 | | | | 80 | | | | 83,232 | |
| | | | | | | | | | | | | | | | |
| | | | |
Virginia 0.0% | | | | | | | | | | | | | | | | |
University of Virginia, | | | | | | | | | | | | | | | | |
Taxable, Revenue Bonds, Series C | | | 4.179 | | | | 09/01/2117 | | | | 80 | | | | 66,792 | |
| | | | | | | | | | | | | | | | |
| | | | |
TOTAL MUNICIPAL BONDS
(cost $2,571,096) | | | | | | | | | | | | | | | 2,422,855 | |
| | | | | | | | | | | | | | | | |
| | | | |
RESIDENTIAL MORTGAGE-BACKED SECURITIES 0.9% | | | | | | | | | | | | | | | | |
Banc of America Mortgage Trust, | | | | | | | | | | | | | | | | |
Series 2005-A, Class 2A1 | | | 4.940(cc) | | | | 02/25/35 | | | | 4 | | | | 4,274 | |
Bellemeade Re Ltd., | | | | | | | | | | | | | | | | |
Series 2022-01, Class M1B, 144A, 30 Day Average SOFR + 2.150% (Cap N/A, Floor 2.150%) | | | 7.430(c) | | | | 01/26/32 | | | | 160 | | | | 160,764 | |
Series 2022-01, Class M1C, 144A, 30 Day Average SOFR + 3.700% (Cap N/A, Floor 3.700%) | | | 8.980(c) | | | | 01/26/32 | | | | 360 | | | | 368,060 | |
Chase Mortgage Finance Trust, | | | | | | | | | | | | | | | | |
Series 2007-A01, Class 1A5 | | | 6.552(cc) | | | | 02/25/37 | | | | 10 | | | | 9,604 | |
Citigroup Mortgage Loan Trust, | | | | | | | | | | | | | | | | |
Series 2022-A, Class A1, 144A | | | 6.170 | | | | 09/25/62 | | | | 249 | | | | 248,592 | |
Connecticut Avenue Securities Trust, | | | | | | | | | | | | | | | | |
Series 2022-R03, Class 1B1, 144A, 30 Day Average SOFR + 6.250% (Cap N/A, Floor 0.000%) | | | 11.530(c) | | | | 03/25/42 | | | | 105 | | | | 115,795 | |
Series 2022-R04, Class 1B1, 144A, 30 Day Average SOFR + 5.250% (Cap N/A, Floor 0.000%) | | | 10.530(c) | | | | 03/25/42 | | | | 90 | | | | 97,238 | |
Credit Suisse Mortgage Trust, | | | | | | | | | | | | | | | | |
Series 2018-RPL09, Class A, 144A | | | 3.850(cc) | | | | 09/25/57 | | | | 167 | | | | 162,621 | |
Series 2020-RPL06, Class A1, 144A | | | 3.445(cc) | | | | 03/25/59 | | | | 302 | | | | 301,655 | |
Series 2022-RPL04, Class A1, 144A | | | 3.904(cc) | | | | 04/25/62 | | | | 327 | | | | 315,350 | |
Eagle Re Ltd., | | | | | | | | | | | | | | | | |
Series 2021-01, Class M1C, 144A, 30 Day Average SOFR + 2.700% (Cap N/A, Floor 2.700%) | | | 7.980(c) | | | | 10/25/33 | | | | 33 | | | | 33,044 | |
Series 2021-02, Class M1C, 144A, 30 Day Average SOFR + 3.450% (Cap N/A, Floor 3.450%) | | | 8.730(c) | | | | 04/25/34 | | | | 240 | | | | 244,584 | |
See Notes to Financial Statements.
PGIM Balanced Fund 57
Schedule of Investments (continued)
as of September 30, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal Amount (000)# | | | Value | |
| | | | |
RESIDENTIAL MORTGAGE-BACKED SECURITIES (Continued) | | | | | | | | | | | | | | | | |
Fannie Mae Connecticut Avenue Securities, | | | | | | | | | | | | | | | | |
Series 2021-R02, Class 2M2, 144A, 30 Day Average SOFR + 2.000% (Cap N/A, Floor 0.000%) | | | 7.280%(c) | | | | 11/25/41 | | | | 90 | | | $ | 90,338 | |
Fannie Mae REMIC, | | | | | | | | | | | | | | | | |
Series 2014-11, Class VB | | | 4.500 | | | | 04/25/42 | | | | 500 | | | | 498,793 | |
FHLMC Structured Agency Credit Risk REMIC Trust, | | | | | | | | | | | | | | | | |
Series 2020-DNA05, Class B1, 144A, 30 Day Average SOFR + 4.800% (Cap N/A, Floor 0.000%) | | | 10.080(c) | | | | 10/25/50 | | | | 190 | | | | 216,766 | |
Series 2020-HQA05, Class B1, 144A, 30 Day Average SOFR + 4.000% (Cap N/A, Floor 0.000%) | | | 9.280(c) | | | | 11/25/50 | | | | 250 | | | | 281,992 | |
Series 2021-DNA05, Class M2, 144A, 30 Day Average SOFR + 1.650% (Cap N/A, Floor 0.000%) | | | 6.930(c) | | | | 01/25/34 | | | | 53 | | | | 52,962 | |
Series 2021-DNA06, Class B1, 144A, 30 Day Average SOFR + 3.400% (Cap N/A, Floor 0.000%) | | | 8.680(c) | | | | 10/25/41 | | | | 200 | | | | 206,203 | |
Series 2021-HQA03, Class M2, 144A, 30 Day Average SOFR + 2.100% (Cap N/A, Floor 0.000%) | | | 7.380(c) | | | | 09/25/41 | | | | 300 | | | | 302,298 | |
Series 2021-HQA04, Class M2, 144A, 30 Day Average SOFR + 2.350% (Cap N/A, Floor 0.000%) | | | 7.630(c) | | | | 12/25/41 | | | | 200 | | | | 202,529 | |
Series 2022-DNA01, Class M1B, 144A, 30 Day Average SOFR + 1.850% (Cap N/A, Floor 0.000%) | | | 7.130(c) | | | | 01/25/42 | | | | 410 | | | | 415,592 | |
Series 2022-DNA02, Class M1B, 144A, 30 Day Average SOFR + 2.400% (Cap N/A, Floor 0.000%) | | | 7.680(c) | | | | 02/25/42 | | | | 300 | | | | 306,906 | |
Series 2022-DNA03, Class M1B, 144A, 30 Day Average SOFR + 2.900% (Cap N/A, Floor 0.000%) | | | 8.180(c) | | | | 04/25/42 | | | | 100 | | | | 103,430 | |
Home Re Ltd., | | | | | | | | | | | | | | | | |
Series 2021-02, Class M1C, 144A, 30 Day Average SOFR + 2.800% (Cap N/A, Floor 0.000%) | | | 8.080(c) | | | | 01/25/34 | | | | 170 | | | | 171,505 | |
JPMorgan Mortgage Trust, | | | | | | | | | | | | | | | | |
Series 2007-A01, Class 4A1 | | | 7.205(cc) | | | | 07/25/35 | | | | 2 | | | | 1,555 | |
Legacy Mortgage Asset Trust, | | | | | | | | | | | | | | | | |
Series 2019-PR01, Class A1, 144A | | | 7.858 | | | | 09/25/59 | | | | 147 | | | | 146,746 | |
Series 2021-GS01, Class A1, 144A | | | 4.892 | | | | 10/25/66 | | | | 114 | | | | 113,741 | |
Series 2021-SL01, Class A, 144A | | | 4.991(cc) | | | | 09/25/60 | | | | 28 | | | | 27,873 | |
LHOME Mortgage Trust, | | | | | | | | | | | | | | | | |
Series 2024-RTL04, Class A1, 144A | | | 5.921 | | | | 07/25/39 | | | | 250 | | | | 253,187 | |
Mill City Mortgage Loan Trust, | | | | | | | | | | | | | | | | |
Series 2018-01, Class A1, 144A | | | 3.250(cc) | | | | 05/25/62 | | | | 20 | | | | 19,879 | |
New Residential Mortgage Loan Trust, | | | | | | | | | | | | | | | | |
Series 2018-04A, Class A1S, 144A, 1 Month SOFR + 0.864% (Cap N/A, Floor 0.750%) | | | 5.719(c) | | | | 01/25/48 | | | | 46 | | | | 45,016 | |
Oaktown Re VII Ltd., | | | | | | | | | | | | | | | | |
Series 2021-02, Class M1B, 144A, 30 Day Average SOFR + 2.900% (Cap N/A, Floor 2.900%) | | | 8.180(c) | | | | 04/25/34 | | | | 200 | | | | 203,462 | |
See Notes to Financial Statements.
58
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal Amount (000)# | | | Value | |
| | | | |
RESIDENTIAL MORTGAGE-BACKED SECURITIES (Continued) | | | | | | | | | | | | | | | | |
OBX Trust, | | | | | | | | | | | | | | | | |
Series 2018-01, Class A2, 144A, 1 Month SOFR + 0.764% (Cap N/A, Floor 0.000%) | | | 5.619%(c) | | | | 06/25/57 | | | | 44 | | | $ | 42,714 | |
PMT Credit Risk Transfer Trust, | | | | | | | | | | | | | | | | |
Series 2024-01R, Class A, 144A, 30 Day Average SOFR + 3.500% (Cap N/A, Floor 0.000%) | | | 8.780(c) | | | | 05/25/33 | | | | 1,042 | | | | 1,051,797 | |
Series 2024-02R, Class A, 144A, 30 Day Average SOFR + 3.350% (Cap N/A, Floor 0.000%) | | | 8.597(c) | | | | 03/29/27 | | | | 667 | | | | 671,299 | |
PRET Trust, | | | | | | | | | | | | | | | | |
Series 2024-RPL02, Class A1, 144A | | | 4.075(cc) | | | | 06/25/64 | | | | 496 | | | | 474,088 | |
Radnor Re Ltd., | | | | | | | | | | | | | | | | |
Series 2021-02, Class M1B, 144A, 30 Day Average SOFR + 3.700% (Cap N/A, Floor 3.700%) | | | 8.980(c) | | | | 11/25/31 | | | | 273 | | | | 279,332 | |
Series 2023-01, Class M1A, 144A, 30 Day Average SOFR + 2.700% (Cap N/A, Floor 2.700%) | | | 7.980(c) | | | | 07/25/33 | | | | 150 | | | | 151,643 | |
RCKT Mortgage Trust, | | | | | | | | | | | | | | | | |
Series 2024-CES05, Class A1A, 144A | | | 5.846 | | | | 08/25/44 | | | | 245 | | | | 247,616 | |
Series 2024-CES07, Class A1A, 144A | | | 5.158 | | | | 10/25/44 | | | | 500 | | | | 499,267 | |
Shamrock Residential (Ireland), | | | | | | | | | | | | | | | | |
Series 2023-01A, Class A, 144A, 1 Month EURIBOR + 1.000% (Cap N/A, Floor 0.000%) | | | 4.374(c) | | | | 06/24/71 | | | EUR | 99 | | | | 109,573 | |
Structured Adjustable Rate Mortgage Loan Trust, | | | | | | | | | | | | | | | | |
Series 2004-01, Class 4A3 | | | 7.251(cc) | | | | 02/25/34 | | | | 8 | | | | 7,347 | |
Towd Point Mortgage Trust, | | | | | | | | | | | | | | | | |
Series 2017-05, Class A1, 144A, 1 Month SOFR + 0.714% (Cap N/A, Floor 0.000%) | | | 5.569(c) | | | | 02/25/57 | | | | 31 | | | | 31,782 | |
| | | | | | | | | | | | | | | | |
| | | | |
TOTAL RESIDENTIAL MORTGAGE-BACKED SECURITIES
(cost $9,177,502) | | | | | | | | | | | | | | | 9,288,812 | |
| | | | | | | | | | | | | | | | |
| | | | |
SOVEREIGN BONDS 0.7% | | | | | | | | | | | | | | | | |
Bermuda Government International Bond (Bermuda), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 2.375 | | | | 08/20/30 | | | | 200 | | | | 176,563 | |
Dominican Republic International Bond (Dominican Republic), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 5.500 | | | | 02/22/29 | | | | 440 | | | | 443,300 | |
Export-Import Bank of India (India), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 3.875 | | | | 02/01/28 | | | | 200 | | | | 196,312 | |
Indonesia Government International Bond (Indonesia), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 1.100 | | | | 03/12/33 | | | EUR | 100 | | | | 91,696 | |
Sr. Unsec’d. Notes | | | 1.450 | | | | 09/18/26 | | | EUR | 315 | | | | 338,479 | |
Sr. Unsec’d. Notes | | | 3.375 | | | | 07/30/25 | | | EUR | 350 | | | | 389,018 | |
Sr. Unsec’d. Notes | | | 3.500 | | | | 01/11/28 | | | | 370 | | | | 363,294 | |
See Notes to Financial Statements.
PGIM Balanced Fund 59
Schedule of Investments (continued)
as of September 30, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal Amount (000)# | | | Value | |
| | | | |
SOVEREIGN BONDS (Continued) | | | | | | | | | | | | | | | | |
Ivory Coast Government International Bond (Ivory Coast), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 5.250% | | | | 03/22/30 | | | EUR | 200 | | | $ | 212,055 | |
Sr. Unsec’d. Notes | | | 5.875 | | | | 10/17/31 | | | EUR | 200 | | | | 210,942 | |
Panama Government International Bond (Panama), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 6.700 | | | | 01/26/36 | | | | 200 | | | | 208,812 | |
Province of Manitoba (Canada), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 2.125 | | | | 06/22/26 | | | | 100 | | | | 96,910 | |
Republic of Italy Government International Bond (Italy), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, Series 10Y | | | 2.875 | | | | 10/17/29 | | | | 2,000 | | | | 1,850,996 | |
Romanian Government International Bond (Romania), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A, MTN | | | 5.000 | | | | 09/27/26 | | | EUR | 400 | | | | 457,282 | |
Serbia International Bond (Serbia), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 1.500 | | | | 06/26/29 | | | EUR | 684 | | | | 678,355 | |
Sr. Unsec’d. Notes | | | 1.650 | | | | 03/03/33 | | | EUR | 100 | | | | 87,661 | |
Sr. Unsec’d. Notes | | | 3.125 | | | | 05/15/27 | | | EUR | 497 | | | | 542,818 | |
Sr. Unsec’d. Notes, 144A | | | 3.125 | | | | 05/15/27 | | | EUR | 100 | | | | 109,219 | |
Sr. Unsec’d. Notes, 144A | | | 6.000 | | | | 06/12/34 | | | | 397 | | | | 408,711 | |
Sr. Unsec’d. Notes, 144A | | | 6.250 | | | | 05/26/28 | | | | 200 | | | | 207,906 | |
| | | | | | | | | | | | | | | | |
| | | | |
TOTAL SOVEREIGN BONDS
(cost $7,072,287) | | | | | | | | | | | | | | | 7,070,329 | |
| | | | | | | | | | | | | | | | |
| | | | |
U.S. GOVERNMENT AGENCY OBLIGATIONS 6.6% | | | | | | | | | | | | | | | | |
Federal Home Loan Bank | | | 5.500 | | | | 07/15/36 | | | | 135 | | | | 152,797 | |
Federal Home Loan Mortgage Corp. | | | 1.500 | | | | 10/01/36 | | | | 1,474 | | | | 1,320,623 | |
Federal Home Loan Mortgage Corp. | | | 2.000 | | | | 12/01/50 | | | | 463 | | | | 385,689 | |
Federal Home Loan Mortgage Corp. | | | 2.500 | | | | 09/01/46 | | | | 341 | | | | 301,085 | |
Federal Home Loan Mortgage Corp. | | | 2.500 | | | | 08/01/50 | | | | 492 | | | | 429,400 | |
Federal Home Loan Mortgage Corp. | | | 2.500 | | | | 03/01/51 | | | | 1,790 | | | | 1,561,271 | |
Federal Home Loan Mortgage Corp. | | | 2.500 | | | | 05/01/51 | | | | 483 | | | | 419,450 | |
Federal Home Loan Mortgage Corp. | | | 2.500 | | | | 05/01/51 | | | | 1,545 | | | | 1,338,887 | |
Federal Home Loan Mortgage Corp. | | | 2.500 | | | | 07/01/51 | | | | 762 | | | | 663,776 | |
Federal Home Loan Mortgage Corp. | | | 2.500 | | | | 07/01/51 | | | | 986 | | | | 852,724 | |
Federal Home Loan Mortgage Corp. | | | 2.500 | | | | 08/01/51 | | | | 576 | | | | 505,323 | |
Federal Home Loan Mortgage Corp. | | | 2.500 | | | | 01/01/52 | | | | 486 | | | | 425,902 | |
Federal Home Loan Mortgage Corp. | | | 2.500 | | | | 04/01/52 | | | | 498 | | | | 436,283 | |
Federal Home Loan Mortgage Corp. | | | 3.000 | | | | 11/01/51 | | | | 530 | | | | 478,713 | |
Federal Home Loan Mortgage Corp. | | | 3.000 | | | | 01/01/52 | | | | 1,136 | | | | 1,036,469 | |
Federal Home Loan Mortgage Corp. | | | 3.000 | | | | 01/01/52 | | | | 1,820 | | | | 1,640,222 | |
Federal Home Loan Mortgage Corp. | | | 3.000 | | | | 02/01/52 | | | | 1,676 | | | | 1,507,814 | |
Federal Home Loan Mortgage Corp. | | | 3.500 | | | | 03/01/52 | | | | 821 | | | | 768,646 | |
Federal Home Loan Mortgage Corp. | | | 3.500 | | | | 05/01/52 | | | | 924 | | | | 861,154 | |
Federal Home Loan Mortgage Corp. | | | 4.500 | | | | 10/01/39 | | | | 53 | | | | 53,604 | |
See Notes to Financial Statements.
60
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal Amount (000)# | | | Value | |
| | | | |
U.S. GOVERNMENT AGENCY OBLIGATIONS (Continued) | | | | | | | | | | | | | | | | |
Federal Home Loan Mortgage Corp. | | | 5.000% | | | | 04/01/34 | | | | 5 | | | $ | 4,951 | |
Federal Home Loan Mortgage Corp. | | | 5.000 | | | | 05/01/34 | | | | 10 | | | | 10,664 | |
Federal Home Loan Mortgage Corp. | | | 5.000 | | | | 10/01/35 | | | | 14 | | | | 14,673 | |
Federal Home Loan Mortgage Corp. | | | 5.000 | | | | 11/01/41 | | | | 115 | | | | 118,253 | |
Federal Home Loan Mortgage Corp. | | | 5.500 | | | | 12/01/33 | | | | 11 | | | | 11,044 | |
Federal Home Loan Mortgage Corp. | | | 5.500 | | | | 05/01/34 | | | | 1 | | | | 1,529 | |
Federal Home Loan Mortgage Corp. | | | 5.500 | | | | 07/01/34 | | | | 24 | | | | 24,967 | |
Federal Home Loan Mortgage Corp. | | | 5.500 | | | | 05/01/37 | | | | 4 | | | | 4,024 | |
Federal Home Loan Mortgage Corp. | | | 5.500 | | | | 10/01/37 | | | | 7 | | | | 7,433 | |
Federal Home Loan Mortgage Corp. | | | 5.500 | | | | 12/01/52 | | | | 356 | | | | 360,557 | |
Federal Home Loan Mortgage Corp. | | | 6.000 | | | | 01/01/34 | | | | 11 | | | | 11,702 | |
Federal Home Loan Mortgage Corp. | | | 6.000 | | | | 12/01/52 | | | | 550 | | | | 563,652 | |
Federal Home Loan Mortgage Corp. | | | 7.000 | | | | 10/01/31 | | | | —(r | ) | | | 183 | |
Federal Home Loan Mortgage Corp. | | | 7.000 | | | | 05/01/32 | | | | 3 | | | | 3,206 | |
Federal National Mortgage Assoc. | | | 1.500 | | | | 02/01/51 | | | | 966 | | | | 765,264 | |
Federal National Mortgage Assoc. | | | 1.500 | | | | 06/01/51 | | | | 920 | | | | 728,256 | |
Federal National Mortgage Assoc. | | | 2.000 | | | | 06/01/50 | | | | 1,622 | | | | 1,353,611 | |
Federal National Mortgage Assoc. | | | 2.000 | | | | 11/01/50 | | | | 2,720 | | | | 2,262,979 | |
Federal National Mortgage Assoc. | | | 2.000 | | | | 12/01/50 | | | | 1,200 | | | | 1,000,365 | |
Federal National Mortgage Assoc. | | | 2.000 | | | | 04/01/51 | | | | 3,831 | | | | 3,185,861 | |
Federal National Mortgage Assoc. | | | 2.500 | | | | 06/01/50 | | | | 459 | | | | 400,296 | |
Federal National Mortgage Assoc. | | | 2.500 | | | | 10/01/50 | | | | 1,840 | | | | 1,604,589 | |
Federal National Mortgage Assoc. | | | 2.500 | | | | 01/01/51 | | | | 1,495 | | | | 1,303,401 | |
Federal National Mortgage Assoc. | | | 2.500 | | | | 02/01/51 | | | | 495 | | | | 430,470 | |
Federal National Mortgage Assoc. | | | 2.500 | | | | 03/01/51 | | | | 410 | | | | 355,220 | |
Federal National Mortgage Assoc. | | | 2.500 | | | | 07/01/51 | | | | 2,161 | | | | 1,877,739 | |
Federal National Mortgage Assoc. | | | 2.500 | | | | 01/01/52 | | | | 960 | | | | 831,312 | |
Federal National Mortgage Assoc. | | | 2.500 | | | | 02/01/52 | | | | 453 | | | | 398,002 | |
Federal National Mortgage Assoc. | | | 2.500 | | | | 03/01/52 | | | | 611 | | | | 535,154 | |
Federal National Mortgage Assoc. | | | 3.000 | | | | 02/01/47 | | | | 897 | | | | 832,034 | |
Federal National Mortgage Assoc. | | | 3.000 | | | | 12/01/51 | | | | 1,294 | | | | 1,169,937 | |
Federal National Mortgage Assoc. | | | 3.000 | | | | 02/01/52 | | | | 408 | | | | 366,770 | |
Federal National Mortgage Assoc. | | | 3.000 | | | | 03/01/52 | | | | 2,512 | | | | 2,259,523 | |
Federal National Mortgage Assoc. | | | 3.500 | | | | 11/01/42 | | | | 1,110 | | | | 1,060,834 | |
Federal National Mortgage Assoc. | | | 3.500 | | | | 01/01/52 | | | | 374 | | | | 350,603 | |
Federal National Mortgage Assoc. | | | 3.500 | | | | 02/01/52 | | | | 1,148 | | | | 1,075,340 | |
Federal National Mortgage Assoc. | | | 3.500 | | | | 04/01/52 | | | | 1,495 | | | | 1,392,640 | |
Federal National Mortgage Assoc. | | | 4.000 | | | | 04/01/52 | | | | 1,643 | | | | 1,577,541 | |
Federal National Mortgage Assoc. | | | 4.000 | | | | 05/01/52 | | | | 2,323 | | | | 2,233,834 | |
Federal National Mortgage Assoc. | | | 4.500 | | | | 09/01/39 | | | | 41 | | | | 41,493 | |
Federal National Mortgage Assoc. | | | 4.500 | | | | 08/01/40 | | | | 38 | | | | 38,041 | |
Federal National Mortgage Assoc. | | | 4.500 | | | | 02/01/44 | | | | 51 | | | | 52,032 | |
Federal National Mortgage Assoc. | | | 4.500 | | | | 08/01/44 | | | | 121 | | | | 121,358 | |
Federal National Mortgage Assoc. | | | 4.500 | | | | 01/01/45 | | | | 96 | | | | 96,153 | |
See Notes to Financial Statements.
PGIM Balanced Fund 61
Schedule of Investments (continued)
as of September 30, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal Amount (000)# | | | Value | |
| | | | |
U.S. GOVERNMENT AGENCY OBLIGATIONS (Continued) | | | | | | | | | | | | | | | | |
Federal National Mortgage Assoc. | | | 4.500% | | | | 05/01/52 | | | | 427 | | | $ | 420,205 | |
Federal National Mortgage Assoc. | | | 4.500 | | | | 06/01/52 | | | | 1,014 | | | | 996,556 | |
Federal National Mortgage Assoc. | | | 5.000 | | | | TBA | | | | 500 | | | | 499,668 | |
Federal National Mortgage Assoc. | | | 5.000 | | | | 07/01/35 | | | | 9 | | | | 9,039 | |
Federal National Mortgage Assoc. | | | 5.000 | | | | 02/01/36 | | | | 21 | | | | 21,053 | |
Federal National Mortgage Assoc. | | | 5.000 | | | | 06/01/52 | | | | 397 | | | | 398,037 | |
Federal National Mortgage Assoc. | | | 5.000 | | | | 07/01/52 | | | | 2,129 | | | | 2,130,165 | |
Federal National Mortgage Assoc. | | | 5.500 | | | | 06/01/33 | | | | 4 | | | | 3,955 | |
Federal National Mortgage Assoc. | | | 5.500 | | | | 08/01/33 | | | | 9 | | | | 8,958 | |
Federal National Mortgage Assoc. | | | 5.500 | | | | 09/01/33 | | | | 12 | | | | 11,952 | |
Federal National Mortgage Assoc. | | | 5.500 | | | | 09/01/33 | | | | 21 | | | | 21,803 | |
Federal National Mortgage Assoc. | | | 5.500 | | | | 01/01/34 | | | | 9 | | | | 8,960 | |
Federal National Mortgage Assoc. | | | 5.500 | | | | 01/01/34 | | | | 9 | | | | 9,590 | |
Federal National Mortgage Assoc. | | | 5.500 | | | | 07/01/34 | | | | 16 | | | | 16,700 | |
Federal National Mortgage Assoc. | | | 5.500 | | | | 08/01/52 | | | | 272 | | | | 275,649 | |
Federal National Mortgage Assoc. | | | 5.500 | | | | 11/01/52 | | | | 3,551 | | | | 3,600,782 | |
Federal National Mortgage Assoc. | | | 6.000 | | | | 01/01/34 | | | | 3 | | | | 3,055 | |
Federal National Mortgage Assoc. | | | 6.000 | | | | 01/01/34 | | | | 59 | | | | 62,164 | |
Federal National Mortgage Assoc. | | | 6.000 | | | | 02/01/34 | | | | 4 | | | | 4,637 | |
Federal National Mortgage Assoc. | | | 6.000 | | | | 10/01/34 | | | | 1 | | | | 566 | |
Federal National Mortgage Assoc. | | | 6.000 | | | | 10/01/34 | | | | 4 | | | | 3,910 | |
Federal National Mortgage Assoc. | | | 6.000 | | | | 11/01/34 | | | | 7 | | | | 7,269 | |
Federal National Mortgage Assoc. | | | 6.000 | | | | 11/01/34 | | | | 14 | | | | 14,039 | |
Federal National Mortgage Assoc. | | | 6.000 | | | | 11/01/34 | | | | 20 | | | | 20,102 | |
Federal National Mortgage Assoc. | | | 6.000 | | | | 01/01/35 | | | | 32 | | | | 33,109 | |
Federal National Mortgage Assoc. | | | 6.000 | | | | 02/01/35 | | | | 19 | | | | 19,541 | |
Federal National Mortgage Assoc. | | | 6.000 | | | | 08/01/36 | | | | 9 | | | | 9,217 | |
Federal National Mortgage Assoc. | | | 6.000 | | | | 08/01/38 | | | | 2 | | | | 1,804 | |
Federal National Mortgage Assoc. | | | 6.000 | | | | 11/01/52 | | | | 633 | | | | 648,021 | |
Federal National Mortgage Assoc. | | | 6.000 | | | | 11/01/52 | | | | 910 | | | | 933,445 | |
Federal National Mortgage Assoc. | | | 6.000 | | | | 12/01/52 | | | | 199 | | | | 203,925 | |
Federal National Mortgage Assoc. | | | 6.000 | | | | 04/01/53 | | | | 427 | | | | 436,995 | |
Federal National Mortgage Assoc. | | | 6.500 | | | | 07/01/29 | | | | 1 | | | | 900 | |
Federal National Mortgage Assoc. | | | 6.500 | | | | 07/01/32 | | | | 7 | | | | 7,243 | |
Federal National Mortgage Assoc. | | | 6.500 | | | | 04/01/33 | | | | 4 | | | | 4,130 | |
Federal National Mortgage Assoc. | | | 6.500 | | | | 01/01/34 | | | | 4 | | | | 3,702 | |
Federal National Mortgage Assoc. | | | 6.500 | | | | 10/01/36 | | | | 10 | | | | 10,310 | |
Federal National Mortgage Assoc. | | | 6.500 | | | | 09/01/37 | | | | 31 | | | | 32,234 | |
Federal National Mortgage Assoc. | | | 6.500 | | | | 10/01/37 | | | | 28 | | | | 29,352 | |
Federal National Mortgage Assoc. | | | 6.500 | | | | 01/01/53 | | | | 105 | | | | 108,317 | |
Federal National Mortgage Assoc.(k) | | | 6.625 | | | | 11/15/30 | | | | 200 | | | | 231,375 | |
Federal National Mortgage Assoc. | | | 7.000 | | | | 06/01/32 | | | | 4 | | | | 3,669 | |
Federal National Mortgage Assoc.(k) | | | 7.125 | | | | 01/15/30 | | | | 452 | | | | 526,235 | |
Federal National Mortgage Assoc. | | | 7.500 | | | | 09/01/30 | | | | —(r | ) | | | 345 | |
See Notes to Financial Statements.
62
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal Amount (000)# | | | Value | |
| | | | |
U.S. GOVERNMENT AGENCY OBLIGATIONS (Continued) | | | | | | | | | | | | | | | | |
Federal National Mortgage Assoc. | | | 8.500% | | | | 02/01/28 | | | | —(r | ) | | $ | 267 | |
Government National Mortgage Assoc. | | | 2.000 | | | | 12/20/50 | | | | 478 | | | | 405,985 | |
Government National Mortgage Assoc. | | | 2.000 | | | | 02/20/51 | | | | 508 | | | | 430,727 | |
Government National Mortgage Assoc. | | | 2.500 | | | | 09/20/50 | | | | 892 | | | | 788,085 | |
Government National Mortgage Assoc. | | | 2.500 | | | | 03/20/51 | | | | 501 | | | | 442,287 | |
Government National Mortgage Assoc. | | | 2.500 | | | | 08/20/51 | | | | 591 | | | | 520,618 | |
Government National Mortgage Assoc. | | | 2.500 | | | | 09/20/51 | | | | 497 | | | | 437,620 | |
Government National Mortgage Assoc. | | | 3.000 | | | | 09/20/43 | | | | 84 | | | | 77,957 | |
Government National Mortgage Assoc. | | | 3.000 | | | | 01/20/44 | | | | 26 | | | | 23,992 | |
Government National Mortgage Assoc. | | | 3.000 | | | | 03/15/45 | | | | 54 | | | | 49,297 | |
Government National Mortgage Assoc. | | | 3.000 | | | | 05/20/45 | | | | 80 | | | | 74,114 | |
Government National Mortgage Assoc. | | | 3.000 | | | | 08/20/45 | | | | 149 | | | | 138,369 | |
Government National Mortgage Assoc. | | | 3.000 | | | | 06/20/46 | | | | 158 | | | | 146,511 | |
Government National Mortgage Assoc. | | | 3.000 | | | | 03/20/47 | | | | 89 | | | | 82,392 | |
Government National Mortgage Assoc. | | | 3.000 | | | | 12/20/48 | | | | 442 | | | | 407,841 | |
Government National Mortgage Assoc. | | | 3.000 | | | | 06/20/51 | | | | 523 | | | | 477,313 | |
Government National Mortgage Assoc. | | | 3.000 | | | | 08/20/51 | | | | 1,655 | | | | 1,510,449 | |
Government National Mortgage Assoc. | | | 3.500 | | | | 12/20/51 | | | | 2,015 | | | | 1,896,252 | |
Government National Mortgage Assoc. | | | 5.000 | | | | 10/20/37 | | | | 7 | | | | 7,676 | |
Government National Mortgage Assoc. | | | 5.000 | | | | 04/20/45 | | | | 42 | | | | 42,738 | |
Government National Mortgage Assoc. | | | 5.000 | | | | 09/20/52 | | | | 449 | | | | 450,544 | |
Government National Mortgage Assoc. | | | 5.500 | | | | 07/15/33 | | | | 7 | | | | 7,482 | |
Government National Mortgage Assoc. | | | 5.500 | | | | 12/15/33 | | | | 3 | | | | 2,950 | |
Government National Mortgage Assoc. | | | 5.500 | | | | 09/15/34 | | | | 72 | | | | 75,221 | |
Government National Mortgage Assoc. | | | 5.500 | | | | 01/15/36 | | | | 26 | | | | 27,201 | |
Government National Mortgage Assoc. | | | 5.500 | | | | 11/20/52 | | | | 500 | | | | 505,398 | |
Government National Mortgage Assoc. | | | 6.000 | | | | 02/20/53 | | | | 488 | | | | 497,747 | |
Government National Mortgage Assoc. | | | 6.000 | | | | 06/20/53 | | | | 420 | | | | 428,356 | |
Government National Mortgage Assoc. | | | 6.500 | | | | TBA | | | | 500 | | | | 511,568 | |
Government National Mortgage Assoc. | | | 6.500 | | | | 07/15/32 | | | | 1 | | | | 927 | |
Government National Mortgage Assoc. | | | 6.500 | | | | 08/15/32 | | | | —(r | ) | | | 168 | |
Government National Mortgage Assoc. | | | 6.500 | | | | 08/15/32 | | | | 1 | | | | 513 | |
Government National Mortgage Assoc. | | | 6.500 | | | | 08/15/32 | | | | 1 | | | | 914 | |
Government National Mortgage Assoc. | | | 6.500 | | | | 08/15/32 | | | | 5 | | | | 4,792 | |
Government National Mortgage Assoc. | | | 7.000 | | | | 05/15/31 | | | | 2 | | | | 2,094 | |
Government National Mortgage Assoc. | | | 7.500 | | | | 04/15/29 | | | | —(r | ) | | | 356 | |
Government National Mortgage Assoc. | | | 8.000 | | | | 06/15/25 | | | | —(r | ) | | | 334 | |
Tennessee Valley Authority, Sr. Unsec’d. Notes | | | 7.125 | | | | 05/01/30 | | | | 90 | | | | 104,966 | |
| | | | | | | | | | | | | | | | |
| | | | |
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(cost $67,886,661) | | | | | | | | | | | | | | | 68,352,026 | |
| | | | | | | | | | | | | | | | |
| | | | |
U.S. TREASURY OBLIGATIONS 4.0% | | | | | | | | | | | | | | | | |
U.S. Treasury Bonds | | | 1.625 | | | | 11/15/50 | | | | 3,465 | | | | 2,037,312 | |
U.S. Treasury Bonds | | | 1.875 | | | | 02/15/51 | | | | 370 | | | | 231,886 | |
See Notes to Financial Statements.
PGIM Balanced Fund 63
Schedule of Investments (continued)
as of September 30, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal Amount (000)# | | | Value | |
| | | | |
U.S. TREASURY OBLIGATIONS (Continued) | | | | | | | | | | | | | | | | |
U.S. Treasury Bonds | | | 2.000% | | | | 11/15/41 | | | | 7,120 | | | $ | 5,236,538 | |
U.S. Treasury Bonds(h)(k) | | | 2.250 | | | | 05/15/41 | | | | 12,240 | | | | 9,487,913 | |
U.S. Treasury Bonds | | | 2.375 | | | | 11/15/49 | | | | 1,605 | | | | 1,140,804 | |
U.S. Treasury Bonds | | | 3.000 | | | | 02/15/49 | | | | 10,405 | | | | 8,423,173 | |
U.S. Treasury Notes | | | 2.750 | | | | 08/15/32 | | | | 4,830 | | | | 4,514,541 | |
U.S. Treasury Notes | | | 3.625 | | | | 09/30/31 | | | | 2,790 | | | | 2,784,769 | |
U.S. Treasury Notes | | | 3.875 | | | | 08/15/33 | | | | 1,640 | | | | 1,653,581 | |
U.S. Treasury Strips Coupon | | | 2.052(s) | | | | 11/15/43 | | | | 5,730 | | | | 2,465,914 | |
U.S. Treasury Strips Coupon(k) | | | 2.374(s) | | | | 05/15/43 | | | | 550 | | | | 242,107 | |
U.S. Treasury Strips Coupon | | | 2.450(s) | | | | 02/15/45 | | | | 90 | | | | 36,541 | |
U.S. Treasury Strips Coupon | | | 2.732(s) | | | | 08/15/30 | | | | 286 | | | | 229,269 | |
U.S. Treasury Strips Coupon | | | 3.741(s) | | | | 11/15/41 | | | | 700 | | | | 332,828 | |
U.S. Treasury Strips Coupon | | | 4.002(s) | | | | 05/15/41 | | | | 30 | | | | 14,627 | |
U.S. Treasury Strips Coupon | | | 4.608(s) | | | | 11/15/48 | | | | 60 | | | | 20,564 | |
U.S. Treasury Strips Coupon | | | 4.628(s) | | | | 11/15/40 | | | | 4,665 | | | | 2,330,313 | |
U.S. Treasury Strips Coupon | | | 4.684(s) | | | | 11/15/42 | | | | 735 | | | | 330,980 | |
U.S. Treasury Strips Coupon | | | 4.924(s) | | | | 02/15/49 | | | | 170 | | | | 57,813 | |
U.S. Treasury Strips Coupon | | | 5.331(s) | | | | 02/15/40 | | | | 275 | | | | 142,882 | |
| | | | | | | | | | | | | | | | |
| | | | |
TOTAL U.S. TREASURY OBLIGATIONS
(cost $46,729,264) | | | | | | | | | | | | | | | 41,714,355 | |
| | | | | | | | | | | | | | | | |
| | | | |
TOTAL LONG-TERM INVESTMENTS
(cost $815,938,331) | | | | | | | | | | | | | | | 1,016,460,476 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | Shares | | | | |
| | | | |
SHORT-TERM INVESTMENTS 1.3% | | | | | | | | | | | | | | | | |
| | | | |
AFFILIATED MUTUAL FUNDS 1.3% | | | | | | | | | | | | | | | | |
PGIM Core Government Money Market Fund (7-day effective yield 5.140%)(wa) | | | | 9,963,794 | | | | 9,963,794 | |
PGIM Institutional Money Market Fund (7-day effective yield 5.160%)
(cost $3,198,680; includes $3,191,264 of cash collateral for securities on loan)(b)(wa) | | | | | | | | | | | 3,200,091 | | | | 3,198,811 | |
| | | | | | | | | | | | | | | | |
| | | | |
TOTAL AFFILIATED MUTUAL FUNDS
(cost $13,162,474) | | | | | | | | | | | | | | | 13,162,605 | |
| | | | | | | | | | | | | | | | |
See Notes to Financial Statements.
64
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal Amount (000)# | | | Value | |
| | | | |
U.S. TREASURY OBLIGATION(k)(n) 0.0% | | | | | | | | | | | | | | | | |
U.S. Treasury Bills
(cost $49,480) | | | 4.799% | | | | 12/19/24 | | | | 50 | | | $ | 49,506 | |
| | | | | | | | | | | | | | | | |
| | | | |
TOTAL SHORT-TERM INVESTMENTS
(cost $13,211,954) | | | | | | | | | | | | | | | 13,212,111 | |
| | | | | | | | | | | | | | | | |
| | | | |
TOTAL INVESTMENTS, BEFORE OPTION WRITTEN
(cost $829,150,285) | | | | | | | | | | | | | | | 1,029,672,587 | |
| | | | | | | | | | | | | | | | |
| | | | |
OPTION WRITTEN*~ (0.0)%
(premiums received $7,184) | | | | | | | | | | | | | | | (2,309 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
TOTAL INVESTMENTS, NET OF OPTION WRITTEN 99.9%
(cost $829,143,101) | | | | | | | | | | | | | | | 1,029,670,278 | |
Other assets in excess of liabilities(z) 0.1% | | | | | | | | | | | | | | | 780,244 | |
| | | | | | | | | | | | | | | | |
| | | | |
NET ASSETS 100.0% | | | | | | | | | | | | | | $ | 1,030,450,522 | |
| | | | | | | | | | | | | | | | |
Below is a list of the abbreviation(s) used in the annual report:
BRL—Brazilian Real
CAD—Canadian Dollar
CLP—Chilean Peso
CNH—Chinese Renminbi
COP—Colombian Peso
CZK—Czech Koruna
EUR—Euro
GBP—British Pound
HUF—Hungarian Forint
IDR—Indonesian Rupiah
INR—Indian Rupee
KRW—South Korean Won
MXN—Mexican Peso
PEN—Peruvian Nuevo Sol
PHP—Philippine Peso
PLN—Polish Zloty
SGD—Singapore Dollar
THB—Thai Baht
TRY—Turkish Lira
TWD—New Taiwanese Dollar
USD—US Dollar
ZAR—South African Rand
144A—Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and, pursuant to the requirements of Rule 144A, may not be resold except to qualified institutional buyers.
A—Annual payment frequency for swaps
ADR—American Depositary Receipt
See Notes to Financial Statements.
PGIM Balanced Fund 65
Schedule of Investments (continued)
as of September 30, 2024
BABs—Build America Bonds
BARC—Barclays Bank PLC
BNP—BNP Paribas S.A.
BOA—Bank of America, N.A.
CDX—Credit Derivative Index
CGM—Citigroup Global Markets, Inc.
CITI—Citibank, N.A.
CLO—Collateralized Loan Obligation
CME—Chicago Mercantile Exchange
CVA—Certificate Van Aandelen (Bearer)
DAC—Designated Activity Company
DB—Deutsche Bank AG
EAFE—Europe, Australasia, Far East
EMTN—Euro Medium Term Note
ETF—Exchange-Traded Fund
EURIBOR—Euro Interbank Offered Rate
GMTN—Global Medium Term Note
GS—Goldman Sachs & Co. LLC
GSI—Goldman Sachs International
HSBC—HSBC Bank PLC
IO—Interest Only (Principal amount represents notional)
JPM—JPMorgan Chase Bank N.A.
LP—Limited Partnership
M—Monthly payment frequency for swaps
MLP—Master Limited Partnership
MSCI—Morgan Stanley Capital International
MSI—Morgan Stanley & Co International PLC
MTN—Medium Term Note
OTC—Over-the-counter
PIK—Payment-in-Kind
PJSC—Public Joint-Stock Company
PRFC—Preference Shares
Q—Quarterly payment frequency for swaps
REITs—Real Estate Investment Trust
REMIC—Real Estate Mortgage Investment Conduit
SCB—Standard Chartered Bank
SOFR—Secured Overnight Financing Rate
SONIA—Sterling Overnight Index Average
SSB—State Street Bank & Trust Company
T—Swap payment upon termination
TBA—To Be Announced
TD—The Toronto-Dominion Bank
UAG—UBS AG
USOIS—United States Overnight Index Swap
| * | Non-income producing security. |
| # | Principal or notional amount is shown in U.S. dollars unless otherwise stated. |
| ~ | See tables subsequent to the Schedule of Investments for options detail. Options with maturity dates greater than one year from date of acquisition would be considered long-term investments. |
| ^ | Indicates a Level 3 instrument. The aggregate value of Level 3 instruments is $78,134 and 0.0% of net assets. |
See Notes to Financial Statements.
66
| (a) | All or a portion of security is on loan. The aggregate market value of such securities, including those sold and pending settlement, is $3,124,445; cash collateral of $3,191,264 (included in liabilities) was received with which the Fund purchased highly liquid short-term investments. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the Fund may reflect a collateral value that is less than the market value of the loaned securities and such shortfall is remedied the following business day. |
| (b) | Represents security, or portion thereof, purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
| (c) | Variable rate instrument. The interest rate shown reflects the rate in effect at September 30, 2024. |
| (cc) | Variable rate instrument. The rate shown is based on the latest available information as of September 30, 2024. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description. |
| (d) | Represents issuer in default on interest payments and/or principal repayment. Non-income producing security. Such securities may be post-maturity. |
| (f) | Indicates a restricted security that is acquired in unregistered, private sales from the issuing company or from an affiliate of the issuer and is considered restricted as to disposition under federal securities law; the aggregate original cost of such securities is $955,068. The aggregate value of $467,222 is 0.0% of net assets. |
| (ff) | Variable rate security. Security may be issued at a fixed coupon rate, which converts to a variable rate at a specified date. Rate shown is the rate in effect as of period end. |
| (h) | Represents security, or a portion thereof, segregated as collateral for OTC derivatives. |
| (k) | Represents security, or a portion thereof, segregated as collateral for centrally cleared/exchange-traded derivatives. |
| (n) | Rate shown reflects yield to maturity at purchased date. |
| (oo) | Perpetual security. Maturity date represents next call date. |
| (p) | Represents a security with a delayed settlement and therefore the interest rate is not available until settlement which is after the period end. |
| (r) | Principal or notional amount is less than $500 par. |
| (s) | Represents zero coupon bond or principal only security. Rate represents yield to maturity at purchase date. |
| (wa) | Represents investments in Funds affiliated with the Manager. |
| (z) | Includes net unrealized appreciation/(depreciation) and/or market value of the below holdings which are excluded from the Schedule of Investments: |
Unfunded corporate bond commitment outstanding at September 30, 2024:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Issuer | | Principal
Amount
(000)# | | | Current
Value | | | Unrealized
Appreciation | | | Unrealized
Depreciation |
| | | | | | | | |
New Generation Gas Gathering LLC, Sr. Sec’d. Notes, 144A, —%(p), Maturity Date 09/30/29 (cost $143,756) | | | 146 | | | $ | 143,756 | | | | | | | $ | — | | | | | | | | | $ | — | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Option Written:
OTC Swaption
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Description | | Call/
Put | | Counterparty | | Expiration
Date | | | Strike | | | Receive | | | Pay | | | Notional
Amount
(000)# | | | Value |
| | | | | | | | | | |
CDX.NA.IG.42.V1, 06/20/29 | | Put | | BNP | | | 11/20/24 | | | | 0.75% | | | | 1.00%(Q) | | | | CDX.NA.IG.42. V1(Q) | | | | 9,270 | | | | | $ | (2,309 | ) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
(premiums received $7,184) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
See Notes to Financial Statements.
PGIM Balanced Fund 67
Schedule of Investments (continued)
as of September 30, 2024
Futures contracts outstanding at September 30, 2024:
| | | | | | | | | | | | | | | | | | | | | | |
Number of
Contracts | | Type | | Expiration
Date | | | Current
Notional
Amount | | | Value /
Unrealized
Appreciation
(Depreciation) | |
| | | | | |
Long Positions: | | | | | | | | | | | | | | | | | | | | |
220 | | 2 Year U.S. Treasury Notes | | | Dec. 2024 | | | $ | 45,813,281 | | | | | | | $ | 37,276 | | | | | |
61 | | 10 Year U.S. Treasury Notes | | | Dec. 2024 | | | | 6,971,156 | | | | | | | | (554 | ) | | | | |
158 | | 10 Year U.S. Ultra Treasury Notes | | | Dec. 2024 | | | | 18,690,907 | | | | | | | | (38,570 | ) | | | | |
33 | | 30 Year U.S. Ultra Treasury Bonds | | | Dec. 2024 | | | | 4,392,094 | | | | | | | | (80,278 | ) | | | | |
6 | | Mini MSCI EAFE Index | | | Dec. 2024 | | | | 746,340 | | | | | | | | 15,213 | | | | | |
6 | | Mini MSCI Emerging Markets Index | | | Dec. 2024 | | | | 351,810 | | | | | | | | 22,784 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | | | | | | | | | | | | | | | | (44,129 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Short Positions: | | | | | | | | | | | | | | | | | | | | |
5 | | 3 Month CME SOFR | | | Dec. 2024 | | | | 1,190,875 | | | | | | | | (1,009 | ) | | | | |
16 | | 5 Year Euro-Bobl | | | Dec. 2024 | | | | 2,138,139 | | | | | | | | (16,668 | ) | | | | |
23 | | 5 Year U.S. Treasury Notes | | | Dec. 2024 | | | | 2,527,305 | | | | | | | | 8,897 | | | | | |
6 | | 10 Year Euro-Bund | | | Dec. 2024 | | | | 901,117 | | | | | | | | (8,855 | ) | | | | |
38 | | 20 Year U.S. Treasury Bonds | | | Dec. 2024 | | | | 4,719,125 | | | | | | | | 47,304 | | | | | |
3 | | Euro Schatz Index | | | Dec. 2024 | | | | 357,906 | | | | | | | | (1,772 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 27,897 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | | | | | | | | | | | | | | | $ | (16,232 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Forward foreign currency exchange contracts outstanding at September 30, 2024:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Purchase Contracts | | Counterparty | | Notional Amount (000) | | | Value at
Settlement
Date | | | Current
Value | | | Unrealized
Appreciation | | | Unrealized
Depreciation | |
| | | | | | |
OTC Forward Foreign Currency Exchange Contracts: | | | | | | | | | | | | | | | | | | | | | | | | | |
Brazilian Real, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 10/02/24 | | BARC | | | BRL | | | | 662 | | | $ | 122,000 | | | $ | 121,484 | | | $ | — | | | | | | | $ | (516 | ) | | | | |
Expiring 10/02/24 | | DB | | | BRL | | | | 4,982 | | | | 903,898 | | | | 914,362 | | | | 10,464 | | | | | | | | — | | | | | |
Expiring 11/04/24 | | GSI | | | BRL | | | | 5,665 | | | | 1,018,393 | | | | 1,035,521 | | | | 17,128 | | | | | | | | — | | | | | |
Chilean Peso, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 12/18/24 | | GSI | | | CLP | | | | 132,198 | | | | 140,136 | | | | 146,912 | | | | 6,776 | | | | | | | | — | | | | | |
Chinese Renminbi, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 11/12/24 | | BARC | | | CNH | | | | 869 | | | | 122,000 | | | | 124,419 | | | | 2,419 | | | | | | | | — | | | | | |
Colombian Peso, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 12/18/24 | | CITI | | | COP | | | | 774,362 | | | | 177,994 | | | | 182,278 | | | | 4,284 | | | | | | | | — | | | | | |
Expiring 12/18/24 | | CITI | | | COP | | | | 765,314 | | | | 177,870 | | | | 180,148 | | | | 2,278 | | | | | | | | — | | | | | |
Czech Koruna, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 10/21/24 | | BARC | | | CZK | | | | 8,544 | | | | 379,000 | | | | 377,391 | | | | — | | | | | | | | (1,609 | ) | | | | |
Euro, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 10/21/24 | | GSI | | | EUR | | | | 2,098 | | | | 2,306,438 | | | | 2,337,554 | | | | 31,116 | | | | | | | | — | | | | | |
Expiring 10/21/24 | | SSB | | | EUR | | | | 2,768 | | | | 3,058,961 | | | | 3,083,647 | | | | 24,686 | | | | | | | | — | | | | | |
Hungarian Forint, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 10/21/24 | | BOA | | | HUF | | | | 42,793 | | | | 118,200 | | | | 119,796 | | | | 1,596 | | | | | | | | — | | | | | |
See Notes to Financial Statements.
68
Forward foreign currency exchange contracts outstanding at September 30, 2024 (continued):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Purchase Contracts | | Counterparty | | Notional Amount (000) | | | Value at
Settlement
Date | | | Current
Value | | | Unrealized
Appreciation | | | Unrealized
Depreciation | |
| | | | |
OTC Forward Foreign Currency Exchange Contracts (cont’d.): | | | | | | | | | | | | | | | | | |
Indian Rupee, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 12/18/24 | | GSI | | | INR | | | | 43,872 | | | $ | 523,000 | | | $ | 521,549 | | | $ | — | | | | | | | $ | (1,451 | ) | | | | |
Expiring 12/18/24 | | HSBC | | | INR | | | | 71,953 | | | | 853,590 | | | | 855,365 | | | | 1,775 | | | | | | | | — | | | | | |
Expiring 12/18/24 | | HSBC | | | INR | | | | 31,456 | | | | 374,000 | | | | 373,946 | | | | — | | | | | | | | (54 | ) | | | | |
Indonesian Rupiah, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 12/18/24 | | BOA | | | IDR | | | | 3,903,744 | | | | 256,000 | | | | 256,244 | | | | 244 | | | | | | | | — | | | | | |
Expiring 12/18/24 | | MSI | | | IDR | | | | 19,594,064 | | | | 1,266,331 | | | | 1,286,168 | | | | 19,837 | | | | | | | | — | | | | | |
Mexican Peso, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 12/18/24 | | BARC | | | MXN | | | | 11,710 | | | | 579,715 | | | | 587,525 | | | | 7,810 | | | | | | | | — | | | | | |
Philippine Peso, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 12/18/24 | | HSBC | | | PHP | | | | 42,842 | | | | 759,404 | | | | 763,042 | | | | 3,638 | | | | | | | | — | | | | | |
Polish Zloty, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 10/21/24 | | BARC | | | PLN | | | | 1,189 | | | | 310,000 | | | | 308,686 | | | | — | | | | | | | | (1,314 | ) | | | | |
Expiring 10/21/24 | | CITI | | | PLN | | | | 752 | | | | 190,794 | | | | 195,281 | | | | 4,487 | | | | | | | | — | | | | | |
South African Rand, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 12/18/24 | | MSI | | | ZAR | | | | 4,554 | | | | 256,000 | | | | 261,825 | | | | 5,825 | | | | | | | | — | | | | | |
Expiring 12/18/24 | | TD | | | ZAR | | | | 2,208 | | | | 122,000 | | | | 126,959 | | | | 4,959 | | | | | | | | — | | | | | |
South Korean Won, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 12/18/24 | | CITI | | | KRW | | | | 697,258 | | | | 527,000 | | | | 530,790 | | | | 3,790 | | | | | | | | — | | | | | |
Expiring 12/18/24 | | CITI | | | KRW | | | | 401,450 | | | | 301,000 | | | | 305,605 | | | | 4,605 | | | | | | | | — | | | | | |
Expiring 12/18/24 | | HSBC | | | KRW | | | | 388,272 | | | | 298,000 | | | | 295,575 | | | | — | | | | | | | | (2,425 | ) | | | | |
Thai Baht, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 12/18/24 | | CITI | | | THB | | | | 3,946 | | | | 122,000 | | | | 123,288 | | | | 1,288 | | | | | | | | — | | | | | |
Expiring 12/18/24 | | HSBC | | | THB | | | | 9,810 | | | | 305,000 | | | | 306,468 | | | | 1,468 | | | | | | | | — | | | | | |
Expiring 12/18/24 | | JPM | | | THB | | | | 8,744 | | | | 266,000 | | | | 273,171 | | | | 7,171 | | | | | | | | — | | | | | |
Expiring 12/18/24 | | JPM | | | THB | | | | 6,473 | | | | 196,047 | | | | 202,232 | | | | 6,185 | | | | | | | | — | | | | | |
Expiring 12/18/24 | | SCB | | | THB | | | | 8,696 | | | | 263,000 | | | | 271,667 | | | | 8,667 | | | | | | | | — | | | | | |
Turkish Lira, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 10/02/24 | | HSBC | | | TRY | | | | 7,785 | | | | 220,000 | | | | 227,189 | | | | 7,189 | | | | | | | | — | | | | | |
Expiring 10/09/24 | | HSBC | | | TRY | | | | 21,216 | | | | 596,000 | | | | 614,710 | | | | 18,710 | | | | | | | | — | | | | | |
Expiring 10/23/24 | | BOA | | | TRY | | | | 16,873 | | | | 478,405 | | | | 481,341 | | | | 2,936 | | | | | | | | — | | | | | |
Expiring 10/30/24 | | BARC | | | TRY | | | | 7,803 | | | | 220,576 | | | | 220,661 | | | | 85 | | | | | | | | — | | | | | |
Expiring 11/05/24 | | HSBC | | | TRY | | | | 8,071 | | | | 227,456 | | | | 226,966 | | | | — | | | | | | | | (490 | ) | | | | |
Expiring 12/18/24 | | BARC | | | TRY | | | | 9,474 | | | | 244,328 | | | | 254,397 | | | | 10,069 | | | | | | | | — | | | | | |
Expiring 12/18/24 | | BARC | | | TRY | | | | 7,136 | | | | 184,242 | | | | 191,637 | | | | 7,395 | | | | | | | | — | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | | | $ | 18,464,778 | | | $ | 18,685,799 | | | | 228,880 | | | | | | | | (7,859 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
See Notes to Financial Statements.
PGIM Balanced Fund 69
Schedule of Investments (continued)
as of September 30, 2024
Forward foreign currency exchange contracts outstanding at September 30, 2024 (continued):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Sale Contracts | | Counterparty | | Notional Amount (000) | | | Value at
Settlement
Date | | | Current
Value | | | Unrealized
Appreciation | | | Unrealized
Depreciation | |
| | | | | | |
OTC Forward Foreign Currency Exchange Contracts: | | | | | | | | | | | | | | | | | | | | | | | | | |
Brazilian Real, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 10/02/24 | | GSI | | | BRL | | | | 5,644 | | | $ | 1,018,388 | | | $ | 1,035,846 | | | $ | — | | | | | | | $ | (17,458 | ) | | | | |
British Pound, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 10/21/24 | | BARC | | | GBP | | | | 126 | | | | 162,047 | | | | 168,676 | | | | — | | | | | | | | (6,629 | ) | | | | |
Expiring 10/21/24 | | SSB | | | GBP | | | | 147 | | | | 191,378 | | | | 196,308 | | | | — | | | | | | | | (4,930 | ) | | | | |
Expiring 10/21/24 | | TD | | | GBP | | | | 2,345 | | | | 3,043,173 | | | | 3,134,468 | | | | — | | | | | | | | (91,295 | ) | | | | |
Canadian Dollar, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 10/21/24 | | HSBC | | | CAD | | | | 146 | | | | 106,903 | | | | 107,921 | | | | — | | | | | | | | (1,018 | ) | | | | |
Chilean Peso, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 12/18/24 | | TD | | | CLP | | | | 246,147 | | | | 270,000 | | | | 273,543 | | | | — | | | | | | | | (3,543 | ) | | | | |
Chinese Renminbi, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 11/12/24 | | MSI | | | CNH | | | | 23,670 | | | | 3,323,449 | | | | 3,390,373 | | | | — | | | | | | | | (66,924 | ) | | | | |
Expiring 11/12/24 | | MSI | | | CNH | | | | 2,950 | | | | 414,000 | | | | 422,509 | | | | — | | | | | | | | (8,509 | ) | | | | |
Expiring 11/12/24 | | MSI | | | CNH | | | | 2,927 | | | | 411,000 | | | | 419,288 | | | | — | | | | | | | | (8,288 | ) | | | | |
Colombian Peso, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 12/18/24 | | BARC | | | COP | | | | 517,250 | | | | 122,000 | | | | 121,756 | | | | 244 | | | | | | | | — | | | | | |
Expiring 12/18/24 | | DB | | | COP | | | | 721,756 | | | | 168,810 | | | | 169,895 | | | | — | | | | | | | | (1,085 | ) | | | | |
Expiring 12/18/24 | | DB | | | COP | | | | 698,468 | | | | 162,190 | | | | 164,413 | | | | — | | | | | | | | (2,223 | ) | | | | |
Expiring 12/18/24 | | GSI | | | COP | | | | 1,103,387 | | | | 262,000 | | | | 259,726 | | | | 2,274 | | | | | | | | — | | | | | |
Expiring 12/18/24 | | GSI | | | COP | | | | 806,268 | | | | 190,589 | | | | 189,788 | | | | 801 | | | | | | | | — | | | | | |
Czech Koruna, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 10/21/24 | | HSBC | | | CZK | | | | 5,666 | | | | 250,000 | | | | 250,272 | | | | — | | | | | | | | (272 | ) | | | | |
Expiring 10/21/24 | | MSI | | | CZK | | | | 34,405 | | | | 1,481,692 | | | | 1,519,668 | | | | — | | | | | | | | (37,976 | ) | | | | |
Euro, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 10/21/24 | | CITI | | | EUR | | | | 282 | | | | 310,355 | | | | 314,724 | | | | — | | | | | | | | (4,369 | ) | | | | |
Expiring 10/21/24 | | GSI | | | EUR | | | | 4,782 | | | | 5,238,117 | | | | 5,328,467 | | | | — | | | | | | | | (90,350 | ) | | | | |
Expiring 10/21/24 | | HSBC | | | EUR | | | | 4,782 | | | | 5,234,893 | | | | 5,328,467 | | | | — | | | | | | | | (93,574 | ) | | | | |
Expiring 10/21/24 | | SSB | | | EUR | | | | 6,940 | | | | 7,479,374 | | | | 7,732,538 | | | | — | | | | | | | | (253,164 | ) | | | | |
Expiring 10/21/24 | | SSB | | | EUR | | | | 5,210 | | | | 5,695,661 | | | | 5,804,481 | | | | — | | | | | | | | (108,820 | ) | | | | |
Expiring 10/21/24 | | TD | | | EUR | | | | 817 | | | | 891,812 | | | | 910,395 | | | | — | | | | | | | | (18,583 | ) | | | | |
Hungarian Forint, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 10/21/24 | | UAG | | | HUF | | | | 97,480 | | | | 267,000 | | | | 272,890 | | | | — | | | | | | | | (5,890 | ) | | | | |
Mexican Peso, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 12/18/24 | | JPM | | | MXN | | | | 4,374 | | | | 224,000 | | | | 219,462 | | | | 4,538 | | | | | | | | — | | | | | |
New Taiwanese Dollar, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 12/18/24 | | BOA | | | TWD | | | | 10,103 | | | | 319,000 | | | | 322,235 | | | | — | | | | | | | | (3,235 | ) | | | | |
Expiring 12/18/24 | | CITI | | | TWD | | | | 35,013 | | | | 1,088,884 | | | | 1,116,737 | | | | — | | | | | | | | (27,853 | ) | | | | |
Expiring 12/18/24 | | JPM | | | TWD | | | | 18,492 | | | | 584,524 | | | | 589,800 | | | | — | | | | | | | | (5,276 | ) | | | | |
Expiring 12/18/24 | | JPM | | | TWD | | | | 11,750 | | | | 372,000 | | | | 374,752 | | | | — | | | | | | | | (2,752 | ) | | | | |
Expiring 12/18/24 | | MSI | | | TWD | | | | 20,768 | | | | 658,000 | | | | 662,407 | | | | — | | | | | | | | (4,407 | ) | | | | |
Peruvian Nuevo Sol, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 12/18/24 | | BOA | | | PEN | | | | 1,356 | | | | 356,712 | | | | 365,626 | | | | — | | | | | | | | (8,914 | ) | | | | |
See Notes to Financial Statements.
70
Forward foreign currency exchange contracts outstanding at September 30, 2024 (continued):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Sale Contracts | | Counterparty | | | Notional Amount (000) | | | Value at
Settlement
Date | | | Current
Value | | | Unrealized
Appreciation | | | Unrealized
Depreciation | |
| | | | | | |
OTC Forward Foreign Currency Exchange Contracts (cont’d.): | | | | | | | | | | | | | | | | | | | | | | | | | |
Philippine Peso, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 12/18/24 | | | CITI | | | | PHP | | | | 17,618 | | | $ | 315,000 | | | $ | 313,787 | | | $ | 1,213 | | | | | | | $ | — | | | | | |
Expiring 12/18/24 | | | HSBC | | | | PHP | | | | 10,505 | | | | 187,083 | | | | 187,109 | | | | — | | | | | | | | (26 | ) | | | | |
Expiring 12/18/24 | | | SCB | | | | PHP | | | | 32,364 | | | | 578,000 | | | | 576,419 | | | | 1,581 | | | | | | | | — | | | | | |
Polish Zloty, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 10/21/24 | | | BOA | | | | PLN | | | | 956 | | | | 242,000 | | | | 248,164 | | | | — | | | | | | | | (6,164 | ) | | | | |
Singapore Dollar, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 12/18/24 | | | SCB | | | | SGD | | | | 1,147 | | | | 882,754 | | | | 896,132 | | | | — | | | | | | | | (13,378 | ) | | | | |
South Korean Won, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 12/18/24 | | | BOA | | | | KRW | | | | 326,449 | | | | 244,034 | | | | 248,511 | | | | — | | | | | | | | (4,477 | ) | | | | |
Expiring 12/18/24 | | | MSI | | | | KRW | | | | 1,444,196 | | | | 1,086,495 | | | | 1,099,399 | | | | — | | | | | | | | (12,904 | ) | | | | |
Thai Baht, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 12/18/24 | | | JPM | | | | THB | | | | 35,735 | | | | 1,067,836 | | | | 1,116,371 | | | | — | | | | | | | | (48,535 | ) | | | | |
Expiring 12/18/24 | | | JPM | | | | THB | | | | 17,553 | | | | 523,571 | | | | 548,350 | | | | — | | | | | | | | (24,779 | ) | | | | |
Expiring 12/18/24 | | | JPM | | | | THB | | | | 9,042 | | | | 269,426 | | | | 282,483 | | | | — | | | | | | | | (13,057 | ) | | | | |
Turkish Lira, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 10/02/24 | | | HSBC | | | | TRY | | | | 7,785 | | | | 227,327 | | | | 227,189 | | | | 138 | | | | | | | | — | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | | | | | $ | 45,921,477 | | | $ | 46,911,345 | | | | 10,789 | | | | | | | | (1,000,657 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | $ | 239,669 | | | | | | | $ | (1,008,516 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Credit default swap agreements outstanding at September 30, 2024:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Reference Entity/ Obligation | | Termination
Date | | Fixed
Rate | | Notional
Amount
(000)#(3) | | | Implied
Credit
Spread at
September 30,
2024(4) | | Fair
Value | | | Upfront
Premiums
Paid
(Received) | | Unrealized
Appreciation
(Depreciation) | | Counterparty | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | |
OTC Credit Default Swap Agreement on asset-backed and/or mortgage-backed securities - Sell Protection(2)^: | | | | | | | | | | |
GS_24-PCA | | 08/02/27 | | 1.650%(M) | | | 850 | | | * | | $ | 1,944 | | | | | $ | — | | | | | | | $ | 1,944 | | | | | | GSI | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Reference Entity/ Obligation | | Termination
Date | | Fixed
Rate | | Notional
Amount
(000)#(3) | | | Fair
Value | | | Upfront
Premiums
Paid
(Received) | | Unrealized
Appreciation
(Depreciation) | | Counterparty |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | |
OTC Credit Default Swap Agreements on corporate and/or sovereign issues - Buy Protection(1): | | | | | | | | |
Republic of Italy | | 12/20/27 | | 1.000%(Q) | | EUR | 685 | | | $ | (21,849 | ) | | | | $ | (16,554 | ) | | | | | | $ | (5,295 | ) | | | | | | | BARC | | | |
U.S. Treasury Bond | | 06/20/25 | | 0.250%(Q) | | EUR | 715 | | | | (394 | ) | | | | | (278 | ) | | | | | | | (116 | ) | | | | | | | BARC | | | |
See Notes to Financial Statements.
PGIM Balanced Fund 71
Schedule of Investments (continued)
as of September 30, 2024
Credit default swap agreements outstanding at September 30, 2024 (continued):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Reference Entity/ Obligation | | Termination
Date | | Fixed
Rate | | Notional
Amount
(000)#(3) | | | Fair
Value | | | Upfront
Premiums
Paid
(Received) | | Unrealized
Appreciation
(Depreciation) | | Counterparty | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
OTC Credit Default Swap Agreements on corporate and/or sovereign issues - Buy Protection(1)(cont’d.): | | | | |
U.S. Treasury Bond | | 06/20/25 | | 0.250%(Q) | | | EUR | | | | 240 | | | | | | | $ | (132 | ) | | | | $ | (93 | ) | | | | | | $ | (39 | ) | | | | | BARC | |
United Mexican States | | 12/20/24 | | 1.000%(Q) | | | | | | | 400 | | | | | | | | (873 | ) | | | | | (209 | ) | | | | | | | (664 | ) | | | | | BARC | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | $ | (23,248 | ) | | | | $ | (17,134 | ) | | | | | | $ | (6,114 | ) | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Reference Entity/ Obligation | | Termination
Date | | | Fixed
Rate | | | Notional
Amount
(000)#(3) | | | Implied
Credit
Spread at
September 30,
2024(4) | | | Fair
Value | | | Upfront
Premiums
Paid
(Received) | | | Unrealized
Appreciation
(Depreciation) | | | Counterparty | |
| | |
OTC Credit Default Swap Agreements on corporate and/or sovereign issues - Sell Protection(2): | | | | | | | | | |
Bank of America Corp. | | | 12/20/25 | | | | 1.000%(Q) | | | | | | | | 470 | | | | | | | | 0.277 | % | | | | | | $ | 4,225 | | | | | | | | | | | $ | 4,121 | | | | | | | | | | | $ | 104 | | | | | | | | GSI | |
Citigroup, Inc. | | | 12/20/25 | | | | 1.000%(Q) | | | | | | | | 470 | | | | | | | | 0.245 | % | | | | | | | 4,402 | | | | | | | | | | | | 4,178 | | | | | | | | | | | | 224 | | | | | | | | GSI | |
Morgan Stanley | | | 12/20/25 | | | | 1.000%(Q) | | | | | | | | 470 | | | | | | | | 0.263 | % | | | | | | | 4,302 | | | | | | | | | | | | 4,121 | | | | | | | | | | | | 181 | | | | | | | | GSI | |
Petroleos Mexicanos | | | 12/20/24 | | | | 1.000%(Q) | | | | | | | | 400 | | | | | | | | 1.360 | % | | | | | | | (197 | ) | | | | | | | | | | | (915 | ) | | | | | | | | | | | 718 | | | | | | | | BARC | |
U.S. Treasury Bond | | | 12/20/24 | | | | 0.250%(Q) | | | | EUR | | | | 715 | | | | | | | | 0.147 | % | | | | | | | 243 | | | | | | | | | | | | 256 | | | | | | | | | | | | (13 | ) | | | | | | | BARC | |
U.S. Treasury Bond | | | 12/20/24 | | | | 0.250%(Q) | | | | EUR | | | | 250 | | | | | | | | 0.147 | % | | | | | | | 85 | | | | | | | | | | | | 119 | | | | | | | | | | | | (34 | ) | | | | | | | DB | |
U.S. Treasury Bond | | | 12/20/24 | | | | 0.250%(Q) | | | | EUR | | | | 240 | | | | | | | | 0.147 | % | | | | | | | 82 | | | | | | | | | | | | 86 | | | | | | | | | | | | (4 | ) | | | | | | | BARC | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 13,142 | | | | | | | | | | | $ | 11,966 | | | | | | | | | | | $ | 1,176 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Reference Entity/ Obligation | | Termination
Date | | | Fixed
Rate | | | Notional
Amount
(000)#(3) | | | Implied Credit
Spread at
September 30,
2024(4) | | | Value at
Trade Date | | | Value at
September 30,
2024 | | | Unrealized
Appreciation
(Depreciation) | |
| | | |
Centrally Cleared Credit Default Swap Agreements on credit indices - Sell Protection(2): | | | | | | | | | | | | | |
CDX.NA.HY.42.V1 | | | 06/20/29 | | | | 5.000 | %(Q) | | | 1,250 | | | | 3.057 | % | | | | | | $ | 77,937 | | | | | | | | | | | $ | 98,827 | | | | | | | | | | | $ | 20,890 | | | | | |
CDX.NA.HY.43.V1 | | | 12/20/29 | | | | 5.000 | %(Q) | | | 1,100 | | | | 3.303 | % | | | | | | | 79,954 | | | | | | | | | | | | 81,949 | | | | | | | | | | | | 1,995 | | | | | |
CDX.NA.IG.43.V1 | | | 12/20/29 | | | | 1.000 | %(Q) | | | 34,960 | | | | 0.528 | % | | | | | | | 792,783 | | | | | | | | | | | | 792,294 | | | | | | | | | | | | (489 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | $ | 950,674 | | | | | | | | | | | $ | 973,070 | | | | | | | | | | | $ | 22,396 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The Fund entered into credit default swaps (“CDS”) 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.
See Notes to Financial Statements.
72
| (1) | If the Fund is a buyer of protection, it pays the fixed rate. When a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and make delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. |
| (2) | If the Fund is a seller of protection, it receives the fixed rate. When a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. |
| (3) | Notional amount represents the maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. |
| (4) | Implied credit spreads, represented in absolute terms, utilized in determining the fair value of credit default swap agreements where the Fund is the seller of protection as of the reporting date serve as an indicator of the current status of the payment/ performance risk and represent the likelihood of risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include up-front payments required to be made to enter into the agreement. Wider credit spreads 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. |
| * | When an implied credit spread is not available, reference the fair value of credit default swap agreements on credit indices and asset-backed securities. Where the Fund is the seller of protection, it serves as an indicator of the current status of the payment/performance risk and represents the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the reporting date. Increasing fair value in absolute terms, when compared to the notional amount of the swap, represents 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. |
Interest rate swap agreements outstanding at September 30, 2024:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Notional
Amount
(000)# | | | Termination
Date | | | Fixed
Rate | | Floating Rate | | Value at Trade Date | | Value at September 30,
2024 | | Unrealized Appreciation (Depreciation) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Centrally Cleared Interest Rate Swap Agreements: | | | | | | | | | | | | | | | | | | | | | | |
| GBP | | | 928 | | | | 05/08/26 | | | 1.000%(A) | | 1 Day SONIA(1)(A)/4.950% | | | | $ | (34,697 | ) | | | | | | $ | 76,340 | | | | | | | $ | 111,037 | | | |
| GBP | | | 2,000 | | | | 05/08/27 | | | 1.050%(A) | | 1 Day SONIA(1)(A)/4.950% | | | | | 237,353 | | | | | | | | 222,722 | | | | | | | | (14,631 | ) | | |
| GBP | | | 190 | | | | 05/08/31 | | | 1.150%(A) | | 1 Day SONIA(1)(A)/4.950% | | | | | (8,272 | ) | | | | | | | 39,650 | | | | | | | | 47,922 | | | |
See Notes to Financial Statements.
PGIM Balanced Fund 73
Schedule of Investments (continued)
as of September 30, 2024
Interest rate swap agreements outstanding at September 30, 2024 (continued):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Notional
Amount
(000)# | | | Termination
Date | | | Fixed
Rate | | | Floating Rate | | Value at Trade Date | | Value at September 30,
2024 | | Unrealized Appreciation (Depreciation) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Centrally Cleared Interest Rate Swap Agreements (cont’d.): | | | | | | | | | | | | | | | | | | | | | | |
| | | 4,452 | | | | 03/08/25 | | | | 4.946%(A) | | | 1 Day SOFR(2)(A)/4.960% | | | | $ | — | | | | | | | $ | (2,624 | ) | | | | | | $ | (2,624 | ) | | |
| | | 5,724 | | | | 03/09/25 | | | | 5.110%(A) | | | 1 Day SOFR(2)(A)/4.960% | | | | | — | | | | | | | | 6,128 | | | | | | | | 6,128 | | | |
| | | 12,993 | | | | 03/10/25 | | | | 5.088%(A) | | | 1 Day SOFR(2)(A)/4.960% | | | | | — | | | | | | | | 11,190 | | | | | | | | 11,190 | | | |
| | | 27,355 | | | | 05/17/25 | | | | 5.113%(T) | | | 1 Day SOFR(2)(T)/4.960% | | | | | — | | | | | | | | 122,216 | | | | | | | | 122,216 | | | |
| | | 20,450 | | | | 08/19/25 | | | | 4.395%(T) | | | 1 Day SOFR(2)(T)/4.960% | | | | | 1,848 | | | | | | | | 55,508 | | | | | | | | 53,660 | | | |
| | | 11,110 | | | | 08/31/25 | | | | 4.805%(A) | | | 1 Day SOFR(1)(A)/4.960% | | | | | — | | | | | | | | (82,020 | ) | | | | | | | (82,020 | ) | | |
| | | 14,015 | | | | 05/17/26 | | | | 4.669%(A) | | | 1 Day SOFR(1)(A)/4.960% | | | | | — | | | | | | | | (206,806 | ) | | | | | | | (206,806 | ) | | |
| | | 2,590 | | | | 09/25/26 | | | | 4.699%(A) | | | 1 Day SOFR(1)(A)/4.960% | | | | | 479 | | | | | | | | (61,350 | ) | | | | | | | (61,829 | ) | | |
| | | 5,435 | | | | 05/13/27 | | | | 4.497%(A) | | | 1 Day SOFR(2)(A)/4.960% | | | | | 1,768 | | | | | | | | 134,316 | | | | | | | | 132,548 | | | |
| | | 3,385 | | | | 05/13/29 | | | | 4.253%(A) | | | 1 Day SOFR(1)(A)/4.960% | | | | | (3,599 | ) | | | | | | | (126,545 | ) | | | | | | | (122,946 | ) | | |
| | | 635 | | | | 05/11/54 | | | | 1.350%(A) | | | 1 Day SOFR(1)(A)/4.960% | | | | | 289,857 | | | | | | | | 244,314 | | | | | | | | (45,543 | ) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | $ | 484,737 | | | | | | | $ | 433,039 | | | | | | | $ | (51,698 | ) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | The Fund pays the fixed rate and receives the floating rate. |
| (2) | The Fund pays the floating rate and receives the fixed rate. |
Total return swap agreements outstanding at September 30, 2024:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Reference Entity | | Financing Rate | | Counterparty | | Termination Date | | Long
(Short)
Notional
Amount
(000)#(1) | | | Fair
Value | | | Upfront
Premiums
Paid
(Received) | | Unrealized
Appreciation (Depreciation)(2) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
OTC Total Return Swap Agreements: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Return Benchmark Bond Index(T) | | 1 Day USOIS -40bps(T)/4.430% | | GSI | | 03/20/25 | | | (6,799) | | | $ | 98,412 | | | | | $ | — | | | | | | | $ | 98,412 | | | |
U.S. Treasury Bond(T) | | 1 Day USOIS +20bps(T)/5.030% | | JPM | | 01/07/25 | | | 5,225 | | | | 417,950 | | | | | | — | | | | | | | | 417,950 | | | |
U.S. Treasury Bond(T) | | 1 Day USOIS +21bps(T)/5.040% | | BOA | | 01/07/25 | | | 9,105 | | | | 670,914 | | | | | | — | | | | | | | | 670,914 | | | |
See Notes to Financial Statements.
74
Total return swap agreements outstanding at September 30, 2024 (continued):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Reference Entity | | Financing Rate | | Counterparty | | Termination Date | | Long
(Short)
Notional
Amount
(000)#(1) | | | Fair
Value | | | Upfront
Premiums
Paid
(Received) | | Unrealized
Appreciation
(Depreciation)(2) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
OTC Total Return Swap Agreements (cont’d.): | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. Treasury Bond(T) | | 1 Day USOIS +23bps(T)/5.060% | | GSI | | 02/03/25 | | | 5,970 | | | $ | 97,669 | | | | | $ | — | | | | | | | $ | 97,669 | | | |
U.S. Treasury Bond(T) | | 1 Day USOIS +23bps(T)/5.060% | | JPM | | 02/04/25 | | | 4,325 | | | | (54,009 | ) | | | | | — | | | | | | | | (54,009 | ) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | $ | 1,230,936 | | | | | $ | — | | | | | | | $ | 1,230,936 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | On a long total return swap, the Fund receives payments for any positive return on the reference entity (makes payments for any negative return) and pays the financing rate. On a short total return swap, the Fund makes payments for any positive return on the reference entity (receives payments for any negative return) and receives the financing rate. |
| (2) | Upfront/recurring fees or commissions, as applicable, are included in the net unrealized appreciation (depreciation). |
Balances Reported in the Statement of Assets and Liabilities for OTC Swap Agreements:
| | | | | | | | |
| | | Premiums Paid | | Premiums Received | | Unrealized Appreciation | | Unrealized Depreciation |
| | | | |
OTC Swap Agreements | | $12,881 | | $(18,049) | | $1,288,116 | | $(60,174) |
Summary of Collateral for Centrally Cleared/Exchange-traded Derivatives:
Cash and securities segregated as collateral, including pending settlement for closed positions, to cover requirements for centrally cleared/exchange-traded derivatives are listed by broker as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
Broker | | Cash and/or Foreign Currency | | | Securities Market Value | |
| | | | | | |
CGM | | | | | | $ | — | | | | | | | | | | | $ | 2,592,785 | | | | | |
GS | | | | | | | — | | | | | | | | | | | | 49,506 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total | | | | | | $ | — | | | | | | | | | | | $ | 2,642,291 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
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.
See Notes to Financial Statements.
PGIM Balanced Fund 75
Schedule of Investments (continued)
as of September 30, 2024
The following is a summary of the inputs used as of September 30, 2024 in valuing such portfolio securities:
| | | | | | | | | | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | |
| | | | | |
Investments in Securities | | | | | | | | | | | | | | | | | | | | |
Assets | | | | | | | | | | | | | | | | | | | | |
Long-Term Investments | | | | | | | | | | | | | | | | | | | | |
Affiliated Exchange-Traded Fund | | $ | 1,057,645 | | | $ | — | | | | | | | $ | — | | | | | |
Common Stocks | | | 514,004,902 | | | | 105,933,697 | | | | | | | | 29,013 | | | | | |
Preferred Stocks | | | 1,973,072 | | | | 287,639 | | | | | | | | 13,234 | | | | | |
Unaffiliated Exchange-Traded Funds | | | 584,055 | | | | — | | | | | | | | — | | | | | |
Asset-Backed Securities | | | | | | | | | | | | | | | | | | | | |
Automobiles | | | — | | | | 6,282,225 | | | | | | | | — | | | | | |
Collateralized Loan Obligations | | | — | | | | 34,498,907 | | | | | | | | — | | | | | |
Consumer Loans | | | — | | | | 2,922,807 | | | | | | | | — | | | | | |
Equipment | | | — | | | | 93,404 | | | | | | | | — | | | | | |
Home Equity Loans | | | — | | | | 1,529,351 | | | | | | | | — | | | | | |
Other | | | — | | | | 1,274,276 | | | | | | | | — | | | | | |
Student Loans | | | — | | | | 622,655 | | | | | | | | — | | | | | |
Commercial Mortgage-Backed Securities | | | — | | | | 58,547,648 | | | | | | | | — | | | | | |
Corporate Bonds | | | — | | | | 157,479,617 | | | | | | | | 3,903 | | | | | |
Floating Rate and Other Loans | | | — | | | | 444,009 | | | | | | | | 30,040 | | | | | |
Municipal Bonds | | | — | | | | 2,422,855 | | | | | | | | — | | | | | |
Residential Mortgage-Backed Securities | | | — | | | | 9,288,812 | | | | | | | | — | | | | | |
Sovereign Bonds | | | — | | | | 7,070,329 | | | | | | | | — | | | | | |
U.S. Government Agency Obligations | | | — | | | | 68,352,026 | | | | | | | | — | | | | | |
U.S. Treasury Obligations | | | — | | | | 41,714,355 | | | | | | | | — | | | | | |
Short-Term Investments | | | | | | | | | | | | | | | | | | | | |
Affiliated Mutual Funds | | | 13,162,605 | | | | — | | | | | | | | — | | | | | |
U.S. Treasury Obligation | | | — | | | | 49,506 | | | | | | | | — | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total | | $ | 530,782,279 | | | $ | 498,814,118 | | | | | | | $ | 76,190 | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Liabilities | | | | | | | | | | | | | | | | | | | | |
Option Written | | $ | — | | | $ | (2,309 | ) | | | | | | $ | — | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Other Financial Instruments* | | | | | | | | | | | | | | | | | | | | |
Assets | | | | | | | | | | | | | | | | | | | | |
Unfunded Corporate Bond Commitment | | $ | — | | | $ | — | | | | | | | $ | — | | | | | |
Futures Contracts | | | 131,474 | | | | — | | | | | | | | — | | | | | |
OTC Forward Foreign Currency Exchange Contracts | | | — | | | | 239,669 | | | | | | | | — | | | | | |
Centrally Cleared Credit Default Swap Agreements | | | — | | | | 22,885 | | | | | | | | — | | | | | |
OTC Credit Default Swap Agreements | | | — | | | | 13,339 | | | | | | | | 1,944 | | | | | |
Centrally Cleared Interest Rate Swap Agreements | | | — | | | | 484,701 | | | | | | | | — | | | | | |
OTC Total Return Swap Agreements | | | — | | | | 1,284,945 | | | | | | | | — | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total | | $ | 131,474 | | | $ | 2,045,539 | | | | | | | $ | 1,944 | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Liabilities | | | | | | | | | | | | | | | | | | | | |
Futures Contracts | | $ | (147,706 | ) | | $ | — | | | | | | | $ | — | | | | | |
OTC Forward Foreign Currency Exchange Contracts | | | — | | | | (1,008,516 | ) | | | | | | | — | | | | | |
Centrally Cleared Credit Default Swap Agreement | | | — | | | | (489 | ) | | | | | | | — | | | | | |
See Notes to Financial Statements.
76
| | | | | | | | | | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | |
| | | | | |
Other Financial Instruments* (continued) | | | | | | | | | | | | | | | | | | | | |
Liabilities (continued) | | | | | | | | | | | | | | | | | | | | |
OTC Credit Default Swap Agreements | | $ | — | | | $ | (23,445 | ) | | | | | | $ | — | | | | | |
Centrally Cleared Interest Rate Swap Agreements | | | — | | | | (536,399 | ) | | | | | | | — | | | | | |
OTC Total Return Swap Agreement | | | — | | | | (54,009 | ) | | | | | | | — | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total | | $ | (147,706) | | | $ | (1,622,858) | | | | | | | $ | — | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| * | Other financial instruments are derivative instruments, with the exception of unfunded corporate bond commitments, and are not reflected in the Schedule of Investments. Futures, forwards, centrally cleared swap contracts and unfunded corporate bond commitments are recorded at net unrealized appreciation (depreciation) and OTC swap contracts are recorded at fair value. |
Industry Classification:
The industry classification of investments and other assets in excess of liabilities shown as a percentage of net assets as of September 30, 2024 were as follows:
| | | | |
Banks | | | 6.9 | % |
U.S. Government Agency Obligations | | | 6.6 | |
Semiconductors & Semiconductor Equipment | | | 6.0 | |
Commercial Mortgage-Backed Securities | | | 5.7 | |
Software | | | 4.8 | |
U.S. Treasury Obligations | | | 4.0 | |
Technology Hardware, Storage & Peripherals | | | 4.0 | |
Pharmaceuticals | | | 3.6 | |
Collateralized Loan Obligations | | | 3.3 | |
Interactive Media & Services | | | 3.2 | |
Oil, Gas & Consumable Fuels | | | 2.4 | |
Financial Services | | | 2.3 | |
Insurance | | | 2.1 | |
Aerospace & Defense | | | 2.0 | |
Broadline Retail | | | 1.9 | |
Automobiles | | | 1.9 | |
Capital Markets | | | 1.7 | |
Affiliated Mutual Funds (0.3% represents investments purchased with collateral from securities on loan) | | | 1.3 | |
Biotechnology | | | 1.2 | |
Electric | | | 1.2 | |
Health Care Equipment & Supplies | | | 1.2 | |
Specialty Retail | | | 1.1 | |
Beverages | | | 1.0 | |
Telecommunications | | | 1.0 | |
Consumer Staples Distribution & Retail | | | 1.0 | |
Health Care Providers & Services | | | 0.9 | |
Diversified Telecommunication Services | | | 0.9 | |
| | | | |
Life Sciences Tools & Services | | | 0.9 | % |
Residential Mortgage-Backed Securities | | | 0.9 | |
Pipelines | | | 0.9 | |
Oil & Gas | | | 0.9 | |
Hotels, Restaurants & Leisure | | | 0.9 | |
Chemicals | | | 0.8 | |
Entertainment | | | 0.8 | |
Ground Transportation | | | 0.8 | |
Real Estate Investment Trusts (REITs) | | | 0.8 | |
Machinery | | | 0.8 | |
Communications Equipment | | | 0.7 | |
Household Products | | | 0.7 | |
Sovereign Bonds | | | 0.7 | |
Electric Utilities | | | 0.7 | |
Electrical Equipment | | | 0.6 | |
Metals & Mining | | | 0.6 | |
Healthcare-Services | | | 0.6 | |
Media | | | 0.6 | |
Electronic Equipment, Instruments & Components | | | 0.5 | |
IT Services | | | 0.5 | |
Industrial Conglomerates | | | 0.5 | |
Multi-Utilities | | | 0.4 | |
Industrial REITs | | | 0.4 | |
Real Estate Management & Development | | | 0.4 | |
Agriculture | | | 0.4 | |
Building Products | | | 0.4 | |
Air Freight & Logistics | | | 0.4 | |
Construction Materials | | | 0.4 | |
Food Products | | | 0.4 | |
See Notes to Financial Statements.
PGIM Balanced Fund 77
Schedule of Investments (continued)
as of September 30, 2024
Industry Classification (continued):
| | | | |
Auto Manufacturers | | | 0.3 | % |
Commercial Services & Supplies | | | 0.3 | |
Residential REITs | | | 0.3 | |
Textiles, Apparel & Luxury Goods | | | 0.3 | |
Consumer Loans | | | 0.3 | |
Independent Power & Renewable Electricity Producers | | | 0.3 | |
Foods | | | 0.3 | |
Tobacco | | | 0.3 | |
Municipal Bonds | | | 0.2 | |
Specialized REITs | | | 0.2 | |
Retail | | | 0.2 | |
Trading Companies & Distributors | | | 0.2 | |
Construction & Engineering | | | 0.2 | |
Home Builders | | | 0.2 | |
Commercial Services | | | 0.2 | |
Professional Services | | | 0.2 | |
Lodging | | | 0.2 | |
Household Durables | | | 0.2 | |
Passenger Airlines | | | 0.2 | |
Diversified Financial Services | | | 0.2 | |
Auto Parts & Equipment | | | 0.2 | |
Engineering & Construction | | | 0.2 | |
Gas | | | 0.2 | |
Semiconductors | | | 0.2 | |
Home Equity Loans | | | 0.2 | |
Packaging & Containers | | | 0.1 | |
Transportation | | | 0.1 | |
Health Care REITs | | | 0.1 | |
Automobile Components | | | 0.1 | |
Wireless Telecommunication Services | | | 0.1 | |
Miscellaneous Manufacturing | | | 0.1 | |
Other | | | 0.1 | |
Mining | | | 0.1 | |
Retail REITs | | | 0.1 | |
Electronics | | | 0.1 | |
Affiliated Exchange-Traded Fund | | | 0.1 | |
Marine Transportation | | | 0.1 | |
Leisure Time | | | 0.1 | |
| | | | |
Airlines | | | 0.1 | % |
Building Materials | | | 0.1 | |
Leisure Products | | | 0.1 | |
Trucking & Leasing | | | 0.1 | |
Machinery-Diversified | | | 0.1 | |
Transportation Infrastructure | | | 0.1 | |
Energy Equipment & Services | | | 0.1 | |
Consumer Finance | | | 0.1 | |
Student Loans | | | 0.1 | |
Real Estate | | | 0.1 | |
Unaffiliated Exchange-Traded Funds | | | 0.1 | |
Diversified Consumer Services | | | 0.1 | |
Paper & Forest Products | | | 0.0 | * |
Healthcare-Products | | | 0.0 | * |
Distribution/Wholesale | | | 0.0 | * |
Computers | | | 0.0 | * |
Oil & Gas Services | | | 0.0 | * |
Office REITs | | | 0.0 | * |
Water Utilities | | | 0.0 | * |
Gas Utilities | | | 0.0 | * |
Containers & Packaging | | | 0.0 | * |
Housewares | | | 0.0 | * |
Diversified REITs | | | 0.0 | * |
Personal Care Products | | | 0.0 | * |
Health Care Technology | | | 0.0 | * |
Mortgage Real Estate Investment Trusts (REITs) | | | 0.0 | * |
Equipment | | | 0.0 | * |
Environmental Control | | | 0.0 | * |
Multi-National | | | 0.0 | * |
Hotel & Resort REITs | | | 0.0 | * |
| | | | |
| |
| | | 99.9 | |
Option Written | | | (0.0 | )* |
Other assets in excess of liabilities | | | 0.1 | |
| | | | |
| |
| | | 100.0 | % |
| | | | |
| |
* Less than 0.05% | | | | |
Effects of Derivative Instruments on the Financial Statements and Primary Underlying Risk Exposure:
The Fund invested in derivative instruments during the reporting period. The primary types of risk associated with these derivative instruments are credit risk, equity risk, foreign exchange risk, and interest rate risk. See the Notes to Financial Statements for additional detail regarding these derivative instruments and their risks. The effect of such derivative instruments on the Fund’s financial position and financial performance as reflected in the Statement of Assets and
See Notes to Financial Statements.
78
Liabilities and Statement of Operations is presented in the summary below.
Fair values of derivative instruments as of September 30, 2024 as presented in the Statement of Assets and Liabilities:
| | | | | | | | | | | | | | | | |
| | | Asset Derivatives | | | | | | Liability Derivatives | |
| | | | | | | | | | |
| | | | | |
Derivatives not accounted for as hedging instruments, carried at fair value | | Statement of Assets and Liabilities Location | | Fair
Value | | | | | | Statement of Assets and Liabilities Location | | Fair
Value | |
| | | | | |
Credit contracts | | Due from/to broker-variation margin swaps | | $ | 22,885* | | | | | | | Due from/to broker-variation margin swaps | | $ | 489* | |
| | | | | |
Credit contracts | | Premiums paid for OTC swap agreements | | | 12,881 | | | | | | | Premiums received for OTC swap agreements | | | 18,049 | |
Credit contracts | | — | | | — | | | | | | | Options written outstanding, at value | | | 2,309 | |
Credit contracts | | Unrealized appreciation on OTC swap agreements | | | 3,171 | | | | | | | Unrealized depreciation on OTC swap agreements | | | 6,165 | |
| | | | | |
Equity contracts | | Due from/to broker-variation margin futures | | | 37,997 | * | | | | | | — | | | — | |
Foreign exchange contracts | | Unrealized appreciation on OTC forward foreign currency exchange contracts | | | 239,669 | | | | | | | Unrealized depreciation on OTC forward foreign currency exchange contracts | | | 1,008,516 | |
Interest rate contracts | | Due from/to broker-variation margin futures | | | 93,477 | * | | | | | | Due from/to broker-variation margin futures | | | 147,706 | * |
Interest rate contracts | | Due from/to broker-variation margin swaps | | | 484,701 | * | | | | | | Due from/to broker-variation margin swaps | | | 536,399 | * |
Interest rate contracts | | Unrealized appreciation on OTC swap agreements | | | 1,284,945 | | | | | | | Unrealized depreciation on OTC swap agreements | | | 54,009 | |
| | | | | | | | | | | | | | | | |
| | | | | |
| | | | $ | 2,179,726 | | | | | | | | | $ | 1,773,642 | |
| | | | | | | | | | | | | | | | |
| * | 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.
PGIM Balanced Fund 79
Schedule of Investments (continued)
as of September 30, 2024
The effects of derivative instruments on the Statement of Operations for the year ended September 30, 2024 are as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
| Amount of Realized Gain (Loss) on Derivatives Recognized in Income | |
| |
| | | | |
Derivatives not accounted for as hedging instruments, carried at fair value | | Options Written | | Futures | | | Forward & Cross
Currency
Exchange
Contracts | | Swaps | |
| | | | | | | | |
Credit contracts | | | | $ | 549 | | | | | $ | — | | | | | $ | — | | | | | $ | 1,105,195 | |
Equity contracts | | | | | — | | | | | | 492,400 | | | | | | — | | | | | | — | |
Foreign exchange contracts | | | | | — | | | | | | — | | | | | | 420,251 | | | | | | — | |
Interest rate contracts | | | | | — | | | | | | 573,702 | | | | | | — | | | | | | (1,850,368 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | $ | 549 | | | | | $ | 1,066,102 | | | | | $ | 420,251 | | | | | $ | (745,173 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income | |
| |
| | | | |
Derivatives not accounted for as hedging instruments, carried at fair value | | Options Written | | Futures | | | Forward & Cross
Currency
Exchange
Contracts | | Swaps | |
| | | | | | | | |
Credit contracts | | | | $ | 4,896 | | | | | $ | — | | | | | $ | — | | | | | $ | (7,310 | ) |
Equity contracts | | | | | — | | | | | | 160,420 | | | | | | — | | | | | | — | |
Foreign exchange contracts | | | | | — | | | | | | — | | | | | | (1,867,118 | ) | | | | | — | |
Interest rate contracts | | | | | — | | | | | | 1,106,847 | | | | | | — | | | | | | 1,671,521 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | $ | 4,896 | | | | | $ | 1,267,267 | | | | | $ | (1,867,118 | ) | | | | $ | 1,664,211 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
For the year ended September 30, 2024, the Fund’s average volume of derivative activities is as follows:
| | | | | |
| Derivative Contract Type | | Average Volume of Derivative Activities* |
| |
Options Written (1) | | | $ | 4,554,000 | |
| |
Futures Contracts - Long Positions (1) | | | | 89,793,985 | |
| |
Futures Contracts - Short Positions (1) | | | | 14,501,872 | |
| |
Forward Foreign Currency Exchange Contracts - Purchased (2) | | | | 16,596,761 | |
| |
Forward Foreign Currency Exchange Contracts - Sold (2) | | | | 42,103,740 | |
| |
Cross Currency Exchange Contracts (3) | | | | 378,998 | |
| |
Interest Rate Swap Agreements (1) | | | | 90,930,058 | |
| |
Credit Default Swap Agreements - Buy Protection (1) | | | | 1,355,720 | |
| |
Credit Default Swap Agreements - Sell Protection (1) | | | | 16,771,355 | |
| |
Total Return Swap Agreements (1) | | | | 27,501,396 | |
| * | Average volume is based on average quarter end balances for the year ended September 30, 2024. |
| (1) | Notional Amount in USD. |
| (2) | Value at Settlement Date. |
See Notes to Financial Statements.
80
Financial Instruments/Transactions—Summary of Offsetting and Netting Arrangements:
The Fund invested in OTC derivatives and entered into financial instruments/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 OTC derivatives and financial instruments/transactions where the legal right to set-off exists is presented in the summary below.
Offsetting of financial instrument/transaction assets and liabilities:
| | | | | | |
| Description | | Gross Market Value of Recognized Assets/(Liabilities) | | Collateral Pledged/(Received)(2) | | Net Amount |
| | | |
Securities on Loan | | $3,124,445 | | $(3,124,445) | | $— |
Offsetting of OTC derivative assets and liabilities:
| | | | | | | | | | | | | | | | | | | | | | | | | |
Counterparty | | Gross Amounts of Recognized Assets(1) | | Gross Amounts of Recognized Liabilities(1) | | Net Amounts of Recognized Assets/(Liabilities) | | Collateral Pledged/(Received)(2) | | Net Amount |
| | | | | |
BARC | | | $ | 29,082 | | | | $ | (34,248 | ) | | | $ | (5,166 | ) | | | $ | — | | | | $ | (5,166 | ) |
BNP | | | | — | | | | | (2,309 | ) | | | | (2,309 | ) | | | | — | | | | | (2,309 | ) |
BOA | | | | 675,690 | | | | | (22,790 | ) | | | | 652,900 | | | | | (652,900 | ) | | | | — | |
CITI | | | | 21,945 | | | | | (32,222 | ) | | | | (10,277 | ) | | | | — | | | | | (10,277 | ) |
DB | | | | 10,583 | | | | | (3,342 | ) | | | | 7,241 | | | | | — | | | | | 7,241 | |
GSI | | | | 269,049 | | | | | (109,259 | ) | | | | 159,790 | | | | | — | | | | | 159,790 | |
HSBC | | | | 32,918 | | | | | (97,859 | ) | | | | (64,941 | ) | | | | — | | | | | (64,941 | ) |
JPM | | | | 435,844 | | | | | (148,408 | ) | | | | 287,436 | | | | | (287,436 | ) | | | | — | |
MSI | | | | 25,662 | | | | | (139,008 | ) | | | | (113,346 | ) | | | | — | | | | | (113,346 | ) |
SCB | | | | 10,248 | | | | | (13,378 | ) | | | | (3,130 | ) | | | | — | | | | | (3,130 | ) |
SSB | | | | 24,686 | | | | | (366,914 | ) | | | | (342,228 | ) | | | | 285,346 | | | | | (56,882 | ) |
TD | | | | 4,959 | | | | | (113,421 | ) | | | | (108,462 | ) | | | | — | | | | | (108,462 | ) |
UAG | | | | — | | | | | (5,890 | ) | | | | (5,890 | ) | | | | — | | | | | (5,890 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | $ | 1,540,666 | | | | $ | (1,089,048 | ) | | | $ | 451,618 | | | | $ | (654,990 | ) | | | $ | (203,372 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Includes unrealized appreciation/(depreciation) on swaps and forwards, premiums paid/(received) on swap agreements and market value of purchased and written options, as represented on the Statement of Assets and Liabilities. |
| (2) | Collateral amount disclosed by the Fund is limited to the market value of financial instruments/transactions and the Fund’s OTC derivative exposure by counterparty. |
See Notes to Financial Statements.
PGIM Balanced Fund 81
Statement of Assets and Liabilities
as of September 30, 2024
| | | | |
| |
Assets | | | | |
| |
Investments at value, including securities on loan of $3,124,445: | | | | |
Unaffiliated investments (cost $814,934,034) | | $ | 1,015,452,337 | |
Affiliated investments (cost $14,216,251) | | | 14,220,250 | |
Cash | | | 328 | |
Foreign currency, at value (cost $1,005,297) | | | 1,007,279 | |
Receivable for investments sold | | | 11,100,639 | |
Dividends and interest receivable | | | 3,787,046 | |
Unrealized appreciation on OTC swap agreements | | | 1,288,116 | |
Receivable for Fund shares sold | | | 751,936 | |
Tax reclaim receivable | | | 488,697 | |
Unrealized appreciation on OTC forward foreign currency exchange contracts | | | 239,669 | |
Premiums paid for OTC swap agreements | | | 12,881 | |
Prepaid expenses | | | 9,870 | |
| | | | |
| |
Total Assets | | | 1,048,359,048 | |
| | | | |
| |
Liabilities | | | | |
| |
Payable for investments purchased | | | 11,194,418 | |
Payable to broker for collateral for securities on loan | | | 3,191,264 | |
Unrealized depreciation on OTC forward foreign currency exchange contracts | | | 1,008,516 | |
Payable for Fund shares purchased | | | 787,355 | |
Management fee payable | | | 438,649 | |
Foreign capital gains tax liability accrued | | | 366,655 | |
Accrued expenses and other liabilities | | | 361,531 | |
Distribution fee payable | | | 223,791 | |
Due to broker—variation margin futures | | | 194,509 | |
Affiliated transfer agent fee payable | | | 60,799 | |
Unrealized depreciation on OTC swap agreements | | | 60,174 | |
Premiums received for OTC swap agreements | | | 18,049 | |
Options written outstanding, at value (premiums received $7,184) | | | 2,309 | |
Due to broker—variation margin swaps | | | 268 | |
Directors’ fees payable | | | 239 | |
| | | | |
| |
Total Liabilities | | | 17,908,526 | |
| | | | |
| |
Net Assets | | $ | 1,030,450,522 | |
| | | | |
| |
| | | | | |
| |
Net assets were comprised of: | | | | |
Common stock, at par | | $ | 55,245 | |
Paid-in capital in excess of par | | | 783,438,370 | |
Total distributable earnings (loss) | | | 246,956,907 | |
| | | | |
| |
Net assets, September 30, 2024 | | $ | 1,030,450,522 | |
| | | | |
See Notes to Financial Statements.
82
| | | | | | | | |
Class A | | | | | | | | |
| | |
Net asset value and redemption price per share,
($742,274,597 ÷ 39,900,936 shares of common stock issued and outstanding) | | $ | 18.60 | | | | | |
Maximum sales charge (3.25% of offering price) | | | 0.62 | | | | | |
| | | | | | | | |
Maximum offering price to public | | $ | 19.22 | | | | | |
| | | | | | | | |
| | |
Class C | | | | | | | | |
| | |
Net asset value, offering price and redemption price per share,
($53,051,559 ÷ 2,830,769 shares of common stock issued and outstanding) | | $ | 18.74 | | | | | |
| | | | | | | | |
| | |
Class R | | | | | | | | |
| | |
Net asset value, offering price and redemption price per share,
($31,497 ÷ 1,692 shares of common stock issued and outstanding) | | $ | 18.61 | | | | | |
| | | | | | | | |
| | |
Class Z | | | | | | | | |
| | |
Net asset value, offering price and redemption price per share,
($116,245,447 ÷ 6,187,843 shares of common stock issued and outstanding) | | $ | 18.79 | | | | | |
| | | | | | | | |
| | |
Class R6 | | | | | | | | |
| | |
Net asset value, offering price and redemption price per share,
($118,847,422 ÷ 6,323,439 shares of common stock issued and outstanding) | | $ | 18.79 | | | | | |
| | | | | | | | |
See Notes to Financial Statements.
PGIM Balanced Fund 83
Statement of Operations
Year Ended September 30, 2024
| | | | |
Net Investment Income (Loss) | | | | |
| |
Income | | | | |
Interest income | | $ | 18,113,363 | |
Unaffiliated dividend income (net of $516,952 foreign withholding tax) | | | 10,685,051 | |
Affiliated dividend income | | | 890,938 | |
Income from securities lending, net (including affiliated income of $8,410) | | | 9,984 | |
| | | | |
| |
Total income | | | 29,699,336 | |
| | | | |
| |
Expenses | | | | |
Management fee | | | 6,325,122 | |
Distribution fee(a) | | | 2,638,041 | |
Transfer agent’s fees and expenses (including affiliated expense of $371,516)(a) | | | 976,088 | |
Custodian and accounting fees | | | 269,287 | |
Shareholders’ reports | | | 90,092 | |
Registration fees(a) | | | 88,825 | |
Professional fees | | | 72,288 | |
Audit fee | | | 53,424 | |
Directors’ fees | | | 23,249 | |
Miscellaneous | | | 71,636 | |
| | | | |
| |
Total expenses | | | 10,608,052 | |
Less: Fee waiver and/or expense reimbursement(a) | | | (1,046,555 | ) |
Distribution fee waiver(a) | | | (70 | ) |
| | | | |
| |
Net expenses | | | 9,561,427 | |
| | | | |
| |
Net investment income (loss) | | | 20,137,909 | |
| | | | |
| |
Realized And Unrealized Gain (Loss) On Investment And Foreign Currency Transactions | | | | |
| |
Net realized gain (loss) on: | | | | |
Investment transactions (including affiliated of $1,527) (net of foreign capital gains taxes $(126,669)) | | | 55,761,898 | |
Futures transactions | | | 1,066,102 | |
Forward and cross currency contract transactions | | | 420,251 | |
Options written transactions | | | 549 | |
Swap agreement transactions | | | (745,173 | ) |
Foreign currency transactions | | | (461,277 | ) |
| | | | |
| |
| | | 56,042,350 | |
| | | | |
Net change in unrealized appreciation (depreciation) on: | | | | |
Investments (including affiliated of $3,886) (net of change in foreign capital gains taxes $(291,416)) | | | 141,338,057 | |
Futures | | | 1,267,267 | |
Forward and cross currency contracts | | | (1,867,118 | ) |
Options written | | | 4,896 | |
Swap agreements | | | 1,664,211 | |
Foreign currencies | | | 13,241 | |
| | | | |
| |
| | | 142,420,554 | |
| | | | |
| |
Net gain (loss) on investment and foreign currency transactions | | | 198,462,904 | |
| | | | |
| |
Net Increase (Decrease) In Net Assets Resulting From Operations | | $ | 218,600,813 | |
| | | | |
See Notes to Financial Statements.
84
| (a) | Class specific expenses and waivers were as follows: |
| | | | | | | | | | | | | | | | | | | | |
| | | Class A | | | Class C | | | Class R | | | Class Z | | | Class R6 | |
Distribution fee | | | 2,086,990 | | | | 550,842 | | | | 209 | | | | — | | | | — | |
Transfer agent’s fees and expenses | | | 756,084 | | | | 70,641 | | | | 568 | | | | 147,033 | | | | 1,762 | |
Registration fees | | | 27,770 | | | | 17,530 | | | | 6,813 | | | | 15,400 | | | | 21,312 | |
Fee waiver and/or expense reimbursement | | | (849,488) | | | | (33,098) | | | | (7,306) | | | | (76,383) | | | | (80,280) | |
Distribution fee waiver | | | — | | | | — | | | | (70) | | | | — | | | | — | |
See Notes to Financial Statements.
PGIM Balanced Fund 85
Statements of Changes in Net Assets
| | | | | | | | | | | | | | | | |
| | |
| | | | | | Year Ended | |
| | |
| | | | | | September 30, | |
| | | | |
| | | | | | 2024 | | | | | | 2023 | |
| | | | |
Increase (Decrease) in Net Assets | | | | | | | | | | | | | | | | |
| | | | |
Operations | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | | | | $ | 20,137,909 | | | | | | | $ | 19,527,984 | |
Net realized gain (loss) on investment and foreign currency transactions | | | | | | | 56,042,350 | | | | | | | | 5,734,289 | |
Net change in unrealized appreciation (depreciation) on investments and foreign currencies | | | | | | | 142,420,554 | | | | | | | | 84,707,147 | |
| | | | | | | | | | | | | | | | |
| | | | |
Net increase (decrease) in net assets resulting from operations | | | | | | | 218,600,813 | | | | | | | | 109,969,420 | |
| | | | | | | | | | | | | | | | |
| | | | |
Dividends and Distributions | | | | | | | | | | | | | | | | |
Distributions from distributable earnings | | | | | | | | | | | | | | | | |
Class A | | | | | | | (15,816,715 | ) | | | | | | | (14,280,270 | ) |
Class C | | | | | | | (811,543 | ) | | | | | | | (846,320 | ) |
Class R | | | | | | | (512 | ) | | | | | | | (1,742 | ) |
Class Z | | | | | | | (3,150,242 | ) | | | | | | | (2,729,302 | ) |
Class R6 | | | | | | | (2,423,192 | ) | | | | | | | (2,158,971 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | (22,202,204 | ) | | | | | | | (20,016,605 | ) |
| | | | | | | | | | | | | | | | |
Fund share transactions (Net of share conversions) | | | | | | | | | | | | | | | | |
Net proceeds from shares sold | | | | | | | 119,645,937 | | | | | | | | 81,337,380 | |
Net asset value of shares issued in reinvestment of dividends and distributions | | | | | | | 21,753,026 | | | | | | | | 19,628,243 | |
Cost of shares purchased | | | | | | | (203,484,982 | ) | | | | | | | (167,597,777 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Net increase (decrease) in net assets from Fund share transactions | | | | | | | (62,086,019 | ) | | | | | | | (66,632,154 | ) |
| | | | | | | | | | | | | | | | |
Total increase (decrease) | | | | | | | 134,312,590 | | | | | | | | 23,320,661 | |
| | | | |
Net Assets: | | | | | | | | | | | | | | | | |
Beginning of year | | | | | | | 896,137,932 | | | | | | | | 872,817,271 | |
| | | | | | | | | | | | | | | | |
| | | | |
End of year | | | | | | $ | 1,030,450,522 | | | | | | | $ | 896,137,932 | |
| | | | | | | | | | | | | | | | |
See Notes to Financial Statements.
86
Financial Highlights
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | |
| | |
| | | Year Ended September 30, | |
| | | | | | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | | | |
Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning of Year | | | $15.18 | | | | $13.75 | | | | $18.70 | | | | $15.96 | | | | $15.61 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 0.35 | | | | 0.32 | | | | 0.24 | | | | 0.23 | | | | 0.24 | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | 3.46 | | | | 1.44 | | | | (3.02 | ) | | | 2.75 | | | | 0.63 | |
Total from investment operations | | | 3.81 | | | | 1.76 | | | | (2.78 | ) | | | 2.98 | | | | 0.87 | |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (0.39 | ) | | | (0.33 | ) | | | (0.29 | ) | | | (0.20 | ) | | | (0.24 | ) |
Distributions from net realized gains | | | - | | | | - | | | | (1.88 | ) | | | (0.04 | ) | | | (0.28 | ) |
Total dividends and distributions | | | (0.39 | ) | | | (0.33 | ) | | | (2.17 | ) | | | (0.24 | ) | | | (0.52 | ) |
Net asset value, end of year | | | $18.60 | | | | $15.18 | | | | $13.75 | | | | $18.70 | | | | $15.96 | |
Total Return(b): | | | 25.36 | % | | | 12.83 | % | | | (16.95 | )% | | | 18.76 | % | | | 5.64 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year (000) | | | $742,275 | | | | $639,625 | | | | $615,650 | | | | $760,976 | | | | $616,646 | |
Average net assets (000) | | | $695,663 | | | | $652,990 | | | | $732,873 | | | | $710,895 | | | | $593,393 | |
Ratios to average net assets(c): | | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | 1.00 | % | | | 1.00 | % | | | 1.00 | % | | | 1.00 | % | | | 1.00 | % |
Expenses before waivers and/or expense reimbursement | | | 1.12 | % | | | 1.15 | % | | | 1.12 | % | | | 1.11 | % | | | 1.16 | % |
Net investment income (loss) | | | 2.05 | % | | | 2.13 | % | | | 1.46 | % | | | 1.28 | % | | | 1.52 | % |
Portfolio turnover rate(d)(e) | | | 107 | % | | | 141 | % | | | 109 | % | | | 85 | % | | | 108 | % |
| (a) | Calculated based on average shares outstanding during the year. |
| (b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. |
| (c) | Does not include expenses of the underlying funds in which the Fund invests. |
| (d) | The Fund accounts for mortgage dollar roll transactions, when applicable, as purchases and sales which, as a result, can increase its portfolio turnover rate. |
| (e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Balanced Fund 87
Financial Highlights (continued)
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | |
| | |
| | | Year Ended September 30, | |
| | | | | | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | | | |
Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning of Year | | | $15.29 | | | | $13.85 | | | | $18.81 | | | | $16.06 | | | | $15.71 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 0.21 | | | | 0.20 | | | | 0.11 | | | | 0.09 | | | | 0.12 | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | 3.49 | | | | 1.45 | | | | (3.03 | ) | | | 2.77 | | | | 0.64 | |
Total from investment operations | | | 3.70 | | | | 1.65 | | | | (2.92 | ) | | | 2.86 | | | | 0.76 | |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (0.25 | ) | | | (0.21 | ) | | | (0.16 | ) | | | (0.07 | ) | | | (0.13 | ) |
Distributions from net realized gains | | | - | | | | - | | | | (1.88 | ) | | | (0.04 | ) | | | (0.28 | ) |
Total dividends and distributions | | | (0.25 | ) | | | (0.21 | ) | | | (2.04 | ) | | | (0.11 | ) | | | (0.41 | ) |
Net asset value, end of year | | | $18.74 | | | | $15.29 | | | | $13.85 | | | | $18.81 | | | | $16.06 | |
Total Return(b): | | | 24.39 | % | | | 11.89 | % | | | (17.58 | )% | | | 17.82 | % | | | 4.77 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year (000) | | | $53,052 | | | | $56,162 | | | | $65,656 | | | | $93,656 | | | | $95,166 | |
Average net assets (000) | | | $55,084 | | | | $63,635 | | | | $85,096 | | | | $96,972 | | | | $102,396 | |
Ratios to average net assets(c): | | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | 1.81 | % | | | 1.82 | % | | | 1.79 | % | | | 1.78 | % | | | 1.77 | % |
Expenses before waivers and/or expense reimbursement | | | 1.87 | % | | | 1.88 | % | | | 1.84 | % | | | 1.82 | % | | | 1.84 | % |
Net investment income (loss) | | | 1.24 | % | | | 1.30 | % | | | 0.65 | % | | | 0.50 | % | | | 0.75 | % |
Portfolio turnover rate(d)(e) | | | 107 | % | | | 141 | % | | | 109 | % | | | 85 | % | | | 108 | % |
| (a) | Calculated based on average shares outstanding during the year. |
| (b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. |
| (c) | Does not include expenses of the underlying funds in which the Fund invests. |
| (d) | The Fund accounts for mortgage dollar roll transactions, when applicable, as purchases and sales which, as a result, can increase its portfolio turnover rate. |
| (e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
88
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Class R Shares | | | | | | | | | | | | | | | | | | | | |
| | |
| | | Year Ended September 30, | |
| | | | | | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | | | |
Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning of Year | | | $15.19 | | | | $13.75 | | | | $18.70 | | | | $15.97 | | | | $15.64 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 0.27 | | | | 0.25 | | | | 0.16 | | | | 0.14 | | | | 0.16 | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | 3.46 | | | | 1.45 | | | | (3.02 | ) | | | 2.75 | | | | 0.64 | |
Total from investment operations | | | 3.73 | | | | 1.70 | | | | (2.86 | ) | | | 2.89 | | | | 0.80 | |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (0.31 | ) | | | (0.26 | ) | | | (0.21 | ) | | | (0.12 | ) | | | (0.19 | ) |
Distributions from net realized gains | | | - | | | | - | | | | (1.88 | ) | | | (0.04 | ) | | | (0.28 | ) |
Total dividends and distributions | | | (0.31 | ) | | | (0.26 | ) | | | (2.09 | ) | | | (0.16 | ) | | | (0.47 | ) |
Net asset value, end of year | | | $18.61 | | | | $15.19 | | | | $13.75 | | | | $18.70 | | | | $15.97 | |
Total Return(b): | | | 24.76 | % | | | 12.37 | % | | | (17.36 | )% | | | 18.15 | % | | | 5.16 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year (000) | | | $31 | | | | $31 | | | | $209 | | | | $427 | | | | $1,135 | |
Average net assets (000) | | | $28 | | | | $120 | | | | $402 | | | | $675 | | | | $1,439 | |
Ratios to average net assets(c): | | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | 1.47 | % | | | 1.47 | % | | | 1.47 | % | | | 1.47 | % | | | 1.47 | % |
Expenses before waivers and/or expense reimbursement | | | 27.98 | % | | | 7.12 | % | | | 3.39 | % | | | 2.72 | % | | | 2.61 | % |
Net investment income (loss) | | | 1.57 | % | | | 1.66 | % | | | 0.97 | % | | | 0.80 | % | | | 1.04 | % |
Portfolio turnover rate(d)(e) | | | 107 | % | | | 141 | % | | | 109 | % | | | 85 | % | | | 108 | % |
| (a) | Calculated based on average shares outstanding during the year. |
| (b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. |
| (c) | Does not include expenses of the underlying funds in which the Fund invests. |
| (d) | The Fund accounts for mortgage dollar roll transactions, when applicable, as purchases and sales which, as a result, can increase its portfolio turnover rate. |
| (e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Balanced Fund 89
Financial Highlights (continued)
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Class Z Shares | | | | | | | | | | | | | | | | | | | | |
| | |
| | | Year Ended September 30, | |
| | | | | | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | | | |
Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning of Year | | | $15.32 | | | | $13.87 | | | | $18.85 | | | | $16.09 | | | | $15.73 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 0.39 | | | | 0.35 | | | | 0.28 | | | | 0.27 | | | | 0.27 | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | 3.50 | | | | 1.46 | | | | (3.05 | ) | | | 2.77 | | | | 0.65 | |
Total from investment operations | | | 3.89 | | | | 1.81 | | | | (2.77 | ) | | | 3.04 | | | | 0.92 | |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (0.42 | ) | | | (0.36 | ) | | | (0.33 | ) | | | (0.24 | ) | | | (0.28 | ) |
Distributions from net realized gains | | | - | | | | - | | | | (1.88 | ) | | | (0.04 | ) | | | (0.28 | ) |
Total dividends and distributions | | | (0.42 | ) | | | (0.36 | ) | | | (2.21 | ) | | | (0.28 | ) | | | (0.56 | ) |
Net asset value, end of year | | | $18.79 | | | | $15.32 | | | | $13.87 | | | | $18.85 | | | | $16.09 | |
Total Return(b): | | | 25.70 | % | | | 13.02 | % | | | (16.74 | )% | | | 18.99 | % | | | 5.90 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year (000) | | | $116,245 | | | | $112,934 | | | | $113,095 | | | | $171,776 | | | | $147,635 | |
Average net assets (000) | | | $127,119 | | | | $115,259 | | | | $146,908 | | | | $165,225 | | | | $156,846 | |
Ratios to average net assets(c): | | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | 0.78 | % | | | 0.79 | % | | | 0.78 | % | | | 0.77 | % | | | 0.78 | % |
Expenses before waivers and/or expense reimbursement | | | 0.84 | % | | | 0.85 | % | | | 0.83 | % | | | 0.81 | % | | | 0.85 | % |
Net investment income (loss) | | | 2.28 | % | | | 2.33 | % | | | 1.65 | % | | | 1.50 | % | | | 1.74 | % |
Portfolio turnover rate(d)(e) | | | 107 | % | | | 141 | % | | | 109 | % | | | 85 | % | | | 108 | % |
| (a) | Calculated based on average shares outstanding during the year. |
| (b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. |
| (c) | Does not include expenses of the underlying funds in which the Fund invests. |
| (d) | The Fund accounts for mortgage dollar roll transactions, when applicable, as purchases and sales which, as a result, can increase its portfolio turnover rate. |
| (e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
90
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Class R6 Shares | | | | | | | | | | | | | | | | | | | | |
| | |
| | | Year Ended September 30, | |
| | | | | | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | | | |
Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning of Year | | | $15.33 | | | | $13.88 | | | | $18.86 | | | | $16.10 | | | | $15.74 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 0.41 | | | | 0.38 | | | | 0.30 | | | | 0.30 | | | | 0.29 | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | 3.50 | | | | 1.45 | | | | (3.05 | ) | | | 2.76 | | | | 0.65 | |
Total from investment operations | | | 3.91 | | | | 1.83 | | | | (2.75 | ) | | | 3.06 | | | | 0.94 | |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (0.45 | ) | | | (0.38 | ) | | | (0.35 | ) | | | (0.26 | ) | | | (0.30 | ) |
Distributions from net realized gains | | | - | | | | - | | | | (1.88 | ) | | | (0.04 | ) | | | (0.28 | ) |
Total dividends and distributions | | | (0.45 | ) | | | (0.38 | ) | | | (2.23 | ) | | | (0.30 | ) | | | (0.58 | ) |
Net asset value, end of year | | | $18.79 | | | | $15.33 | | | | $13.88 | | | | $18.86 | | | | $16.10 | |
Total Return(b): | | | 25.79 | % | | | 13.24 | % | | | (16.66 | )% | | | 19.12 | % | | | 6.01 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year (000) | | | $118,847 | | | | $87,387 | | | | $78,207 | | | | $85,533 | | | | $54,613 | |
Average net assets (000) | | | $95,201 | | | | $85,614 | | | | $88,957 | | | | $71,970 | | | | $44,247 | |
Ratios to average net assets(c): | | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | 0.65 | % | | | 0.65 | % | | | 0.65 | % | | | 0.65 | % | | | 0.65 | % |
Expenses before waivers and/or expense reimbursement | | | 0.73 | % | | | 0.73 | % | | | 0.72 | % | | | 0.72 | % | | | 0.74 | % |
Net investment income (loss) | | | 2.40 | % | | | 2.48 | % | | | 1.82 | % | | | 1.63 | % | | | 1.88 | % |
Portfolio turnover rate(d)(e) | | | 107 | % | | | 141 | % | | | 109 | % | | | 85 | % | | | 108 | % |
| (a) | Calculated based on average shares outstanding during the year. |
| (b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. |
| (c) | Does not include expenses of the underlying funds in which the Fund invests. |
| (d) | The Fund accounts for mortgage dollar roll transactions, when applicable, as purchases and sales which, as a result, can increase its portfolio turnover rate. |
| (e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Balanced Fund 91
Notes to Financial Statements
The Prudential Investment Portfolios, Inc. (the “Registered Investment Company” or “RIC”) is registered under the Investment Company Act of 1940, as amended (“1940 Act”), as an open-end management investment company. The RIC is organized as a Maryland Corporation. These financial statements relate only to the PGIM Balanced Fund (the “Fund”), a series of the RIC. The Fund is classified as a diversified fund for purposes of the 1940 Act.
The investment objective of the Fund is to seek income and long-term growth of capital.
The Fund follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 946 Financial Services — Investment Companies. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies conform to U.S. generally accepted accounting principles (“GAAP”). The Fund consistently follows such policies in the preparation of its financial statements.
Securities Valuation: The Fund holds securities and other assets and liabilities that are fair valued as of the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. As described in further detail below, the Fund’s investments are valued daily based on a number of factors, including the type of investment and whether market quotations are readily available. The RIC’s Board of Directors (the “Board”) has approved the Fund’s valuation policies and procedures for security valuation and designated PGIM Investments LLC (“PGIM Investments” or the “Manager”) as the “Valuation Designee,” as defined by Rule 2a-5(b) under the 1940 Act, to perform the fair value determination relating to all Fund investments. Pursuant to the Board’s oversight, the Valuation Designee has established a Valuation Committee to perform the duties and responsibilities of the Valuation Designee under Rule 2a-5. The valuation procedures permit the Fund to utilize independent pricing vendor services, quotations from market makers, and alternative valuation methods when market quotations are either not readily available or not deemed representative of fair value. Fair value is the estimated 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.
For the fiscal reporting year-end, securities and other assets and liabilities were fair valued at the close of the last U.S. business day. Trading in certain foreign securities may occur when the NYSE is closed (including weekends and holidays). Because such foreign securities
92
trade in markets that are open on weekends and U.S. holidays, the values of some of the Fund’s foreign investments may change on days when investors cannot purchase or redeem Fund shares.
Various inputs determine how the Fund’s investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the Schedule of Investments and referred to herein as the “fair value hierarchy” in accordance with FASB ASC Topic 820 Fair Value Measurement.
Common or preferred stocks, exchange-traded funds (“ETFs”) and derivative instruments, if applicable, 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 a 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.
Foreign equities traded on foreign securities exchanges are generally 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 up to the time the Fund is valued. 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 stock valuation policies discussed above.
Investments in open-end funds (other than ETFs) 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 Fund utilizes 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
PGIM Balanced Fund 93
Notes to Financial Statements (continued)
transaction prices for identical securities that have been used in excess of five business days. During the reporting period, there were no changes to report with respect to the valuation approach and/or valuation techniques discussed above.
Floating rate and other loans are generally valued at prices provided by approved independent pricing vendors. The pricing vendors utilize broker/dealer quotations and provide prices based on the average of such quotations. Floating rate and other loans valued using such vendor prices are generally classified as Level 2 in the fair value hierarchy. Floating rate and other loans valued based on a single broker quote or at the original transaction price in excess of five business days are classified as Level 3 in the fair value hierarchy.
OTC and centrally cleared 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 Fund 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 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 derivative price is based on evaluating observable inputs, including but not limited to, underlying asset prices, indices, spreads, interest rates and exchange rates. Certain derivatives may be classified as Level 3 when valued using the market approach by obtaining a single broker quote or when utilizing 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.
Securities and other assets that cannot be priced according to the methods described above are valued based on policies and procedures 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. Altering one or more unobservable inputs may result in a significant change to a Level 3 security’s fair value measurement.
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
94
the issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; and any available analyst media or other reports or information deemed reliable by the Valuation Designee 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 unaffiliated mutual funds to calculate their net asset values.
Foreign Currency Translation: The books and records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis:
(i) market value of investment securities, other assets and liabilities — at the exchange rate as of the valuation date;
(ii) purchases and sales of investment securities, income and expenses — at the rates of exchange prevailing on the respective dates of such transactions.
Although the net assets of the Fund are presented at the foreign exchange rates and market values at the close of the period, the Fund does not 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 Fund 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 unrealized and realized foreign currency gains (losses) are included in the reported net change in unrealized appreciation (depreciation) on investments and net realized gains (losses) on investment transactions on the Statements of Operations. Notwithstanding the above, the Fund 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 the disposition of holdings of foreign currencies, currency gains (losses) realized between the trade and settlement dates on investment transactions, and the difference between the amounts of interest, dividends and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) arise from valuing foreign currency denominated assets and liabilities (other than investments) at period end exchange rates.
Forward and Cross Currency Contracts: A forward currency contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The Fund enters into forward currency contracts, as defined in the prospectus, in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings or on specific receivables and payables denominated in a foreign currency and to gain
PGIM Balanced Fund 95
Notes to Financial Statements (continued)
exposure to certain currencies. The contracts are valued daily at current forward exchange rates and any unrealized gain (loss) is included in net unrealized appreciation or depreciation on forward and cross currency contracts. Gain (loss) is realized on the settlement date of the contract equal to the difference between the settlement value of the original and negotiated forward contracts. This gain (loss), if any, is included in net realized gain (loss) on forward and cross currency contract transactions. Risks may arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts. Forward currency contracts involve risks from currency exchange rate and credit risk in excess of the amounts reflected on the Statement of Assets and Liabilities. The Fund’s maximum risk of loss from counterparty credit risk is the net value of the cash flows to be received from the counterparty at the end of the contract’s life. A cross currency contract is a forward contract where a specified amount of one foreign currency will be exchanged for a specified amount of another foreign currency.
Options: The Fund purchased and/or wrote options in order to hedge against adverse market movements or fluctuations in value caused by changes in prevailing interest rates, value of equities or foreign currency exchange rates with respect to securities or financial instruments which the Fund currently owns or intends to purchase. The Fund may also use options to gain additional market exposure. The Fund’s 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 Fund purchases an option, it pays a premium and an amount equal to that premium is recorded as an asset. When the Fund 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 Fund 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 of the purchase in determining whether the Fund 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 transactions.
The Fund, 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 Fund bears the market risk of an unfavorable change in the price of the security or financial instrument underlying the written option. The Fund, as purchaser of an OTC option, bears 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 Fund since the exchanges’ clearinghouse acts as counterparty to all exchange-traded options and guarantees the options contracts against default.
96
When the Fund writes an option on a swap, an amount equal to any premium received by the Fund 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 Fund 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 Fund 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 Fund will be obligated to be party to a swap agreement if an option on a swap is exercised. The Fund entered into options on swaps that are executed through a central clearing facility, such as a registered exchange. Such options pay or receive an amount known as “variation margin”, based on daily changes in the valuation of the contract. The daily variation margin, rather than the contract market value, is recorded for financial statement purposes on the Statement of Assets and Liabilities.
Financial Futures Contracts: A financial futures contract is an agreement to purchase (long) or sell (short) an agreed amount of securities at a set price for delivery on a future date. Upon entering into a financial futures contract, the Fund is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount. This amount is known as the “initial margin.” Subsequent payments, known as “variation margin,” are made or received by the Fund each day, depending on the daily fluctuations in the value of the underlying security. Such variation margin is recorded for financial statement purposes on a daily basis as unrealized gain (loss). When the contract expires or is closed, the gain (loss) is realized and is presented in the Statement of Operations as net realized gain (loss) on futures transactions.
The Fund invested in financial futures contracts in order to hedge its existing portfolio securities, or securities the Fund intends to purchase, against fluctuations in value caused by changes in prevailing interest rates. Should interest rates move unexpectedly, the Fund may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. The use of futures transactions involves the risk of imperfect correlation in movements in the price of futures contracts, interest rates and the underlying hedged assets. Since futures contracts are exchange-traded, there is minimal counterparty credit risk to the Fund since the exchanges’ clearinghouse acts as counterparty to all exchange-traded futures and guarantees the futures contracts against default.
Swap Agreements: The Fund entered into certain types of swap agreements detailed in the disclosures below. 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 a counterparty (“OTC-traded”) or through a central clearing facility, such as a registered 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 swap agreements. Centrally cleared swaps pay or receive an amount known as “variation margin”, based on daily changes in the
PGIM Balanced Fund 97
Notes to Financial Statements (continued)
valuation of the swap contract. For OTC-traded, upfront premiums paid and received are shown as swap premiums paid and swap premiums received in the Statement of Assets and Liabilities. Risk of loss may exceed amounts recognized on the Statement of Assets and Liabilities. Swap agreements outstanding at period end, if any, are listed on the Schedule of Investments.
Interest Rate Swaps: Interest rate swaps represent an agreement 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 Fund is subject to interest rate risk exposure in the normal course of pursuing its investment objective. The Fund used interest rate swaps to maintain its ability to generate steady cash flow by receiving a stream of fixed rate payments or to increase exposure to prevailing market rates by receiving floating rate payments. The Fund’s maximum risk of loss from counterparty credit risk is the discounted net present value of the cash flows to be received from the counterparty over the contract’s remaining life.
Credit Default Swaps (“CDS”): 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 Fund is subject to credit risk in the normal course of pursuing its investment objectives, and as such, has entered into CDS contracts 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” because the higher the contract value rises, the more the credit deteriorates. The value of the CDS contract increases for the protection buyer if the spread increases. The Fund’s maximum risk of loss from counterparty credit risk for purchased CDS is the inability of the counterparty to honor the contract up to the notional value due to a credit event.
As a seller of protection on credit default swap agreements, the Fund generally receives an agreed upon payment from the buyer of protection throughout the term of the swap, provided no credit event occurs. As the seller, the Fund effectively increases its investment risk because, in addition to its total net assets, the Fund may be subject to investment exposure on the notional amount of the swap.
98
The maximum amount of the payment that the Fund, 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 Fund entered into for the same referenced entity or index. As a buyer of protection, the Fund 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 where the Fund is the seller of protection as of period end are disclosed in the footnotes to the Schedule 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. Wider credit spreads and increased 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 receives 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 pays a defined amount. The Fund is subject to risk exposures associated with the referenced asset in the normal course of pursuing its investment objectives. The Fund entered into total return swaps to manage its exposure to a security or an index. The Fund’s maximum risk of loss from counterparty credit risk is the change in the value of the security, in the Fund’s favor, from the point of entering into the contract.
Floating Rate and Other Loans: The Fund invested in floating rate and other loans. Floating rate and other loans include loans that are privately negotiated between a corporate borrower and one or more financial institutions, including, but not limited to, term loans, revolvers, and other instruments issued in the floating rate and other loans market. The Fund acquire interests in loans directly (by way of assignment from the selling institution) and/or indirectly (by way of the purchase of a participation interest from the selling institution). Under a floating rate and other loans assignment, the Fund generally will succeed to all the rights and obligations of an assigning lending institution and become a lender under the loan agreement with the relevant borrower in connection with that loan. Under a floating rate and other loans participation, the Fund generally will have a contractual relationship only with the lender, not with the relevant borrower. As a result, the Fund generally will have the right to receive payments of principal, interest, and any fees to which they are entitled only from the lender selling the participation and only upon receipt by the lender of the payments from the relevant borrower. The Fund may not directly benefit from the collateral supporting the debt obligation in which they have purchased the
PGIM Balanced Fund 99
Notes to Financial Statements (continued)
participation. As a result, the Fund will assume the credit risk of both the borrower and the institution selling the participation to the Fund.
Mortgage-Backed and Asset-Backed Securities: Mortgage-backed securities are pass-through securities, meaning that principal and interest payments made by the borrower on the underlying mortgages are passed through to the Fund. Asset-backed securities directly or indirectly represent a participation interest in, or are secured by and payable from, a stream of payments generated by particular assets such as motor vehicle or credit card receivables. Asset-backed securities may be classified as pass-through certificates or collateralized obligations, such as collateralized bond obligations, collateralized loan obligations and other similarly structured securities. The value of mortgage-backed and asset-backed securities varies with changes in interest rates and may be affected by changes in credit quality or value of the mortgage loans or other assets that support the securities.
Stripped mortgage-backed securities are usually structured with two classes that receive different proportions of the interest (“IO”) and principal (“PO”) distributions on a pool of mortgage assets. Payments received for IOs are included in interest income on the Statements of Operations. Because no principal will be received at the maturity of an IO, adjustments are made to the cost of the security on a monthly basis until maturity. These adjustments are included in interest income on the Statements of Operations. Payments received for POs are treated as reductions to the cost and par value of the securities.
Master Netting Arrangements: The RIC, on behalf of the Fund, 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 all or a portion of the Fund. A master netting arrangement between the Fund and the counterparty permits the Fund to offset amounts payable by the Fund to the same counterparty against amounts to be received and by the receipt of collateral from the counterparty by the Fund to cover the Fund’s exposure to the counterparty. However, there is no assurance that such mitigating factors are easily enforceable. 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.
The RIC, on behalf of the Fund, is a party to International Swaps and Derivatives Association, Inc. (“ISDA”) 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
100
early termination. With respect to certain counterparties, in accordance with the terms of the Master Agreements, collateral posted to the Fund is held in a segregated account by the Fund’s custodian and with respect to those amounts which can be sold or re-pledged, is presented in the Schedule of Investments. Collateral pledged by the Fund is segregated by the Fund’s custodian and identified in the Schedule 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 Fund and the applicable counterparty. Collateral requirements are determined based on the Fund’s net position with each counterparty. Termination events applicable to the Fund may occur upon a decline in the Fund’s 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 Fund’s counterparties to elect early termination could impact the Fund’s future derivative activity.
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, the counterparty to the agreement may default on its obligation to perform or disagree on the contractual terms of the agreement, and changes in net interest rates will be unfavorable. In connection with these agreements, securities in the portfolio may be identified 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.
Short sales and OTC contracts, including forward foreign currency exchange contracts, swaps, forward rate agreements and written options involve elements of both market and credit risk in excess of the amounts reflected on the Statement of Assets and Liabilities, if applicable. Such risks may be mitigated by engaging in master netting arrangements.
Rights: The Fund held rights acquired either through a direct purchase 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 Fund until exercised, sold or expired. Rights are valued at fair value in accordance with the Board approved fair valuation procedures.
Payment-In-Kind: The Fund invested in the open market or received pursuant to debt restructuring securities that pay-in-kind (“PIK”) the interest due on such debt instruments.
PGIM Balanced Fund 101
Notes to Financial Statements (continued)
The PIK interest, computed at the contractual rate specified, is added to the existing principal balance of the debt when issued bonds have the same terms as the bond or recorded as a separate bond when terms are different from the existing debt, and is recorded as interest income.
Delayed-Delivery Transactions: The Fund purchased or sold securities on a when-issued or delayed-delivery and forward commitment basis, including TBA securities. These transactions involve a commitment by the Fund 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 Fund 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 Fund 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 Fund 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 realized gain (loss). When selling a security on a delayed-delivery basis, the Fund forfeits its eligibility to realize future gains (losses) with respect to the security.
Securities Lending: The Fund lends 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. In the event of significant appreciation in value of the securities on loan on the last business day of the reporting period, the financial statements may reflect a collateral value that is less than the market value of the loaned securities. Such shortfall is remedied as described above. Loans are subject to termination at the option of the borrower or the Fund. Upon termination of the loan, the borrower will return to the Fund securities identical to the loaned securities. The remaining open loans of the securities lending transactions are considered overnight and continuous. Should the borrower of the securities fail financially, the Fund has the right to repurchase the securities in the open market using the collateral.
The Fund 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, which are reflected in interest income or unaffiliated dividend income based on the nature of the payment on the Statement of Operations. The Fund also continues to recognize any unrealized gain (loss) in the market price of the securities loaned and on the change in the
102
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 in the Statement of Operations.
Equity and Mortgage Real Estate Investment Trusts (collectively “REITs”): The Fund invested 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. When material, 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, or for certain foreign securities, when the Fund becomes aware of such dividends. 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 an accrual basis, which may require the use of certain estimates by management that may differ from actual expense amounts. Net investment income or loss (other than class specific expenses and waivers, which are allocated as noted below) 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. Class specific expenses and waivers, where applicable, are charged to the respective share classes. Such class specific expenses and waivers include distribution fees and distribution fee waivers, shareholder servicing fees, transfer agent’s fees and expenses, registration fees and fee waivers and/or expense reimbursements, as applicable.
Taxes: It is the Fund’s policy to continue to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net investment income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required. Withholding taxes on foreign dividends, interest and capital gains, if any, are recorded, net of reclaimable amounts, at the time the related income is earned.
The Fund is subject to foreign income taxes imposed by certain countries in which it invests. Additionally, capital gains realized upon disposition of securities issued in or by certain foreign countries are subject to capital gains tax imposed by those countries. All taxes are computed in accordance with the applicable foreign tax law, and, to the extent permitted, capital losses are used to offset capital gains. Taxes attributable to income are accrued by the Fund as a reduction of income. Current and deferred tax expense attributable to capital gains is reflected as a component of realized or change in unrealized gain/loss on securities in the accompanying financial statements. To the extent that the Fund has country specific capital loss carryforwards, such carryforwards are applied against net unrealized gains when determining the deferred tax liability. Any deferred tax liability incurred by the Fund is
PGIM Balanced Fund 103
Notes to Financial Statements (continued)
included in either Other liabilities or Deferred tax liability on the accompanying Statement of Assets and Liabilities.
Dividends and Distributions: Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from GAAP, are recorded on the ex-date. Permanent book/tax differences relating to income and gain (loss) are reclassified between total distributable earnings (loss) and paid-in capital in excess of par, as appropriate. The chart below sets forth the expected frequency of dividend and capital gains distributions to shareholders. Various factors may impact the frequency of dividend distributions to shareholders, including but not limited to adverse market conditions or portfolio holding-specific events.
| | | | |
| | |
| Expected Distribution Schedule to Shareholders* | | Frequency | |
| |
Net Investment Income | | | Quarterly | |
| |
Short-Term Capital Gains | | | Annually | |
| |
Long-Term Capital Gains | | | Annually | |
| * | Under certain circumstances, the Fund may make more than one distribution of short-term and/or long-term capital gains during a fiscal year. |
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 those estimates.
The RIC, on behalf of the Fund, has entered into a management agreement with the Manager pursuant to which it has responsibility for all investment advisory services, including supervision of the subadviser’s performance of such services, and for rendering administrative services.
The Manager has entered into subadvisory agreements with PGIM, Inc., which provides subadvisory services to the Fund through its business unit PGIM Fixed Income, PGIM Limited, and PGIM Quantitative Solutions LLC (collectively the “subadviser”). The Manager pays for the services of subadviser.
104
Fees payable under the management agreement are computed daily and paid monthly. For the reporting period ended September 30, 2024, the contractual and effective management fee rates were as follows:
| | | | |
| | |
| Contractual Management Rate | | Effective Management Fee, before any waivers and/or expense reimbursements | |
| |
0.65% of average daily net assets up to and including $1 billion; | | | 0.65% | |
| |
0.60% on average daily net assets over $1 billion. | | | | |
The Manager has contractually agreed, through January 31, 2026, to limit total annual operating expenses after fee waivers and/or expense reimbursements. This contractual waiver excludes interest, brokerage, taxes (such as income and foreign withholding taxes, stamp duty and deferred tax expenses), acquired fund fees and expenses, extraordinary expenses, and certain other expenses of the Fund such as dividend and interest expense and broker charges on short sales.
Where applicable, the Manager agrees to waive management fees or shared operating expenses on any share class to the same extent that it waives such expenses on any other share class. In addition, total annual operating expenses for Class R6 shares will not exceed total annual operating expenses for Class Z shares. Fees and/or expenses waived and/or reimbursed by the Manager for the purpose of preventing the expenses from exceeding a certain expense ratio limit may be recouped by the Manager within the same fiscal year during which such waiver and/or reimbursement is made if such recoupment can be realized without exceeding the expense limit in effect at the time of the waiver/reimbursement and/or recoupment for that fiscal year, as applicable. The expense limitations attributable to each class are as follows:
| | | | |
| | |
| Class | | Expense
Limitations | |
| |
A | | | 1.00% | |
| |
C | | | — | |
| |
R | | | 1.47 | |
| |
Z | | | — | |
| |
R6 | | | 0.65 | |
The RIC, on behalf of the Fund, has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class A, Class C, Class R, Class Z and Class R6 shares of the Fund. The Fund compensates PIMS for distributing and servicing the Fund’s Class A, Class C and Class R shares, pursuant to the plans of distribution (the “Distribution Plans”), regardless of expenses actually incurred by PIMS.
Pursuant to the Distribution Plans, the Fund compensates PIMS for distribution related activities at an annual rate based on average daily net assets per class. PIMS has contractually agreed through January 31, 2026 to limit such fees on certain classes based on the average net assets. The distribution fees are accrued daily and payable monthly.
PGIM Balanced Fund 105
Notes to Financial Statements (continued)
The Fund’s annual gross and net distribution rates, where applicable, are as follows:
| | | | |
| | | |
| Class | | Gross Distribution Fee | | Net Distribution Fee |
| | |
A | | 0.30% | | 0.30% |
| | |
C | | 1.00 | | 1.00 |
| | |
R | | 0.75 | | 0.50 |
| | |
Z | | N/A | | N/A |
| | |
R6 | | N/A | | N/A |
For the year ended September 30, 2024, PIMS received front-end sales charges (“FESL”) resulting from sales of certain class shares and contingent deferred sales charges (“CDSC”) imposed upon redemptions by certain shareholders. From these fees, PIMS paid such sales charges to broker-dealers, who in turn paid commissions to salespersons and incurred other distribution costs. The sales charges are as follows where applicable:
| | | | | | | | |
| | | |
| Class | | FESL | | | CDSC | |
| | |
A | | $ | 401,153 | | | $ | 9,358 | |
| | |
C | | | — | | | | 2,984 | |
PGIM Investments, PGIM, Inc., PGIM Limited, PIMS and PGIM Quantitative Solutions are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
| 4. | 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 Fund’s transfer agent and shareholder servicing 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 invest its overnight sweep cash in the PGIM Core Government Money Market Fund (the “Core Government Fund”), a series of the Prudential Government Money Market Fund, Inc., and its securities lending cash collateral in the PGIM Institutional Money Market Fund (the “Money Market Fund”), a series of Prudential Investment Portfolios 2, each registered under the 1940 Act and managed by PGIM Investments. PGIM Investments and/or its affiliates are paid fees or reimbursed for providing their services to the Core Government Fund and the Money Market Fund. In addition to the realized and unrealized gains on investments in the Core Government Fund and the Money Market Fund, earnings from such investments are disclosed on the Statement of Operations as “Affiliated dividend income” and “Income from securities lending, net”, respectively.
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, subject to certain conditions, permits purchase and sale transactions among affiliated
106
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/trustees, and/or common officers. For the year ended September 30, 2024, no Rule 17a-7 transactions were entered into by the Fund.
The aggregate cost of purchases and proceeds from sales of portfolio securities (excluding short-term investments and U.S. Government securities) for the reporting period ended September 30, 2024, were as follows:
| | |
| Cost of Purchases | | Proceeds from Sales |
| |
$949,641,841 | | $1,028,510,558 |
A summary of the cost of purchases and proceeds from sales of shares of affiliated mutual funds for the year ended September 30, 2024, is presented as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Value, Beginning of Year | | | Cost of Purchases | | | Proceeds from Sales | | | Change in Unrealized Gain
(Loss) | | | Realized Gain
(Loss) | | | Value, End of Year | | | Shares, End of Year | | | Income | |
| | Long-Term Investment - Affiliated Exchange Traded Fund(1)(wa): | |
|
| | PGIM AAA CLO ETF | |
| | | | | | | | |
| | $ — | | | | $ 1,053,777 | | | | $ — | | | | $3,868 | | | | $ — | | | | $ 1,057,645 | | | | 20,641 | | | | $ 7,445 | |
| | | |
| | Short-Term Investments - Affiliated Mutual Funds: | | | | | | | | | | | | | |
|
| | PGIM Core Government Money Market Fund (7-day effective yield 5.140%)(1)(wa) | |
| | $ 9,193,037 | | | | $283,354,710 | | | | $282,583,953 | | | | $ — | | | | $ — | | | | $ 9,963,794 | | | | 9,963,794 | | | | $883,493 | |
|
| | PGIM Institutional Money Market Fund (7-day effective yield 5.160%)(1)(b)(wa) | |
| | | | | | | |
| | 2,492,330 | | | | 31,566,863 | | | | 30,861,927 | | | | 18 | | | | 1,527 | | | | 3,198,811 | | | | 3,200,091 | | | | 8,410 | (2) |
| | | | | | | |
| | $11,685,367 | | | | $314,921,573 | | | | $313,445,880 | | | | $ 18 | | | | $1,527 | | | | $13,162,605 | | | | | | | | $891,903 | |
| | | | | | | |
| | $11,685,367 | | | | $315,975,350 | | | | $313,445,880 | | | | $3,886 | | | | $1,527 | | | | $14,220,250 | | | | | | | | $899,348 | |
| (1) | The Fund did not have any capital gain distributions during the reporting period. |
| (2) | The amount, or a portion thereof, represents the affiliated securities lending income shown on the Statement of Operations. |
| (b) | Represents security, or portion thereof, purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
| (wa) | Represents investments in Funds affiliated with the Manager. |
| 6. | Distributions and Tax Information |
Distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from GAAP, are recorded on the ex-date.
PGIM Balanced Fund 107
Notes to Financial Statements (continued)
For the year ended September 30, 2024, the tax character of dividends paid as reflected in the Statement of Changes in Net Assets were as follows:
| | | | | | |
| | | | |
Ordinary
Income | | Long-Term Capital Gains | | Tax Return of Capital | | Total Dividends and Distributions |
| | | |
$22,202,204 | | $— | | $— | | $22,202,204 |
For the year ended September 30, 2023, the tax character of dividends paid as reflected in the Statement of Changes in Net Assets were as follows:
| | | | | | |
| | | | |
Ordinary
Income | | Long-Term Capital Gains | | Tax Return of Capital | | Total Dividends and Distributions |
| | | |
$20,016,605 | | $— | | $— | | $20,016,605 |
For the year ended September 30, 2024, the Fund had the following amounts of accumulated undistributed earnings on a tax basis:
| | | | | | |
| | | | |
| | | Undistributed Ordinary Income | | Undistributed Long-Term Capital Gains | | |
| | | |
| | | $21,440,781 | | $29,744,943 | | |
The United States federal income tax basis of the Fund’s investments and the net unrealized appreciation as of September 30, 2024 were as follows:
| | | | | | | | |
| | | | |
| Tax Basis | | Gross Unrealized Appreciation | | Gross Unrealized Depreciation | | Net Unrealized Appreciation |
| | | |
| $833,493,888 | | $233,051,640 | | $(36,323,101) | | $ | 196,728,539 | |
The difference between GAAP and tax basis was primarily attributable to deferred losses on wash sales, defaulted securities, investments in passive foreign investment companies, mark-to-market of futures and forwards contracts and other cost basis differences between GAAP and tax accounting.
For federal income tax purposes, the Fund had an approximated capital loss carryforward as of September 30, 2024 which can be carried forward for an unlimited period. No capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such losses.
| | |
| | |
Capital Loss Carryforward | | Capital Loss Carryforward Utilized |
| |
$— | | $7,029,000 |
The Manager has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years and has concluded that no provision for income tax is
108
required in the Fund’s financial statements for the current reporting period. Since tax authorities can examine previously filed tax returns, the Fund’s U.S. federal and state tax returns for each of the four fiscal years up to the most recent fiscal year ended September 30, 2024 are subject to such review.
The Fund offers Class A, Class C, Class R, Class Z and Class R6 shares. Class A shares are sold with a maximum front-end sales charge of 3.25%. Investors who purchase $500,000 or more of Class A shares and sell those shares within 12 months of purchase are subject to a CDSC of 1% on sales although these purchases are not subject to a front-end sales charge. The Class A CDSC is waived for certain retirement and/or benefit plans. A special exchange privilege is also available for shareholders who qualified to purchase Class A shares at net asset value. Class C shares are sold with a CDSC of 1% on sales made within 12 months of purchase. Class C shares will automatically convert to Class A shares on a monthly basis approximately eight years (ten years prior to January 22, 2021) after purchase. Class R, Class Z and Class R6 shares are not subject to any sales or redemption charges and are available exclusively for sale to a limited group of investors.
Under certain circumstances, an exchange may be made from specified share classes of the Fund to one or more other share classes of the Fund as presented in the table of transactions in shares of common stock, below.
The RIC is authorized to issue 6,625,000,000 shares of capital stock at $0.001 par value per share, 923,000,000 of which are designated as shares of the Fund. The authorized shares of the Fund are currently classified and designated as follows:
| | | | |
| | |
| Class | | Number of Shares | |
A | | | 125,000,000 | |
B | | | 3,000,000 | |
C | | | 25,000,000 | |
R | | | 125,000,000 | |
Z | | | 280,000,000 | |
T | | | 75,000,000 | |
R6 | | | 290,000,000 | |
The Fund currently does not have any Class B or Class T shares outstanding.
As of September 30, 2024, Prudential, through its affiliated entities, including affiliated funds (if applicable), owned shares of the Fund as follows:
| | | | |
| Class | | Number of Shares | | Percentage of Outstanding Shares |
| | |
Z | | 70,556 | | 1.1% |
PGIM Balanced Fund 109
Notes to Financial Statements (continued)
At the reporting period end, the number of shareholders holding greater than 5% of the Fund are as follows:
| | | | | | | | | | |
| | | |
| | | Number of Shareholders | | Percentage of Outstanding Shares |
| | |
Affiliated | | | | — | | | | | —% | |
| | |
Unaffiliated | | | | 3 | | | | | 47.4 | |
Transactions in shares of common stock were as follows:
| | | | | | | | |
| | | |
| Share Class | | Shares | | | Amount | |
| | |
Class A | | | | | | | | |
| | |
Year ended September 30, 2024: | | | | | | | | |
| | |
Shares sold | | | 3,068,074 | | | $ | 51,938,560 | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 917,730 | | | | 15,579,523 | |
| | |
Shares purchased | | | (6,444,054 | ) | | | (109,034,426 | ) |
| | |
Net increase (decrease) in shares outstanding before conversion | | | (2,458,250 | ) | | | (41,516,343 | ) |
| | |
Shares issued upon conversion from other share class(es) | | | 592,652 | | | | 10,105,067 | |
| | |
Shares purchased upon conversion into other share class(es) | | | (368,760 | ) | | | (6,334,630 | ) |
| | |
Net increase (decrease) in shares outstanding | | | (2,234,358 | ) | | $ | (37,745,906 | ) |
| | |
Year ended September 30, 2023: | | | | | | | | |
| | |
Shares sold | | | 2,635,515 | | | $ | 39,517,647 | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 926,541 | | | | 14,076,612 | |
| | |
Shares purchased | | | (6,549,489 | ) | | | (98,470,568 | ) |
| | |
Net increase (decrease) in shares outstanding before conversion | | | (2,987,433 | ) | | | (44,876,309 | ) |
| | |
Shares issued upon conversion from other share class(es) | | | 568,754 | | | | 8,577,200 | |
| | |
Shares purchased upon conversion into other share class(es) | | | (229,294 | ) | | | (3,429,667 | ) |
| | |
Net increase (decrease) in shares outstanding | | | (2,647,973 | ) | | $ | (39,728,776 | ) |
| | |
Class C | | | | | | | | |
| | |
Year ended September 30, 2024: | | | | | | | | |
| | |
Shares sold | | | 332,765 | | | $ | 5,710,781 | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 47,139 | | | | 803,396 | |
| | |
Shares purchased | | | (598,299 | ) | | | (10,153,103 | ) |
| | |
Net increase (decrease) in shares outstanding before conversion | | | (218,395 | ) | | | (3,638,926 | ) |
| | |
Shares purchased upon conversion into other share class(es) | | | (622,915 | ) | | | (10,690,497 | ) |
| | |
Net increase (decrease) in shares outstanding | | | (841,310 | ) | | $ | (14,329,423 | ) |
110
| | | | | | | | |
| | | |
| Share Class | | Shares | | | Amount | |
| | |
Year ended September 30, 2023: | | | | | | | | |
| | |
Shares sold | | | 317,347 | | | $ | 4,806,068 | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 54,766 | | | | 838,470 | |
| | |
Shares purchased | | | (857,019 | ) | | | (13,004,371 | ) |
| | |
Net increase (decrease) in shares outstanding before conversion | | | (484,906 | ) | | | (7,359,833 | ) |
| | |
Shares purchased upon conversion into other share class(es) | | | (584,059 | ) | | | (8,856,669 | ) |
| | | |
Net increase (decrease) in shares outstanding | | | (1,068,965 | ) | | $ | (16,216,502 | ) |
| | |
Class R | | | | | | | | |
| | |
Year ended September 30, 2024: | | | | | | | | |
| | |
Shares sold | | | 172 | | | $ | 2,919 | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 30 | | | | 512 | |
| | |
Shares purchased | | | (545 | ) | | | (8,481 | ) |
| | |
Net increase (decrease) in shares outstanding | | | (343 | ) | | $ | (5,050 | ) |
| | |
Year ended September 30, 2023: | | | | | | | | |
| | |
Shares sold | | | 212 | | | $ | 3,184 | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 116 | | | | 1,742 | |
| | |
Shares purchased | | | (13,494 | ) | | | (200,300 | ) |
| | |
Net increase (decrease) in shares outstanding | | | (13,166 | ) | | $ | (195,374 | ) |
| | |
Class Z | | | | | | | | |
| | |
Year ended September 30, 2024: | | | | | | | | |
| | |
Shares sold | | | 1,377,259 | | | $ | 23,055,855 | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 171,894 | | | | 2,946,940 | |
| | |
Shares purchased | | | (3,100,549 | ) | | | (54,624,505 | ) |
| | |
Net increase (decrease) in shares outstanding before conversion | | | (1,551,396 | ) | | | (28,621,710 | ) |
| | |
Shares issued upon conversion from other share class(es) | | | 380,317 | | | | 6,582,681 | |
| | |
Shares purchased upon conversion into other share class(es) | | | (11,530 | ) | | | (202,045 | ) |
| | |
Net increase (decrease) in shares outstanding | | | (1,182,609 | ) | | $ | (22,241,074 | ) |
| | |
Year ended September 30, 2023: | | | | | | | | |
| | |
Shares sold | | | 1,322,403 | | | $ | 20,198,499 | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 166,626 | | | | 2,552,920 | |
| | |
Shares purchased | | | (2,431,784 | ) | | | (36,737,614 | ) |
| | |
Net increase (decrease) in shares outstanding before conversion | | | (942,755 | ) | | | (13,986,195 | ) |
| | |
Shares issued upon conversion from other share class(es) | | | 180,779 | | | | 2,708,195 | |
| | |
Shares purchased upon conversion into other share class(es) | | | (18,908 | ) | | | (290,638 | ) |
| | |
Net increase (decrease) in shares outstanding | | | (780,884 | ) | | $ | (11,568,638 | ) |
PGIM Balanced Fund 111
Notes to Financial Statements (continued)
| | | | | | | | |
| | | |
| Share Class | | Shares | | | Amount | |
| | |
Class R6 | | | | | | | | |
| | |
Year ended September 30, 2024: | | | | | | | | |
| | |
Shares sold | | | 2,170,512 | | | $ | 38,937,822 | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 141,410 | | | | 2,422,655 | |
| | |
Shares purchased | | | (1,719,082 | ) | | | (29,664,467 | ) |
| | |
Net increase (decrease) in shares outstanding before conversion | | | 592,840 | | | | 11,696,010 | |
| | |
Shares issued upon conversion from other share class(es) | | | 34,032 | | | | 596,688 | |
| | |
Shares purchased upon conversion into other share class(es) | | | (3,205 | ) | | | (57,264 | ) |
| | |
Net increase (decrease) in shares outstanding | | | 623,667 | | | $ | 12,235,434 | |
| | |
Year ended September 30, 2023: | | | | | | | | |
| | |
Shares sold | | | 1,103,799 | | | $ | 16,811,982 | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 140,654 | | | | 2,158,499 | |
| | |
Shares purchased | | | (1,263,543 | ) | | | (19,184,924 | ) |
| | |
Net increase (decrease) in shares outstanding before conversion | | | (19,090 | ) | | | (214,443 | ) |
| | |
Shares issued upon conversion from other share class(es) | | | 85,274 | | | | 1,302,210 | |
| | |
Shares purchased upon conversion into other share class(es) | | | (673 | ) | | | (10,631 | ) |
| | |
Net increase (decrease) in shares outstanding | | | 65,511 | | | $ | 1,077,136 | |
The RIC, on behalf of the Fund, along with other affiliated registered investment companies (the “Participating 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 table below provides details of the current SCA in effect at the reporting period-end as well as the prior SCA.
| | | | |
| | | |
| | | Current SCA | | Prior SCA |
| | |
Term of Commitment | | 9/27/2024 – 9/25/2025 | | 9/29/2023 – 9/26/2024 |
| | |
Total Commitment | | $ 1,200,000,000 | | $ 1,200,000,000 |
| | |
Annualized Commitment Fee on the Unused Portion of the SCA | | 0.15% | | 0.15% |
| | |
Annualized Interest Rate on Borrowings | | 1.00% plus the higher of (1)
the effective federal funds
rate, (2) the daily SOFR
rate plus 0.10% or (3) zero
percent | | 1.00% plus the higher of (1)
the effective federal funds
rate, (2) the daily SOFR
rate plus 0.10% or (3) zero
percent |
Certain affiliated registered investment companies that are parties to the SCA include portfolios that are subject to a predetermined mathematical formula used to manage certain benefit guarantees offered under variable annuity contracts. The formula may result in large scale asset flows into and out of these portfolios. Consequently, these portfolios may be more
112
likely to utilize the SCA for purposes of funding redemptions. It may be possible for those portfolios to fully exhaust the committed amount of the SCA, thereby requiring the Manager to allocate available funding per a Board-approved methodology designed to treat the Participating Funds in the SCA equitably.
The Fund utilized the SCA during the year ended September 30, 2024. The average daily balance for the 1 day that the Fund had loans outstanding during the period was approximately $1,577,000, borrowed at a weighted average interest rate of 6.43%. The maximum loan outstanding amount during the period was $1,577,000. At September 30, 2024, the Fund did not have an outstanding loan amount.
| 9. | Risks of Investing in the Fund |
The Fund’s principal risks include, but are not limited to, some or all of the risks discussed below. For further information on the Fund’s risks, please refer to the Fund’s Prospectus and Statement of Additional Information.
Asset Allocation Risk: PGIM Quantitative Solutions may allocate assets to an asset class that underperforms other classes. For example, the Fund may be overweight in equities when the stock market is falling and the fixed income market is rising. Likewise, the Fund may be overweight in fixed income securities when fixed income markets are falling and the equity markets are rising. Allocations to underperforming or volatile asset classes or other changes in asset allocations could lead to increased volatility in the Fund’s portfolio.
Blend Style Risk: The Fund’s blend investment style may subject the Fund to risks of both value and growth investing. The portion of the Fund’s portfolio that makes investments pursuant to a growth strategy may be subject to above-average fluctuations as a result of seeking higher than average capital growth. The portion of the Fund’s portfolio that makes investments pursuant to a value strategy may be subject to the risk that the market may not recognize a security’s intrinsic value for long periods of time or at all, or that a stock judged to be undervalued may actually be appropriately priced or overvalued. Issuers of value stocks may have experienced adverse business developments or may be subject to special risks that have caused the stock to be out of favor. If the Fund’s assessment of market conditions or a company’s value is inaccurate, the Fund could suffer losses or produce poor performance relative to other funds. Historically, growth stocks have performed best during later stages of economic expansion and value stocks have performed best during periods of economic recovery. Therefore, both styles may over time go in and out of favor with the markets. At times when a style is out of favor, that portion of the portfolio may lag the other portion of the portfolio, which may cause the Fund to underperform the market in general, its benchmark and other mutual funds. Growth and value stocks have historically produced similar long-term results, though each category has periods when it outperforms the other.
Credit Risk: This is the risk that the issuer, the guarantor or the insurer of a fixed income security, or the counterparty to a contract, may be unable or unwilling to make timely principal and interest payments, or to otherwise honor its obligations. Additionally, fixed
PGIM Balanced Fund 113
Notes to Financial Statements (continued)
income securities could lose value due to a loss of confidence in the ability of the issuer, guarantor, insurer or counterparty to pay back debt. The lower the credit quality of a bond, the more sensitive it is to credit risk.
Debt Obligations Risk: Debt obligations are fixed income investments that are subject to credit risk, market risk and interest rate risk. The Fund’s holdings, share price, yield and total return may also fluctuate in response to bond market movements. The value of bonds may decline for issuer-related reasons, including management performance, financial leverage and reduced demand for the issuer’s goods and services. Certain types of fixed income obligations also may be subject to “call and redemption risk,” which is the risk that the issuer may call a bond held by the Fund for redemption before it matures and the Fund may not be able to reinvest at the same rate of interest and therefore would earn less income.
Derivatives Risk: Derivatives involve special risks and costs and may result in losses to the Fund. The successful use of derivatives requires sophisticated management, and, to the extent that derivatives are used, the Fund will depend on the subadviser’s ability to analyze and manage derivatives transactions. The prices of derivatives may move in unexpected ways, especially in abnormal market conditions. Some derivatives are “leveraged” or may create economic leverage for the Fund. and therefore may magnify or otherwise increase investment losses to the Fund. The Fund’s use of derivatives may also increase the amount of taxes payable by shareholders.
Other risks arise from the potential inability to terminate or sell derivatives positions. A liquid secondary market may not always exist for the Fund’s derivatives positions. In fact, many over-the-counter derivative instruments will not have liquidity beyond the counterparty to the instrument. Over-the-counter derivative instruments also involve the risk that the other party will not meet its obligations to the Fund. The use of derivatives also exposes the Fund to operational issues, such as documentation and settlement issues, systems failures, inadequate control and human error.
Derivatives may also involve legal risks, such as insufficient documentation, the lack of capacity or authority of a counterparty to execute or settle a transaction, and the legality and enforceability of derivatives contracts. The U.S. Government and foreign governments have adopted (and may adopt further) regulations governing derivatives markets, including mandatory clearing of certain derivatives, margin and reporting requirements and risk exposure limitations. Regulation of derivatives may make derivatives more costly, limit their availability or utility to the Fund, or otherwise adversely affect their performance or disrupt markets.
114
Economic and Market Events Risk: Events in the U.S. and global financial markets, including actions taken by the U.S. Federal Reserve or foreign central banks to stimulate or stabilize economic growth or the functioning of the securities markets, or otherwise reduce inflation, may at times result in unusually high market volatility, which could negatively impact performance. Governmental efforts to curb inflation often have negative effects on the level of economic activity. Relatively reduced liquidity in credit and fixed income markets could adversely affect issuers worldwide.
Equity and Equity-Related Securities Risk: Equity and equity-related securities may be subject to changes in value, and their values may be more volatile than those of other asset classes. In addition to an individual security losing value, the value of the equity markets or a sector in which the Fund invests could go down. Different parts of a market can react differently to adverse issuer, market, regulatory, political and economic developments.
Foreign Securities Risk: Investments in securities of non-U.S. issuers (including those denominated in U.S. dollars) may involve more risk than investing in securities of U.S. issuers. Foreign political, economic and legal systems, especially those in developing and emerging market countries, may be less stable and more volatile than in the United States. Foreign legal systems generally have fewer regulatory requirements than the U.S. legal system, particularly those of emerging markets. In general, less information is publicly available with respect to non-U.S. companies than U.S. companies. Non-U.S. companies generally are not subject to the same accounting, auditing, and financial reporting standards as are U.S. companies. Additionally, the changing value of foreign currencies and changes in exchange rates could also affect the value of the assets the Fund holds and the Fund’s performance. Certain foreign countries may impose restrictions on the ability of issuers of foreign securities to make payment of principal and interest or dividends to investors located outside the country, due to blockage of foreign currency exchanges or otherwise. Investments in emerging markets are subject to greater volatility and price declines.
In addition, the Fund’s investments in non-U.S. securities may be subject to the risks of nationalization or expropriation of assets, imposition of currency exchange controls or restrictions on the repatriation of non-U.S. currency, confiscatory taxation and adverse diplomatic developments. Special U.S. tax considerations may apply.
Increase in Expenses Risk: Your actual cost of investing in the Fund may be higher than the expenses shown in the expense table in the Fund’s prospectus for a variety of reasons. For example, expense ratios may be higher than those shown if average net assets decrease. Net assets are more likely to decrease and Fund expense ratios are more likely to increase when markets are volatile. Active and frequent trading of Fund securities can increase expenses.
Interest Rate Risk: The value of your investment may go down when interest rates rise. A rise in rates tends to have a greater impact on the prices of longer term or duration debt securities. Similarly, a rise in interest rates may also have a greater negative impact on the value of equity securities whose issuers expect earnings further out in the future. For
PGIM Balanced Fund 115
Notes to Financial Statements (continued)
example, a fixed income security with a duration of three years is expected to decrease in value by approximately 3% if interest rates increase by 1%. This is referred to as “duration risk.” When interest rates fall, the issuers of debt obligations may prepay principal more quickly than expected, and the Fund may be required to reinvest the proceeds at a lower interest rate. This is referred to as “prepayment risk.” For premium bonds (bonds acquired at prices that exceed their par or principal value) purchased by the Fund, prepayment risk may be enhanced. When interest rates rise, debt obligations may be repaid more slowly than expected, and the value of the Fund’s holdings may fall sharply. This is referred to as “extension risk.” The Fund may lose money if short-term or long-term interest rates rise sharply or in a manner not anticipated by the subadviser.
Large Shareholder and Large Scale Redemption Risk: Certain individuals, accounts, funds (including funds affiliated with the Manager) or institutions, including the Manager and its affiliates, may from time to time own or control a substantial amount of the Fund’s shares. There is no requirement that these entities maintain their investment in the Fund. There is a risk that such large shareholders or that the Fund’s shareholders generally may redeem all or a substantial portion of their investments in the Fund in a short period of time, which could have a significant negative impact on the Fund’s NAV, liquidity, and brokerage costs. Large redemptions could also result in tax consequences to shareholders and impact the Fund’s ability to implement its investment strategy. The Fund’s ability to pursue its investment objective after one or more large scale redemptions may be impaired and, as a result, the Fund may invest a larger portion of its assets in cash or cash equivalents.
Management Risk: Actively managed mutual funds are subject to management risk. The subadviser will apply investment techniques and risk analyses in making investment decisions for the Fund, but there can be no guarantee that these techniques will produce the desired results. Additionally, the investments selected by the subadviser may underperform the markets in general, the Fund’s benchmark and other mutual funds with similar investment objectives.
Market Disruption and Geopolitical Risks: Market disruption can be caused by economic, financial or political events and factors, including but not limited to, international wars or conflicts (including Russia’s military invasion of Ukraine and the Israel-Hamas war), geopolitical developments (including trading and tariff arrangements, sanctions and cybersecurity attacks), instability in regions such as Asia, Eastern Europe and the Middle East, terrorism, natural disasters and public health epidemics (including the outbreak of COVID-19 globally).
The extent and duration of such events and resulting market disruptions cannot be predicted, but could be substantial and could magnify the impact of other risks to the Fund. These and other similar events could adversely affect the U.S. and foreign financial markets
116
and lead to increased market volatility, reduced liquidity in the securities markets, significant negative impacts on issuers and the markets for certain securities and commodities and/or government intervention. They may also cause short- or long-term economic uncertainties in the United States and worldwide. As a result, whether or not the Fund invests in securities of issuers located in or with significant exposure to the countries directly affected, the value and liquidity of the Fund’s investments may be negatively impacted. Further, due to closures of certain markets and restrictions on trading certain securities, the value of certain securities held by the Fund could be significantly impacted, which could lead to such securities being valued at zero.
Market Risk: Securities markets may be volatile and the market prices of the Fund’s securities may decline. Securities fluctuate in price based on changes in an issuer’s financial condition and overall market and economic conditions. If the market prices of the securities owned by the Fund fall, the value of your investment in the Fund will decline.
Model Design Risk: The subadviser uses certain quantitative models to help guide its investment decisions. The design of the underlying models may be flawed or incomplete. The investment models the subadviser uses are based on historical and theoretical underpinnings that it believes are sound. There can be no guarantee, however, that these underpinnings will correlate with security price behavior in the manner assumed by the subadviser’s models. Additionally, the quantitative techniques that underlie the subadviser’s portfolio construction processes may fail to fully anticipate important risks.
Model Implementation Risk: While the subadviser strives to mitigate the likelihood of material implementation errors, it is impossible to completely eliminate the risk of error in the implementation of the computer models that guide the subadviser’s quantitative investment processes. Additionally, it may be difficult to implement model recommendations in volatile and rapidly changing market conditions.
Money Market Instruments Risk: The value of money market instruments may be affected by changing interest rates and by changes in the credit ratings of those instruments. If a significant amount of the Fund’s assets are invested in money market instruments, it will be more difficult for the Fund to achieve its investment objective.
Mortgage-Backed and Asset-Backed Securities Risk: Mortgage-backed and asset-backed securities tend to increase in value less than other debt securities when interest rates decline, but are subject to similar risk of decline in market value during periods of rising interest rates. The values of mortgage-backed and asset-backed securities become more volatile as interest rates rise. In a period of declining interest rates, the Fund may be required to reinvest more frequent prepayments on mortgage-backed and asset-backed securities in lower-yielding investments.
Portfolio Turnover Risk: The length of time the Fund has held a particular security is not generally a consideration in investment decisions. Under certain market conditions, the Fund’s turnover rate may be higher than that of other mutual funds. Portfolio turnover
PGIM Balanced Fund 117
Notes to Financial Statements (continued)
generally involves some expense to the Fund, including brokerage commissions or dealer mark-ups and other transaction costs on the sale of securities and reinvestment in other securities. These transactions may result in realization of taxable capital gains. The trading costs and tax effects associated with portfolio turnover may adversely affect the Fund’s investment performance.
Sector Exposure Risk: At times, the Fund may have a significant portion of its assets invested in the same economic sector, such as the financials and information technology sectors. Issuers in the same economic sector may be similarly affected by economic or market events, making the Fund more vulnerable to unfavorable developments in that economic sector than funds that invest more broadly.
Small Company Risk: Small company stocks present above-average risks in comparison to larger companies. Small companies usually offer a smaller range of products and services than larger companies. Smaller companies may also have limited financial resources and may lack management expertise. As a result, stocks issued by smaller companies may be comparatively less liquid and fluctuate in value more than the stocks of larger, more established companies. In addition, it is more difficult to get information on smaller companies, which tend to be less well known, have shorter operating histories, do not have significant ownership by large investors and are followed by relatively few securities analysts.
U.S. Government and Agency Securities Risk: U.S. Treasury obligations are backed by the “full faith and credit” of the U.S. Government. Securities issued or guaranteed by federal agencies or authorities and U.S. Government-sponsored instrumentalities or enterprises may or may not be backed by the full faith and credit of the U.S. Government. For example, securities issued by the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association and the Federal Home Loan Banks are neither insured nor guaranteed by the U.S. Government. These securities may be supported by the ability to borrow from the U.S. Treasury or only by the credit of the issuing agency, authority, instrumentality or enterprise and, as a result, are subject to greater credit risk than securities issued or guaranteed by the U.S. Treasury. Further, the U.S. Government and its agencies, authorities, instrumentalities and enterprises do not guarantee the market value of their securities; consequently, the value of such securities will fluctuate. This may be the case especially when there is any controversy or ongoing uncertainty regarding the status of negotiations in the U.S. Congress to increase the statutory debt ceiling. Such controversy or uncertainty could, among other things, result in the credit quality rating of the U.S. Government being downgraded and reduced prices of U.S. Treasury securities. If the U.S. Congress is unable to negotiate an adjustment to the statutory debt ceiling, there is also the risk that the U.S. Government may default on payments on certain U.S. Government securities, including those held by the Fund, which could have a negative impact on the
118
Fund. An increase in demand for U.S. Government securities resulting from an increase in demand for government money market funds may lead to lower yields on such securities.
PGIM Balanced Fund 119
Report of Independent Registered Public Accounting Firm
To the Board of Directors of The Prudential Investment Portfolios, Inc. and Shareholders of PGIM Balanced Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of PGIM Balanced Fund (one of the funds constituting The Prudential Investment Portfolios, Inc., referred to hereafter as the “Fund”) as of September 30, 2024, the related statement of operations for the year ended September 30, 2024, the statements of changes in net assets for each of the two years in the period ended September 30, 2024, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2024 (collectively ref erred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of September 30, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended September 30, 202 4 and the financial highlights for each of the five years in the period ended September 30, 2024 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of September 30, 2024 by correspondence with the custodian, transfer agent, agent banks and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
New York, New York
November 21, 2024
We have served as the auditor of one or more investment companies in the PGIM Retail Funds complex since 2020.
120
Other Information
Form N-CSR Item 8 - Changes in and Disagreements with Accountants for Open-End Management Investment Companies - None.
Form N-CSR Item 9 - Proxy Disclosures for Open-End Management Investment Companies - None.
Form N-CSR Item 10 - Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies – Included as part of the financial statements filed under Item 7 of this Form.
Form N-CSR Item 11 - Statement Regarding Basis for Approval of Investment Advisory Contract.
Approval of Advisory Agreements
PGIM Balanced Fund
The Fund’s Board of Directors
The Board of Directors (the “Board”) of PGIM Balanced Fund (the “Fund”)1 consists of ten individuals, eight of whom are not “interested persons” of the Fund, as defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independent Directors”). The Board is responsible for the oversight of the Fund and its operations, and performs the various duties imposed on the directors of investment companies by the 1940 Act. The Independent Directors have retained independent legal counsel to assist them in connection with their duties. The Chair of the Board is an Independent Director. The Board has established five standing committees: the Audit Committee, the Nominating and Governance Committee, the Compliance Committee and two Investment Committees. Each committee is chaired by, and composed of, Independent Directors.
Annual Approval of the Fund’s Advisory Agreements
As required under the 1940 Act, the Board determines annually whether to renew the Fund’s management agreement with PGIM Investments LLC (“PGIM Investments”) and the Fund’s subadvisory agreements with PGIM Quantitative Solutions LLC (“PGIM Quantitative Solutions”), PGIM, Limited (“PGIML”) and PGIM, Inc. (“PGIM”) on behalf of its PGIM Fixed Income unit (“PGIM Fixed Income”). In considering the renewal of the agreements, the Board, including all of the Independent Directors, met on May 28 and June 4-6, 2024 (the “Board Meeting”) and approved the renewal of the agreements through July 31, 2025, after concluding that the renewal of the agreements was in the best interests of the Fund and its shareholders.
In advance of the meetings, the Board requested and received materials relating to the agreements, and had the opportunity to ask questions and request further information in connection with its consideration. Among other things, the Board considered comparative fee information from PGIM Investments, PGIM Quantitative Solutions, PGIML and PGIM Fixed Income. Also, the Board considered comparisons with other mutual funds in relevant peer universes and peer groups, as is further discussed below.
In approving the agreements, the Board, including the Independent Directors advised by independent legal counsel, considered the factors it deemed relevant, including the nature, quality and extent of services provided by PGIM Investments and the subadvisers, the performance of the Fund, the profitability of PGIM Investments and its affiliates, expenses and fees, and the potential for economies of scale that may be shared with the Fund and its
| 1 | PGIM Balanced Fund is a series of The Prudential Investment Portfolios, Inc. |
PGIM Balanced Fund
Approval of Advisory Agreements (continued)
shareholders as the Fund’s assets grow. In their deliberations, the Directors did not identify any single factor which alone was responsible for the Board’s decision to approve an agreement with respect to the Fund. In connection with its deliberations, the Board considered information provided by PGIM Investments throughout the year at regular and special Board meetings, presentations from portfolio managers and other information, as well as information furnished at or in advance of the Board Meeting.
The Directors determined that the overall arrangements between the Fund and PGIM Investments, which serves as the Fund’s investment manager pursuant to a management agreement, and between PGIM Investments and each of PGIM Quantitative Solutions, PGIML and PGIM Fixed Income, which serve as the Fund’s subadvisers pursuant to the terms of subadvisory agreements with PGIM Investments, are in the best interests of the Fund and its shareholders in light of the services performed, fees charged and such other matters as the Directors considered relevant in the exercise of their business judgment. The Board considered the approval of the agreements for the Fund as part of its consideration of agreements for multiple funds, but its approvals were made on a fund-by-fund basis.
The material factors and conclusions that formed the basis for the Directors’ reaching their determinations to approve the continuance of the agreements are separately discussed below.
Nature, Quality and Extent of Services
The Board received and considered information regarding the nature, quality and extent of services provided to the Fund by PGIM Investments, PGIM Quantitative Solutions, PGIML and PGIM Fixed Income. The Board noted that PGIM Quantitative Solutions, PGIML and PGIM Fixed Income are affiliated with PGIM Investments. The Board considered the services provided by PGIM Investments, including but not limited to the oversight of the subadvisers for the Fund, as well as the provision of accounting oversight, fund recordkeeping, compliance and other services to the Fund, such as PGIM Investments’ role as administrator for the Fund’s liquidity risk management program and as valuation designee. With respect to PGIM Investments’ oversight of the subadvisers, the Board noted that PGIM Investments’ Strategic Investment Research Group (“SIRG”), which is a business unit of PGIM Investments, is responsible for monitoring and reporting to PGIM Investments senior management on the performance and operations of the subadvisers. The Board also considered that PGIM Investments pays the salaries of all of the officers and interested Directors of the Fund who are part of Fund management. The Board also considered the investment subadvisory services provided by PGIM Quantitative Solutions, PGIML and PGIM Fixed Income, including investment research and security selection, as well as adherence to the Fund’s investment restrictions and compliance with applicable Fund policies and procedures. The Board considered PGIM Investments’ evaluation of the subadvisers, as well as PGIM Investments’ recommendation, based on its review of the subadvisers, to renew the subadvisory agreements.
Visit our website at pgim.com/investments
The Board considered the qualifications, backgrounds and responsibilities of PGIM Investments’ senior management responsible for the oversight of the Fund, PGIM Quantitative Solutions, PGIML and PGIM Fixed Income, and also considered the qualifications, backgrounds and responsibilities of the PGIM Quantitative Solutions, PGIML and PGIM Fixed Income portfolio managers who are responsible for the day-to-day management of the Fund’s portfolio. The Board was provided with information pertaining to PGIM Investments’, PGIM Quantitative Solutions’, PGIML’s and PGIM Fixed Income’s organizational structures, senior management, investment operations, and other relevant information pertaining to PGIM Investments, PGIM Quantitative Solutions, PGIML and PGIM Fixed Income. The Board also noted that it received favorable compliance reports from the Fund’s Chief Compliance Officer (“CCO”) as to each of PGIM Investments, PGIM Quantitative Solutions, PGIML and PGIM Fixed Income.
The Board concluded that it was satisfied with the nature, extent and quality of the investment management services provided by PGIM Investments and the subadvisory services provided to the Fund by each of PGIM Quantitative Solutions, PGIML and PGIM Fixed Income, and that there was a reasonable basis on which to conclude that the Fund benefits from the services provided by PGIM Investments, PGIM Quantitative Solutions, PGIML and PGIM Fixed Income under the management and subadvisory agreements.
Costs of Services and Profits Realized by PGIM Investments
The Board was provided with information on the profitability of PGIM Investments and its affiliates in serving as the Fund’s investment manager. The Board discussed with PGIM Investments the methodology utilized in assembling the information regarding profitability and considered its reasonableness. The Board recognized that it is difficult to make comparisons of profitability from fund management contracts because comparative information is not generally publicly available and is affected by numerous factors, including the structure of the particular adviser, the types of funds it manages, its business mix, numerous assumptions regarding allocations of direct and indirect costs, and the adviser’s capital structure and cost of capital. Taking these factors into account, the Board concluded that the profitability of PGIM Investments and its affiliates in relation to the services rendered was not unreasonable.
Economies of Scale
The Board received and discussed information concerning economies of scale that PGIM Investments may realize as the Fund’s assets grow beyond current levels. The Board noted that the management fee schedule for the Fund includes breakpoints, which have the effect of decreasing the fee rate as assets increase. During the course of time, the Board has considered information regarding the launch date of the Fund, the management fees of the Fund compared to those of similarly managed funds and PGIM Investments’
PGIM Balanced Fund
Approval of Advisory Agreements (continued)
investment in the Fund over time. The Board noted that economies of scale can be shared with the Fund in other ways, including low management fees from inception, additional technological and personnel investments to enhance shareholder services, and maintaining existing expense structures in the face of a rising cost environment. The Board also considered PGIM Investments’ assertion that it continually evaluates the management fee schedule of the Fund and the potential to share economies of scale through breakpoints or fee waivers as asset levels increase.
The Board recognized the inherent limitations of any analysis of economies of scale, stemming largely from the Board’s understanding that most of PGIM Investments’ costs are not specific to individual funds, but rather are incurred across a variety of products and services.
Other Benefits to PGIM Investments, PGIM Quantitative Solutions, PGIML and PGIM Fixed Income
The Board considered potential ancillary benefits that might be received by PGIM Investments, PGIM Quantitative Solutions, PGIML PGIM Fixed Income and their affiliates as a result of their relationship with the Fund. The Board concluded that potential benefits to be derived by PGIM Investments included transfer agency fees received by the Fund’s transfer agent (which is affiliated with PGIM Investments), and benefits to its reputation as well as other intangible benefits resulting from PGIM Investments’ association with the Fund. The Board concluded that the potential benefits to be derived by PGIM Quantitative Solutions, PGIML and PGIM Fixed Income included their ability to use soft dollar credits, as well as the potential benefits consistent with those generally resulting from an increase in assets under management, specifically, potential access to additional research resources and benefits to their reputations. The Board concluded that the benefits derived by PGIM Investments, PGIM Quantitative Solutions, PGIML and PGIM Fixed Income were consistent with the types of benefits generally derived by investment managers and subadvisers to mutual funds.
Performance of the Fund / Fees and Expenses
The Board considered certain additional factors and made related conclusions relating to the historical performance of the Fund for the one-, three-, five- and ten-year periods ended December 31, 2023.
The Board also considered the Fund’s actual management fee, as well as the Fund’s net total expense ratio, for the fiscal year ended September 30, 2023. The Board considered the management fee for the Fund as compared to the management fee charged by PGIM Investments to other funds and the fee charged by other advisers to comparable mutual funds in a peer group. The actual management fee represents the fee rate actually paid by Fund shareholders and includes any fee waivers or reimbursements. The net total expense ratio for the Fund represents the actual expense ratio incurred by Fund shareholders.
Visit our website at pgim.com/investments
The mutual funds included in the peer universe, which was used to consider performance and the peer group, which was used to consider expenses and fees, were objectively determined by Broadridge, an independent provider of mutual fund data. In certain circumstances, PGIM Investments also provided supplemental peer universe or peer group information, for reasons addressed with the Board. The comparisons placed the Fund in various quartiles over various periods, with the first quartile being the best 25% of the mutual funds (for performance, the best performing mutual funds and, for expenses, the lowest cost mutual funds).
The section below summarizes key factors considered by the Board and the Board’s conclusions regarding the Fund’s performance, fees and overall expenses. The table sets forth net performance comparisons (which reflect the impact on performance of fund expenses, or any subsidies, expense caps or waivers that may be applicable) with the peer universe, actual management fees with the peer group (which reflect the impact of any subsidies or fee waivers), and net total expenses with the peer group, each of which were key factors considered by the Board.
| | | | | | | | |
| Net Performance | | 1 Year | | 3 Years | | 5 Years | | 10 Years |
| | | 1st Quartile | | 1st Quartile | | 1st Quartile | | 1st Quartile |
| Actual Management Fees: 2nd Quartile |
| Net Total Expenses: 2nd Quartile |
| · | The Board noted that the Fund outperformed its benchmark index over the one- and three-year periods and underperformed its benchmark index over the remaining periods. |
| · | The Board and PGIM Investments agreed to retain the Fund’s existing contractual expense cap, which (exclusive of certain fees and expenses) caps total annual operating expenses at 1.00% for Class A shares, 0.65% for Class R6 shares, and 1.47% for Class R shares through January 31, 2025. |
| · | In addition, PGIM Investments will waive management fees or shared operating expenses on any share class to the same extent that it waives such expenses on any other share class, and has agreed that total annual fund operating expenses for Class R6 shares will not exceed total annual fund operating expenses for Class Z shares. |
| · | The Board concluded that, in light of the above, it would be in the best interests of the Fund and its shareholders to renew the agreements. |
| · | The Board concluded that the management fees (including subadvisory fees) and total expenses were reasonable in light of the services provided. |
* * *
After full consideration of these factors, the Board concluded that approval of the agreements was in the best interests of the Fund and its shareholders.
PGIM Balanced Fund
PRUDENTIAL INVESTMENT PORTFOLIOS, INC.
PGIM Jennison Focused Value Fund
PGIM Jennison Growth Fund
FINANCIAL STATEMENTS AND OTHER INFORMATION
SEPTEMBER 30, 2024
| | | | |
Table of Contents | | Financial Statements and Other Information | | September 30, 2024 |
Form N-CSR Item 7 - Financial Statements and Financial Highlights for Open-End Management Investment Companies.
Glossary
The following abbreviations are used in the Funds’ descriptions:
ADR—American Depositary Receipt
REITs—Real Estate Investment Trust
SOFR—Secured Overnight Financing Rate
1
PGIM Jennison Focused Value Fund
Schedule of Investments
as of September 30, 2024
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
LONG-TERM INVESTMENTS 97.3% | | | | | | | | |
| | |
COMMON STOCKS | | | | | | | | |
| | |
Aerospace & Defense 4.5% | | | | | | | | |
Airbus SE (France) | | | 29,482 | | | $ | 4,314,878 | |
General Electric Co. | | | 33,304 | | | | 6,280,468 | |
| | | | | | | | |
| | |
| | | | | | | 10,595,346 | |
| | |
Automobiles 2.4% | | | | | | | | |
General Motors Co. | | | 123,504 | | | | 5,537,919 | |
| | |
Banks 13.3% | | | | | | | | |
Bank of America Corp. | | | 170,294 | | | | 6,757,266 | |
JPMorgan Chase & Co. | | | 49,900 | | | | 10,521,914 | |
PNC Financial Services Group, Inc. (The) | | | 37,796 | | | | 6,986,591 | |
Truist Financial Corp. | | | 155,230 | | | | 6,639,187 | |
| | | | | | | | |
| | |
| | | | | | | 30,904,958 | |
| | |
Biotechnology 4.2% | | | | | | | | |
AbbVie, Inc. | | | 49,690 | | | | 9,812,781 | |
| | |
Building Products 2.6% | | | | | | | | |
Johnson Controls International PLC | | | 78,746 | | | | 6,111,477 | |
| | |
Capital Markets 5.6% | | | | | | | | |
Blackstone, Inc. | | | 34,965 | | | | 5,354,190 | |
Goldman Sachs Group, Inc. (The) | | | 15,379 | | | | 7,614,297 | |
| | | | | | | | |
| | |
| | | | | | | 12,968,487 | |
| | |
Chemicals 3.1% | | | | | | | | |
Linde PLC | | | 15,228 | | | | 7,261,624 | |
| | |
Consumer Staples Distribution & Retail 6.1% | | | | | | | | |
Walmart, Inc. | | | 175,479 | | | | 14,169,929 | |
| | |
Electric Utilities 3.1% | | | | | | | | |
PG&E Corp. | | | 373,180 | | | | 7,377,769 | |
| | |
Ground Transportation 3.2% | | | | | | | | |
Union Pacific Corp. | | | 30,037 | | | | 7,403,520 | |
See Notes to Financial Statements.
2
PGIM Jennison Focused Value Fund
Schedule of Investments (continued)
as of September 30, 2024
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Health Care Providers & Services 3.2% | | | | | | | | |
Cigna Group (The) | | | 21,731 | | | $ | 7,528,488 | |
| | |
Household Durables 1.7% | | | | | | | | |
Toll Brothers, Inc. | | | 25,254 | | | | 3,901,490 | |
| | |
Insurance 6.6% | | | | | | | | |
Chubb Ltd. | | | 25,402 | | | | 7,325,683 | |
MetLife, Inc. | | | 97,087 | | | | 8,007,735 | |
| | | | | | | | |
| | |
| | | | | | | 15,333,418 | |
| | |
Interactive Media & Services 2.5% | | | | | | | | |
Meta Platforms, Inc. (Class A Stock) | | | 10,199 | | | | 5,838,316 | |
| | |
Multi-Utilities 3.8% | | | | | | | | |
NiSource, Inc. | | | 256,382 | | | | 8,883,636 | |
| | |
Oil, Gas & Consumable Fuels 7.0% | | | | | | | | |
Exxon Mobil Corp. | | | 81,841 | | | | 9,593,402 | |
Shell PLC, ADR | | | 101,695 | | | | 6,706,785 | |
| | | | | | | | |
| | |
| | | | | | | 16,300,187 | |
| | |
Passenger Airlines 2.4% | | | | | | | | |
Delta Air Lines, Inc. | | | 108,865 | | | | 5,529,253 | |
| | |
Pharmaceuticals 6.7% | | | | | | | | |
AstraZeneca PLC (United Kingdom), ADR | | | 81,290 | | | | 6,333,304 | |
Bristol-Myers Squibb Co. | | | 80,838 | | | | 4,182,558 | |
Eli Lilly & Co. | | | 5,657 | | | | 5,011,763 | |
| | | | | | | | |
| | |
| | | | | | | 15,527,625 | |
| | |
Residential REITs 2.2% | | | | | | | | |
Camden Property Trust | | | 42,156 | | | | 5,207,531 | |
| | |
Semiconductors & Semiconductor Equipment 5.5% | | | | | | | | |
Advanced Micro Devices, Inc.* | | | 25,733 | | | | 4,222,271 | |
Broadcom, Inc. | | | 28,504 | | | | 4,916,940 | |
Lam Research Corp. | | | 4,464 | | | | 3,642,981 | |
| | | | | | | | |
| | |
| | | | | | | 12,782,192 | |
See Notes to Financial Statements.
PGIM Jennison Focused Value Fund 3
PGIM Jennison Focused Value Fund
Schedule of Investments (continued)
as of September 30, 2024
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Software 5.7% | | | | | | | | |
Microsoft Corp. | | | 11,392 | | | $ | 4,901,978 | |
Oracle Corp. | | | 24,827 | | | | 4,230,521 | |
Salesforce, Inc. | | | 15,023 | | | | 4,111,945 | |
| | | | | | | | |
| | |
| | | | | | | 13,244,444 | |
| | |
Technology Hardware, Storage & Peripherals 1.9% | | | | | | | | |
Dell Technologies, Inc. (Class C Stock) | | | 37,207 | | | | 4,410,518 | |
| | | | | | | | |
| | |
TOTAL LONG-TERM INVESTMENTS
(cost $145,153,393) | | | | | | | 226,630,908 | |
| | | | | | | | |
| | |
SHORT-TERM INVESTMENT 2.7% | | | | | | | | |
| | |
AFFILIATED MUTUAL FUND | | | | | | | | |
PGIM Core Government Money Market Fund (7-day effective yield 5.140%)
(cost $6,240,223)(wb) | | | 6,240,223 | | | | 6,240,223 | |
| | | | | | | | |
| | |
TOTAL INVESTMENTS 100.0%
(cost $151,393,616) | | | | | | | 232,871,131 | |
| | |
Liabilities in excess of other assets (0.0)% | | | | | | | (51,894 | ) |
| | | | | | | | |
| | |
NET ASSETS 100.0% | | | | | | $ | 232,819,237 | |
| | | | | | | | |
See the Glossary for a list of the abbreviation(s) used in the annual report.
| * | Non-income producing security. |
| (wb) | Represents an investment in a Fund affiliated with the Manager. |
See Notes to Financial Statements.
4
PGIM Jennison Focused Value Fund
Schedule of Investments (continued)
as of September 30, 2024
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 September 30, 2024 in valuing such portfolio securities:
| | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | |
Investments in Securities | | | | | | | | | | | | |
Assets | | | | | | | | | | | | |
Long-Term Investments | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | |
Aerospace & Defense | | $ | 6,280,468 | | | $ | 4,314,878 | | | | $— | |
Automobiles | | | 5,537,919 | | | | — | | | | — | |
Banks | | | 30,904,958 | | | | — | | | | — | |
Biotechnology | | | 9,812,781 | | | | — | | | | — | |
Building Products | | | 6,111,477 | | | | — | | | | — | |
Capital Markets | | | 12,968,487 | | | | — | | | | — | |
Chemicals | | | 7,261,624 | | | | — | | | | — | |
Consumer Staples Distribution & Retail | | | 14,169,929 | | | | — | | | | — | |
Electric Utilities | | | 7,377,769 | | | | — | | | | — | |
Ground Transportation | | | 7,403,520 | | | | — | | | | — | |
Health Care Providers & Services | | | 7,528,488 | | | | — | | | | — | |
Household Durables | | | 3,901,490 | | | | — | | | | — | |
Insurance | | | 15,333,418 | | | | — | | | | — | |
Interactive Media & Services | | | 5,838,316 | | | | — | | | | — | |
Multi-Utilities | | | 8,883,636 | | | | — | | | | — | |
Oil, Gas & Consumable Fuels | | | 16,300,187 | | | | — | | | | — | |
Passenger Airlines | | | 5,529,253 | | | | — | | | | — | |
Pharmaceuticals | | | 15,527,625 | | | | — | | | | — | |
Residential REITs | | | 5,207,531 | | | | — | | | | — | |
Semiconductors & Semiconductor Equipment | | | 12,782,192 | | | | — | | | | — | |
Software | | | 13,244,444 | | | | — | | | | — | |
Technology Hardware, Storage & Peripherals | | | 4,410,518 | | | | — | | | | — | |
Short-Term Investment | | | | | | | | | | | | |
Affiliated Mutual Fund | | | 6,240,223 | | | | — | | | | — | |
| | | | | | | | | | | | |
Total | | $ | 228,556,253 | | | $ | 4,314,878 | | | | $— | |
| | | | | | | | | | | | |
See Notes to Financial Statements.
PGIM Jennison Focused Value Fund 5
PGIM Jennison Focused Value Fund
Schedule of Investments (continued)
as of September 30, 2024
Industry Classification:
The industry classification of investments and liabilities in excess of other assets shown as a percentage of net assets as of September 30, 2024 were as follows:
| | | | |
Banks | | | 13.3 | % |
Oil, Gas & Consumable Fuels | | | 7.0 | |
Pharmaceuticals | | | 6.7 | |
Insurance | | | 6.6 | |
Consumer Staples Distribution & Retail | | | 6.1 | |
Software | | | 5.7 | |
Capital Markets | | | 5.6 | |
Semiconductors & Semiconductor Equipment | | | 5.5 | |
Aerospace & Defense | | | 4.5 | |
Biotechnology | | | 4.2 | |
Multi-Utilities | | | 3.8 | |
Health Care Providers & Services | | | 3.2 | |
Ground Transportation | | | 3.2 | |
Electric Utilities | | | 3.1 | |
Chemicals | | | 3.1 | |
| | | | |
Affiliated Mutual Fund | | | 2.7 | % |
Building Products | | | 2.6 | |
Interactive Media & Services | | | 2.5 | |
Automobiles | | | 2.4 | |
Passenger Airlines | | | 2.4 | |
Residential REITs | | | 2.2 | |
Technology Hardware, Storage & Peripherals | | | 1.9 | |
Household Durables | | | 1.7 | |
| | | | |
| | | 100.0 | |
Liabilities in excess of other assets | | | (0.0 | )* |
| | | | |
| |
| | | 100.0 | % |
| | | | |
See Notes to Financial Statements.
6
PGIM Jennison Focused Value Fund
Statement of Assets & Liabilities
as of September 30, 2024
| | | | |
| |
Assets | | | | |
| |
Investments at value: | | | | |
Unaffiliated investments (cost $145,153,393) | | $ | 226,630,908 | |
Affiliated investments (cost $6,240,223) | | | 6,240,223 | |
Receivable for Fund shares sold | | | 279,326 | |
Dividends receivable | | | 124,103 | |
Tax reclaim receivable | | | 9,707 | |
Prepaid expenses | | | 2,520 | |
| | | | |
Total Assets | | | 233,286,787 | |
| | | | |
| |
Liabilities | | | | |
Payable for Fund shares purchased | | | 237,168 | |
Management fee payable | | | 90,856 | |
Distribution fee payable | | | 47,126 | |
Audit fee payable | | | 26,157 | |
Transfer agent’s fees and expenses payable | | | 24,211 | |
Accrued expenses and other liabilities | | | 14,572 | |
Shareholders’ reports fee payable | | | 13,739 | |
Affiliated transfer agent fee payable | | | 13,721 | |
| | | | |
Total Liabilities | | | 467,550 | |
| | | | |
| |
Net Assets | | $ | 232,819,237 | |
| | | | |
| |
| | | | | |
Net assets were comprised of: | | | | |
Common stock, at par | | $ | 10,745 | |
Paid-in capital in excess of par | | | 132,676,313 | |
Total distributable earnings (loss) | | | 100,132,179 | |
| | | | |
| |
Net assets, September 30, 2024 | | $ | 232,819,237 | |
| | | | |
See Notes to Financial Statements.
PGIM Jennison Focused Value Fund 7
PGIM Jennison Focused Value Fund
Statement of Assets & Liabilities (continued)
as of September 30, 2024
| | | | |
| |
Class A | | | | |
| |
Net asset value and redemption price per share,
($183,531,702 ÷ 8,528,708 shares of common stock issued and outstanding) | | $ | 21.52 | |
Maximum sales charge (5.50% of offering price) | | | 1.25 | |
| | | | |
| |
Maximum offering price to public | | $ | 22.77 | |
| | | | |
| |
Class C | | | | |
| |
Net asset value, offering price and redemption price per share,
($3,168,551 ÷ 211,294 shares of common stock issued and outstanding) | | $ | 15.00 | |
| | | | |
| |
Class R | | | | |
| |
Net asset value, offering price and redemption price per share,
($241,113 ÷ 13,989 shares of common stock issued and outstanding) | | $ | 17.24 | |
| | | | |
| |
Class Z | | | | |
| |
Net asset value, offering price and redemption price per share,
($39,788,812 ÷ 1,726,225 shares of common stock issued and outstanding) | | $ | 23.05 | |
| | | | |
| |
Class R6 | | | | |
| |
Net asset value, offering price and redemption price per share,
($6,089,059 ÷ 265,069 shares of common stock issued and outstanding) | | $ | 22.97 | |
| | | | |
See Notes to Financial Statements.
8
PGIM Jennison Focused Value Fund
Statement of Operations
Year Ended September 30, 2024
| | | | |
Net Investment Income (Loss) | | | | |
| |
Income | | | | |
Unaffiliated dividend income (net of $11,496 foreign withholding tax) | | $ | 4,164,098 | |
Affiliated dividend income | | | 299,415 | |
Affiliated income from securities lending, net | | | 151 | |
| | | | |
Total income | | | 4,463,664 | |
| | | | |
| |
Expenses | | | | |
Management fee | | | 1,243,604 | |
Distribution fee(a) | | | 536,102 | |
Transfer agent’s fees and expenses (including affiliated expense of $84,618)(a) | | | 253,821 | |
Registration fees(a) | | | 73,535 | |
Custodian and accounting fees | | | 43,742 | |
Professional fees | | | 38,541 | |
Shareholders’ reports | | | 31,669 | |
Audit fee | | | 26,156 | |
Directors’ fees | | | 12,418 | |
Miscellaneous | | | 19,606 | |
| | | | |
Total expenses | | | 2,279,194 | |
Less: Fee waiver and/or expense reimbursement(a) | | | (56,256 | ) |
Distribution fee waiver(a) | | | (630 | ) |
| | | | |
Net expenses | | | 2,222,308 | |
| | | | |
Net investment income (loss) | | | 2,241,356 | |
| | | | |
Realized And Unrealized Gain (Loss) On Investment And Foreign Currency Transactions | | | | |
| |
Net realized gain (loss) on: | | | | |
Investment transactions (including affiliated of $602) | | | 18,699,668 | |
Foreign currency transactions | | | (1,728 | ) |
| | | | |
| | | 18,697,940 | |
| | | | |
| |
Net change in unrealized appreciation (depreciation) on investments | | | 41,836,039 | |
| | | | |
| |
Net gain (loss) on investment and foreign currency transactions | | | 60,533,979 | |
| | | | |
| |
Net Increase (Decrease) In Net Assets Resulting From Operations | | $ | 62,775,335 | |
| | | | |
(a) Class specific expenses and waivers were as follows:
| | | | | | | | | | | | | | | | | | | | |
| | | Class A | | | Class C | | | Class R | | | Class Z | | | Class R6 | |
Distribution fee | | | 502,872 | | | | 31,340 | | | | 1,890 | | | | — | | | | — | |
Transfer agent’s fees and expenses | | | 205,077 | | | | 6,627 | | | | 967 | | | | 40,771 | | | | 379 | |
Registration fees | | | 18,775 | | | | 15,011 | | | | 5,777 | | | | 18,221 | | | | 15,751 | |
Fee waiver and/or expense reimbursement | | | — | | | | — | | | | (5,869) | | | | (37,350) | | | | (13,037) | |
Distribution fee waiver | | | — | | | | — | | | | (630) | | | | — | | | | — | |
See Notes to Financial Statements.
PGIM Jennison Focused Value Fund 9
PGIM Jennison Focused Value Fund
Statements of Changes in Net Assets
| | | | | | | | | | |
| | |
| | | Year Ended
September 30, | | | |
| | | |
| | | 2024 | | | 2023 | | | |
Increase (Decrease) in Net Assets | | | | | | | | | | |
| | | |
Operations | | | | | | | | | | |
Net investment income (loss) | | $ | 2,241,356 | | | $ | 1,784,801 | | | |
Net realized gain (loss) on investment and foreign currency transactions | | | 18,697,940 | | | | 13,654,708 | | | |
Net change in unrealized appreciation (depreciation) on investments | | | 41,836,039 | | | | 15,512,930 | | | |
| | | | | | | | | | |
Net increase (decrease) in net assets resulting from operations | | | 62,775,335 | | | | 30,952,439 | | | |
| | | | | | | | | | |
| | | |
Dividends and Distributions | | | | | | | | | | |
Distributions from distributable earnings | | | | | | | | | | |
Class A | | | (14,291,362 | ) | | | (4,904,534 | ) | | |
Class C | | | (371,536 | ) | | | (129,521 | ) | | |
Class R | | | (26,975 | ) | | | (17,021 | ) | | |
Class Z | | | (2,163,975 | ) | | | (806,229 | ) | | |
Class R6 | | | (327,078 | ) | | | (168,416 | ) | | |
| | | | | | | | | | |
| | | (17,180,926 | ) | | | (6,025,721 | ) | | |
| | | | | | | | | | |
| | | |
Fund share transactions (Net of share conversions) | | | | | | | | | | |
Net proceeds from shares sold | | | 26,931,564 | | | | 10,720,145 | | | |
Net asset value of shares issued in reinvestment of dividends and distributions | | | 16,969,161 | | | | 5,942,215 | | | |
Cost of shares purchased | | | (37,728,041 | ) | | | (32,625,117 | ) | | |
| | | | | | | | | | |
Net increase (decrease) in net assets from Fund share transactions | | | 6,172,684 | | | | (15,962,757 | ) | | |
| | | | | | | | | | |
Total increase (decrease) | | | 51,767,093 | | | | 8,963,961 | | | |
| | | |
Net Assets: | | | | | | | | | | |
| | | |
Beginning of year | | | 181,052,144 | | | | 172,088,183 | | | |
| | | | | | | | | | |
End of year | | $ | 232,819,237 | | | $ | 181,052,144 | | | |
| | | | | | | | | | |
See Notes to Financial Statements.
10
PGIM Jennison Focused Value Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Year Ended September 30, | |
| | |
| | | | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning of Year | | | | | $17.42 | | | | $15.18 | | | | $18.37 | | | | $14.03 | | | | $15.63 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | | | 0.20 | | | | 0.16 | | | | 0.16 | | | | 0.09 | | | | 0.12 | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | | | 5.60 | | | | 2.62 | | | | (2.50 | ) | | | 4.39 | | | | (0.38 | ) |
Total from investment operations | | | | | 5.80 | | | | 2.78 | | | | (2.34 | ) | | | 4.48 | | | | (0.26 | ) |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | | | (0.17 | ) | | | (0.16 | ) | | | (0.10 | ) | | | (0.14 | ) | | | (0.15 | ) |
Distributions from net realized gains | | | | | (1.53 | ) | | | (0.38 | ) | | | (0.75 | ) | | | - | | | | (1.19 | ) |
Total dividends and distributions | | | | | (1.70 | ) | | | (0.54 | ) | | | (0.85 | ) | | | (0.14 | ) | | | (1.34 | ) |
Net asset value, end of year | | | | | $21.52 | | | | $17.42 | | | | $15.18 | | | | $18.37 | | | | $14.03 | |
Total Return(b): | | | | | 35.78 | % | | | 18.51 | % | | | (13.63 | )% | | | 32.13 | % | | | (2.50 | )% |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year (000) | | | | | $183,532 | | | | $151,116 | | | | $140,226 | | | | $179,848 | | | | $151,149 | |
Average net assets (000) | | | | | $167,624 | | | | $153,596 | | | | $173,289 | | | | $173,975 | | | | $163,554 | |
Ratios to average net assets(c): | | | | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | | | 1.12 | % | | | 1.17 | % | | | 1.13 | % | | | 1.11 | % | | | 1.15 | % |
Expenses before waivers and/or expense reimbursement | | | | | 1.12 | % | | | 1.17 | % | | | 1.13 | % | | | 1.11 | % | | | 1.15 | % |
Net investment income (loss) | | | | | 1.04 | % | | | 0.92 | % | | | 0.88 | % | | | 0.53 | % | | | 0.85 | % |
Portfolio turnover rate(d) | | | | | 42 | % | | | 37 | % | | | 31 | % | | | 32 | % | | | 128 | % |
| (a) | Calculated based on average shares outstanding during the year. |
| (b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. |
| (c) | Does not include expenses of the underlying funds in which the Fund invests. |
| (d) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Jennison Focused Value Fund 11
PGIM Jennison Focused Value Fund
Financial Highlights (continued)
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Year Ended September 30, | |
| | |
| | | | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning of Year | | | | | $12.65 | | | | $11.18 | | | | $13.78 | | | | $10.59 | | | | $12.15 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | | | (0.03 | )(b) | | | (0.02 | )(b) | | | (0.02 | )(b) | | | (0.05 | )(b) | | | (- | )(b)(c) |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | | | 3.96 | | | | 1.92 | | | | (1.83 | ) | | | 3.32 | | | | (0.29 | ) |
Total from investment operations | | | | | 3.93 | | | | 1.90 | | | | (1.85 | ) | | | 3.27 | | | | (0.29 | ) |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | | | (0.05 | ) | | | (0.05 | ) | | | (- | )(c) | | | (0.08 | ) | | | (0.08 | ) |
Distributions from net realized gains | | | | | (1.53 | ) | | | (0.38 | ) | | | (0.75 | ) | | | - | | | | (1.19 | ) |
Total dividends and distributions | | | | | (1.58 | ) | | | (0.43 | ) | | | (0.75 | ) | | | (0.08 | ) | | | (1.27 | ) |
Net asset value, end of year | | | | | $15.00 | | | | $12.65 | | | | $11.18 | | | | $13.78 | | | | $10.59 | |
Total Return(d): | | | | | 34.14 | % | | | 17.26 | % | | | (14.57 | )% | | | 31.06 | % | | | (3.41 | )% |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year (000) | | | | | $3,169 | | | | $3,110 | | | | $3,449 | | | | $5,279 | | | | $5,874 | |
Average net assets (000) | | | | | $3,134 | | | | $3,561 | | | | $4,688 | | | | $5,725 | | | | $8,068 | |
Ratios to average net assets(e): | | | | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | | | 2.37 | % | | | 2.27 | % | | | 2.12 | % | | | 2.03 | % | | | 2.02 | % |
Expenses before waivers and/or expense reimbursement | | | | | 2.37 | % | | | 2.27 | % | | | 2.12 | % | | | 2.03 | % | | | 2.02 | % |
Net investment income (loss) | | | | | (0.21 | )% | | | (0.17 | )% | | | (0.14 | )% | | | (0.39 | )% | | | (0.02 | )% |
Portfolio turnover rate(f) | | | | | 42 | % | | | 37 | % | | | 31 | % | | | 32 | % | | | 128 | % |
| (a) | Calculated based on average shares outstanding during the year. |
| (b) | The per share amount of net investment income (loss) does not directly correlate to the amounts reported in the Statement of Operations due to class specific expenses. |
| (c) | Amount rounds to zero. |
| (d) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. |
| (e) | Does not include expenses of the underlying funds in which the Fund invests. |
| (f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
12
PGIM Jennison Focused Value Fund
Financial Highlights (continued)
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Year Ended September 30, | |
| | |
| | | | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning of Year | | | | | $14.28 | | | | $12.54 | | | | $15.33 | | | | $11.75 | | | | $13.30 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | | | 0.10 | | | | 0.08 | | | | 0.07 | | | | 0.02 | | | | 0.05 | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | | | 4.52 | | | | 2.15 | | | | (2.06 | ) | | | 3.68 | | | | (0.30 | ) |
Total from investment operations | | | | | 4.62 | | | | 2.23 | | | | (1.99 | ) | | | 3.70 | | | | (0.25 | ) |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | | | (0.13 | ) | | | (0.11 | ) | | | (0.05 | ) | | | (0.12 | ) | | | (0.11 | ) |
Distributions from net realized gains | | | | | (1.53 | ) | | | (0.38 | ) | | | (0.75 | ) | | | - | | | | (1.19 | ) |
Total dividends and distributions | | | | | (1.66 | ) | | | (0.49 | ) | | | (0.80 | ) | | | (0.12 | ) | | | (1.30 | ) |
Net asset value, end of year | | | | | $17.24 | | | | $14.28 | | | | $12.54 | | | | $15.33 | | | | $11.75 | |
Total Return(b): | | | | | 35.31 | % | | | 18.03 | % | | | (13.99 | )% | | | 31.64 | % | | | (2.82 | )% |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year (000) | | | | | $241 | | | | $233 | | | | $431 | | | | $487 | | | | $494 | |
Average net assets (000) | | | | | $252 | | | | $370 | | | | $492 | | | | $562 | | | | $1,047 | |
Ratios to average net assets(c): | | | | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | | | 1.53 | % | | | 1.53 | % | | | 1.53 | % | | | 1.53 | % | | | 1.53 | % |
Expenses before waivers and/or expense reimbursement | | | | | 4.11 | % | | | 3.21 | % | | | 2.72 | % | | | 2.74 | % | | | 2.91 | % |
Net investment income (loss) | | | | | 0.64 | % | | | 0.60 | % | | | 0.49 | % | | | 0.11 | % | | | 0.38 | % |
Portfolio turnover rate(d) | | | | | 42 | % | | | 37 | % | | | 31 | % | | | 32 | % | | | 128 | % |
| (a) | Calculated based on average shares outstanding during the year. |
| (b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. |
| (c) | Does not include expenses of the underlying funds in which the Fund invests. |
| (d) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Jennison Focused Value Fund 13
PGIM Jennison Focused Value Fund
Financial Highlights (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Class Z Shares | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended September 30, |
| |
| | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 |
Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning of Year | | | | $18.54 | | | | | $16.11 | | | | | $19.44 | | | | | $14.82 | | | | | $16.43 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | | 0.29 | | | | | 0.24 | | | | | 0.22 | | | | | 0.15 | | | | | 0.18 | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | | 5.99 | | | | | 2.78 | | | | | (2.65 | ) | | | | 4.65 | | | | | (0.42 | ) |
Total from investment operations | | | | 6.28 | | | | | 3.02 | | | | | (2.43 | ) | | | | 4.80 | | | | | (0.24 | ) |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | | (0.24 | ) | | | | (0.21 | ) | | | | (0.15 | ) | | | | (0.18 | ) | | | | (0.18 | ) |
Distributions from net realized gains | | | | (1.53 | ) | | | | (0.38 | ) | | | | (0.75 | ) | | | | - | | | | | (1.19 | ) |
Total dividends and distributions | | | | (1.77 | ) | | | | (0.59 | ) | | | | (0.90 | ) | | | | (0.18 | ) | | | | (1.37 | ) |
Net asset value, end of year | | | | $23.05 | | | | | $18.54 | | | | | $16.11 | | | | | $19.44 | | | | | $14.82 | |
Total Return(b): | | | | 36.34 | % | | | | 18.97 | % | | | | (13.39 | )% | | | | 32.52 | % | | | | (2.16 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year (000) | | | | $39,789 | | | | | $23,203 | | | | | $23,080 | | | | | $30,080 | | | | | $30,153 | |
Average net assets (000) | | | | $31,748 | | | | | $22,891 | | | | | $28,698 | | | | | $30,701 | | | | | $40,142 | |
Ratios to average net assets(c): | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | | 0.75 | % | | | | 0.75 | % | | | | 0.83 | % | | | | 0.82 | % | | | | 0.84 | % |
Expenses before waivers and/or expense reimbursement | | | | 0.87 | % | | | | 0.86 | % | | | | 0.83 | % | | | | 0.82 | % | | | | 0.84 | % |
Net investment income (loss) | | | | 1.40 | % | | | | 1.33 | % | | | | 1.17 | % | | | | 0.82 | % | | | | 1.15 | % |
Portfolio turnover rate(d) | | | | 42 | % | | | | 37 | % | | | | 31 | % | | | | 32 | % | | | | 128 | % |
| (a) | Calculated based on average shares outstanding during the year. |
| (b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. |
| (c) | Does not include expenses of the underlying funds in which the Fund invests. |
| (d) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
14
PGIM Jennison Focused Value Fund
Financial Highlights (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Year Ended September 30, |
| |
| | | | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 |
Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning of Year | | | | | | $18.49 | | | | | $16.06 | | | | | $19.39 | | | | | $14.79 | | | | | $16.39 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | | | | 0.28 | | | | | 0.24 | | | | | 0.23 | | | | | 0.15 | | | | | 0.18 | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | | | | 5.97 | | | | | 2.78 | | | | | (2.66 | ) | | | | 4.63 | | | | | (0.41 | ) |
Total from investment operations | | | | | | 6.25 | | | | | 3.02 | | | | | (2.43 | ) | | | | 4.78 | | | | | (0.23 | ) |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | | | | (0.24 | ) | | | | (0.21 | ) | | | | (0.15 | ) | | | | (0.18 | ) | | | | (0.18 | ) |
Distributions from net realized gains | | | | | | (1.53 | ) | | | | (0.38 | ) | | | | (0.75 | ) | | | | - | | | | | (1.19 | ) |
Total dividends and distributions | | | | | | (1.77 | ) | | | | (0.59 | ) | | | | (0.90 | ) | | | | (0.18 | ) | | | | (1.37 | ) |
Net asset value, end of year | | | | | | $22.97 | | | | | $18.49 | | | | | $16.06 | | | | | $19.39 | | | | | $14.79 | |
Total Return(b): | | | | | | 36.28 | % | | | | 19.03 | % | | | | (13.43 | )% | | | | 32.54 | % | | | | (2.17 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year (000) | | | | | | $6,089 | | | | | $3,392 | | | | | $4,902 | | | | | $2,878 | | | | | $1,151 | |
Average net assets (000) | | | | | | $4,509 | | | | | $4,806 | | | | | $2,998 | | | | | $1,894 | | | | | $1,210 | |
Ratios to average net assets(c): | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | | | | 0.75 | % | | | | 0.75 | % | | | | 0.83 | % | | | | 0.82 | % | | | | 0.84 | % |
Expenses before waivers and/or expense reimbursement | | | | | | 1.04 | % | | | | 0.90 | % | | | | 1.00 | % | | | | 0.98 | % | | | | 1.83 | % |
Net investment income (loss) | | | | | | 1.38 | % | | | | 1.35 | % | | | | 1.20 | % | | | | 0.80 | % | | | | 1.17 | % |
Portfolio turnover rate(d) | | | | | | 42 | % | | | | 37 | % | | | | 31 | % | | | | 32 | % | | | | 128 | % |
| (a) | Calculated based on average shares outstanding during the year. |
| (b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. |
| (c) | Does not include expenses of the underlying funds in which the Fund invests. |
| (d) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Jennison Focused Value Fund 15
PGIM Jennison Growth Fund
Schedule of Investments
as of September 30, 2024
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
LONG-TERM INVESTMENTS 99.7% | | | | | | | | |
| | |
COMMON STOCKS | | | | | | | | |
| | |
Aerospace & Defense 2.1% | | | | | | | | |
| | |
Boeing Co. (The)* | | | 565,964 | | | $ | 86,049,166 | |
General Electric Co. | | | 479,503 | | | | 90,424,676 | |
| | | | | | | | |
| | |
| | | | | | | 176,473,842 | |
| | |
Automobiles 2.8% | | | | | | | | |
| | |
Tesla, Inc.* | | | 903,274 | | | | 236,323,577 | |
| | |
Banks 0.4% | | | | | | | | |
| | |
NU Holdings Ltd. (Brazil) (Class A Stock)* | | | 2,699,437 | | | | 36,847,315 | |
| | |
Biotechnology 1.8% | | | | | | | | |
| | |
Vertex Pharmaceuticals, Inc.* | | | 332,651 | | | | 154,709,327 | |
| | |
Broadline Retail 9.5% | | | | | | | | |
| | |
Amazon.com, Inc.* | | | 3,517,383 | | | | 655,393,974 | |
MercadoLibre, Inc. (Brazil)* | | | 77,897 | | | | 159,841,528 | |
| | | | | | | | |
| | |
| | | | | | | 815,235,502 | |
| | |
Capital Markets 2.0% | | | | | | | | |
| | |
Goldman Sachs Group, Inc. (The) | | | 176,977 | | | | 87,623,082 | |
Moody’s Corp. | | | 179,813 | | | | 85,337,452 | |
| | | | | | | | |
| | |
| | | | | | | 172,960,534 | |
| | |
Consumer Staples Distribution & Retail 3.1% | | | | | | | | |
| | |
Costco Wholesale Corp. | | | 198,820 | | | | 176,257,906 | |
Walmart, Inc. | | | 1,075,137 | | | | 86,817,313 | |
| | | | | | | | |
| | |
| | | | | | | 263,075,219 | |
| | |
Electrical Equipment 1.4% | | | | | | | | |
| | |
Eaton Corp. PLC | | | 258,923 | | | | 85,817,439 | |
Vertiv Holdings Co. (Class A Stock) | | | 342,374 | | | | 34,062,789 | |
| | | | | | | | |
| | |
| | | | | | | 119,880,228 | |
See Notes to Financial Statements.
16
PGIM Jennison Growth Fund
Schedule of Investments (continued)
as of September 30, 2024
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Entertainment 5.1% | | | | | | | | |
| | |
Netflix, Inc.* | | | 467,025 | | | $ | 331,246,822 | |
Walt Disney Co. (The) | | | 1,103,724 | | | | 106,167,211 | |
| | | | | | | | |
| | |
| | | | | | | 437,414,033 | |
| | |
Financial Services 4.9% | | | | | | | | |
| | |
Mastercard, Inc. (Class A Stock) | | | 449,310 | | | | 221,869,278 | |
Visa, Inc. (Class A Stock) | | | 714,829 | | | | 196,542,234 | |
| | | | | | | | |
| | |
| | | | | | | 418,411,512 | |
| | |
Ground Transportation 1.3% | | | | | | | | |
| | |
Uber Technologies, Inc.* | | | 1,517,091 | | | | 114,024,560 | |
| | |
Health Care Equipment & Supplies 1.7% | | | | | | | | |
| | |
Dexcom, Inc.* | | | 535,756 | | | | 35,917,082 | |
Intuitive Surgical, Inc.* | | | 228,318 | | | | 112,165,784 | |
| | | | | | | | |
| | |
| | | | | | | 148,082,866 | |
| | |
Hotels, Restaurants & Leisure 2.3% | | | | | | | | |
| | |
Airbnb, Inc. (Class A Stock)* | | | 691,010 | | | | 87,626,978 | |
Hilton Worldwide Holdings, Inc. | | | 278,453 | | | | 64,183,417 | |
Marriott International, Inc. (Class A Stock) | | | 196,444 | | | | 48,835,978 | |
| | | | | | | | |
| | |
| | | | | | | 200,646,373 | |
| | |
Insurance 1.2% | | | | | | | | |
| | |
Progressive Corp. (The) | | | 399,866 | | | | 101,469,996 | |
| | |
Interactive Media & Services 10.1% | | | | | | | | |
| | |
Alphabet, Inc. (Class A Stock) | | | 1,120,658 | | | | 185,861,129 | |
Alphabet, Inc. (Class C Stock) | | | 1,109,851 | | | | 185,555,989 | |
Meta Platforms, Inc. (Class A Stock) | | | 857,505 | | | | 490,870,162 | |
| | | | | | | | |
| | |
| | | | | | | 862,287,280 | |
| | |
IT Services 1.2% | | | | | | | | |
| | |
MongoDB, Inc.* | | | 232,557 | | | | 62,871,785 | |
Snowflake, Inc. (Class A Stock)* | | | 330,123 | | | | 37,917,928 | |
| | | | | | | | |
| | |
| | | | | | | 100,789,713 | |
See Notes to Financial Statements.
PGIM Jennison Growth Fund 17
PGIM Jennison Growth Fund
Schedule of Investments (continued)
as of September 30, 2024
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Media 1.5% | | | | | | | | |
| | |
Trade Desk, Inc. (The) (Class A Stock)* | | | 1,201,362 | | | $ | 131,729,343 | |
| | |
Pharmaceuticals 7.0% | | | | | | | | |
| | |
AstraZeneca PLC (United Kingdom), ADR | | | 985,113 | | | | 76,750,154 | |
Eli Lilly & Co. | | | 392,695 | | | | 347,904,208 | |
Novo Nordisk A/S (Denmark), ADR | | | 1,439,688 | | | | 171,423,650 | |
| | | | | | | | |
| | |
| | | | | | | 596,078,012 | |
| | |
Semiconductors & Semiconductor Equipment 17.0% | | | | | | | | |
| | |
Advanced Micro Devices, Inc.* | | | 702,873 | | | | 115,327,402 | |
Analog Devices, Inc. | | | 329,345 | | | | 75,805,339 | |
ASML Holding NV (Netherlands) | | | 106,485 | | | | 88,728,626 | |
Broadcom, Inc. | | | 2,490,666 | | | | 429,639,885 | |
NVIDIA Corp. | | | 6,205,548 | | | | 753,601,749 | |
| | | | | | | | |
| | |
| | | | | | | 1,463,103,001 | |
| | |
Software 14.3% | | | | | | | | |
| | |
Adobe, Inc.* | | | 146,447 | | | | 75,827,328 | |
Cadence Design Systems, Inc.* | | | 432,955 | | | | 117,343,794 | |
Crowdstrike Holdings, Inc. (Class A Stock)* | | | 352,652 | | | | 98,908,306 | |
Datadog, Inc. (Class A Stock)* | | | 537,346 | | | | 61,827,031 | |
Microsoft Corp. | | | 1,502,755 | | | | 646,635,476 | |
Palo Alto Networks, Inc.* | | | 161,206 | | | | 55,100,211 | |
Salesforce, Inc. | | | 161,170 | | | | 44,113,841 | |
ServiceNow, Inc.* | | | 145,511 | | | | 130,143,583 | |
| | | | | | | | |
| | |
| | | | | | | 1,229,899,570 | |
| | |
Specialty Retail 2.4% | | | | | | | | |
| | |
Home Depot, Inc. (The) | | | 114,656 | | | | 46,458,611 | |
O’Reilly Automotive, Inc.* | | | 87,103 | | | | 100,307,815 | |
TJX Cos., Inc. (The) | | | 517,540 | | | | 60,831,652 | |
| | | | | | | | |
| | |
| | | | | | | 207,598,078 | |
| | |
Technology Hardware, Storage & Peripherals 5.7% | | | | | | | | |
| | |
Apple, Inc. | | | 2,112,749 | | | | 492,270,517 | |
See Notes to Financial Statements.
18
PGIM Jennison Growth Fund
Schedule of Investments (continued)
as of September 30, 2024
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Textiles, Apparel & Luxury Goods 0.9% | | | | | | | | |
| | |
adidas AG (Germany) | | | 282,211 | | | $ | 74,782,148 | |
| | | | | | | | |
| | |
TOTAL LONG-TERM INVESTMENTS
(cost $3,662,747,151) | | | | | | | 8,554,092,546 | |
| | | | | | | | |
| | |
SHORT-TERM INVESTMENT 0.5% | | | | | | | | |
| | |
AFFILIATED MUTUAL FUND | | | | | | | | |
PGIM Core Government Money Market Fund (7-day effective yield 5.140%)
(cost $45,164,368)(wb) | | | 45,164,368 | | | | 45,164,368 | |
| | | | | | | | |
| | |
TOTAL INVESTMENTS 100.2%
(cost $3,707,911,519) | | | | | | | 8,599,256,914 | |
Liabilities in excess of other assets (0.2)% | | | | | | | (13,168,315) | |
| | | | | | | | |
| | |
NET ASSETS 100.0% | | | | | | $ | 8,586,088,599 | |
| | | | | | | | |
See the Glossary for a list of the abbreviation(s) used in the annual report.
| * | Non-income producing security. |
| (wb) | Represents an investment in a Fund affiliated with the Manager. |
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 September 30, 2024 in valuing such portfolio securities:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | |
Investments in Securities | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Long-Term Investments | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Aerospace & Defense | | $ | 176,473,842 | | | | | | | $ | — | | | | | | | | | | | | $— | | | | | |
Automobiles | | | 236,323,577 | | | | | | | | — | | | | | | | | | | | | — | | | | | |
Banks | | | 36,847,315 | | | | | | | | — | | | | | | | | | | | | — | | | | | |
See Notes to Financial Statements.
PGIM Jennison Growth Fund 19
PGIM Jennison Growth Fund
Schedule of Investments (continued)
as of September 30, 2024
| | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | |
Investments in Securities (continued) | | | | | | | | | | | | |
Assets (continued) | | | | | | | | | | | | |
Long-Term Investments (continued) | | | | | | | | | | | | |
Common Stocks (continued) | | | | | | | | | | | | |
Biotechnology | | $ | 154,709,327 | | | $ | — | | | | $— | |
Broadline Retail | | | 815,235,502 | | | | — | | | | — | |
Capital Markets | | | 172,960,534 | | | | — | | | | — | |
Consumer Staples Distribution & Retail | | | 263,075,219 | | | | — | | | | — | |
Electrical Equipment | | | 119,880,228 | | | | — | | | | — | |
Entertainment | | | 437,414,033 | | | | — | | | | — | |
Financial Services | | | 418,411,512 | | | | — | | | | — | |
Ground Transportation | | | 114,024,560 | | | | — | | | | — | |
Health Care Equipment & Supplies | | | 148,082,866 | | | | — | | | | — | |
Hotels, Restaurants & Leisure | | | 200,646,373 | | | | — | | | | — | |
Insurance | | | 101,469,996 | | | | — | | | | — | |
Interactive Media & Services | | | 862,287,280 | | | | — | | | | — | |
IT Services | | | 100,789,713 | | | | — | | | | — | |
Media | | | 131,729,343 | | | | — | | | | — | |
Pharmaceuticals | | | 596,078,012 | | | | — | | | | — | |
Semiconductors & Semiconductor Equipment | | | 1,463,103,001 | | | | — | | | | — | |
Software | | | 1,229,899,570 | | | | — | | | | — | |
Specialty Retail | | | 207,598,078 | | | | — | | | | — | |
Technology Hardware, Storage & Peripherals | | | 492,270,517 | | | | — | | | | — | |
Textiles, Apparel & Luxury Goods | | | — | | | | 74,782,148 | | | | — | |
Short-Term Investment | | | | | | | | | | | | |
Affiliated Mutual Fund | | | 45,164,368 | | | | — | | | | — | |
| | | | | | | | | | | | |
Total | | $ | 8,524,474,766 | | | $ | 74,782,148 | | | | $— | |
| | | | | | | | | | | | |
Industry Classification:
The industry classification of investments and liabilities in excess of other assets shown as a percentage of net assets as of September 30, 2024 were as follows:
| | | | |
Semiconductors & Semiconductor Equipment | | | 17.0 | % |
Software | | | 14.3 | |
Interactive Media & Services | | | 10.1 | |
Broadline Retail | | | 9.5 | |
Pharmaceuticals | | | 7.0 | |
Technology Hardware, Storage & Peripherals | | | 5.7 | |
Entertainment | | | 5.1 | |
Financial Services | | | 4.9 | |
Consumer Staples Distribution & Retail | | | 3.1 | |
Automobiles | | | 2.8 | |
Specialty Retail | | | 2.4 | |
| | | | |
Hotels, Restaurants & Leisure | | | 2.3 | % |
Aerospace & Defense | | | 2.1 | |
Capital Markets | | | 2.0 | |
Biotechnology | | | 1.8 | |
Health Care Equipment & Supplies | | | 1.7 | |
Media | | | 1.5 | |
Electrical Equipment | | | 1.4 | |
Ground Transportation | | | 1.3 | |
Insurance | | | 1.2 | |
IT Services | | | 1.2 | |
See Notes to Financial Statements.
20
PGIM Jennison Growth Fund
Schedule of Investments (continued)
as of September 30, 2024
Industry Classification (continued):
| | | | |
Textiles, Apparel & Luxury Goods | | | 0.9 | % |
Affiliated Mutual Funds | | | 0.5 | |
| | | | |
Banks | | | 0.4 | % |
| | | | |
| | | 100.2 | |
Liabilities in excess of other assets | | | (0.2 | ) |
| | | | |
| |
| | | 100.0 | % |
| | | | |
See Notes to Financial Statements.
PGIM Jennison Growth Fund 21
PGIM Jennison Growth Fund
Statement of Assets & Liabilities
as of September 30, 2024
| | | | |
| |
Assets | | | | |
| |
Investments at value: | | | | |
Unaffiliated investments (cost $3,662,747,151) | | $ | 8,554,092,546 | |
Affiliated investments (cost $45,164,368) | | | 45,164,368 | |
Foreign currency, at value (cost $1,286) | | | 1,287 | |
Receivable for Fund shares sold | | | 8,147,574 | |
Receivable for investments sold | | | 5,977,787 | |
Tax reclaim receivable | | | 1,162,777 | |
Dividends receivable | | | 260,784 | |
Prepaid expenses | | | 84,947 | |
| | | | |
Total Assets | | | 8,614,892,070 | |
| | | | |
| |
Liabilities | | | | |
Payable for Fund shares purchased | | | 12,813,103 | |
Payable for investments purchased | | | 10,013,618 | |
Management fee payable | | | 3,862,078 | |
Accrued expenses and other liabilities | | | 1,338,814 | |
Distribution fee payable | | | 672,421 | |
Affiliated transfer agent fee payable | | | 102,477 | |
Directors’ fees payable | | | 960 | |
| | | | |
Total Liabilities | | | 28,803,471 | |
| | | | |
| |
Net Assets | | $ | 8,586,088,599 | |
| | | | |
| |
| | | | |
Net assets were comprised of: | | | | |
Common stock, at par | | $ | 126,163 | |
Paid-in capital in excess of par | | | 2,863,237,332 | |
Total distributable earnings (loss) | | | 5,722,725,104 | |
| | | | |
| |
Net assets, September 30, 2024 | | $ | 8,586,088,599 | |
| | | | |
See Notes to Financial Statements.
22
PGIM Jennison Growth Fund
Statement of Assets & Liabilities (continued)
as of September 30, 2024
| | | | | | | | |
Class A | | | | | | | | |
| | |
Net asset value and redemption price per share, ($1,970,456,245 ÷ 31,475,785 shares of common stock issued and outstanding) | | $ | 62.60 | | | | | |
Maximum sales charge (5.50% of offering price) | | | 3.64 | | | | | |
| | | | | | | | |
| | |
Maximum offering price to public | | $ | 66.24 | | | | | |
| | | | | | | | |
| | |
Class C | | | | | | | | |
| | |
Net asset value, offering price and redemption price per share, ($116,698,761 ÷ 2,868,321 shares of common stock issued and outstanding) | | $ | 40.69 | | | | | |
| | | | | | | | |
| | |
Class R | | | | | | | | |
| | |
Net asset value, offering price and redemption price per share, ($257,434,133 ÷ 5,185,792 shares of common stock issued and outstanding) | | $ | 49.64 | | | | | |
| | | | | | | | |
| | |
Class Z | | | | | | | | |
| | |
Net asset value, offering price and redemption price per share, ($4,100,690,943 ÷ 57,081,289 shares of common stock issued and outstanding) | | $ | 71.84 | | | | | |
| | | | | | | | |
| | |
Class R2 | | | | | | | | |
| | |
Net asset value, offering price and redemption price per share, ($3,172,583 ÷ 45,670 shares of common stock issued and outstanding) | | $ | 69.47 | | | | | |
| | | | | | | | |
| | |
Class R4 | | | | | | | | |
| | |
Net asset value, offering price and redemption price per share, ($22,035,434 ÷ 310,424 shares of common stock issued and outstanding) | | $ | 70.98 | | | | | |
| | | | | | | | |
| | |
Class R6 | | | | | | | | |
| | |
Net asset value, offering price and redemption price per share, ($2,115,600,500 ÷ 29,196,028 shares of common stock issued and outstanding) | | $ | 72.46 | | | | | |
| | | | | | | | |
Net asset value per share may not recalculate due to rounding.
See Notes to Financial Statements.
PGIM Jennison Growth Fund 23
PGIM Jennison Growth Fund
Statement of Operations
Year Ended September 30, 2024
| | | | |
Net Investment Income (Loss) | | | | |
| |
Income | | | | |
Unaffiliated dividend income (net of $832,283 foreign withholding tax) | | $ | 40,716,327 | |
Affiliated dividend income | | | 2,289,764 | |
Affiliated income from securities lending, net | | | 434,343 | |
| | | | |
| |
Total income | | | 43,440,434 | |
| | | | |
| |
Expenses | | | | |
Management fee | | | 43,325,456 | |
Distribution fee(a) | | | 8,427,095 | |
Shareholder servicing fees(a) | | | 21,472 | |
Transfer agent’s fees and expenses (including affiliated expense of $611,528)(a) | | | 6,385,969 | |
Custodian and accounting fees | | | 434,521 | |
Shareholders’ reports | | | 204,896 | |
Registration fees(a) | | | 180,974 | |
Directors’ fees | | | 116,200 | |
Professional fees | | | 92,721 | |
Audit fee | | | 26,156 | |
Miscellaneous | | | 112,557 | |
| | | | |
Total expenses | | | 59,328,017 | |
Less: Fee waiver and/or expense reimbursement(a) | | | (8,717 | ) |
Distribution fee waiver(a) | | | (634,382 | ) |
| | | | |
| |
Net expenses | | | 58,684,918 | |
| | | | |
| |
Net investment income (loss) | | | (15,244,484 | ) |
| | | | |
Realized And Unrealized Gain (Loss) On Investment And Foreign Currency Transactions | | | | |
| |
Net realized gain (loss) on: | | | | |
Investment transactions (including affiliated of $141,254) | | | 900,148,627 | |
Foreign currency transactions | | | (77,827 | ) |
| | | | |
| |
| | | 900,070,800 | |
| | | | |
| |
Net change in unrealized appreciation (depreciation) on: | | | | |
Investments (including affiliated of $(139,246)) | | | 1,729,709,569 | |
Foreign currencies | | | 27,486 | |
| | | | |
| |
| | | 1,729,737,055 | |
| | | | |
| |
Net gain (loss) on investment and foreign currency transactions | | | 2,629,807,855 | |
| | | | |
| |
Net Increase (Decrease) In Net Assets Resulting From Operations | | $ | 2,614,563,371 | |
| | | | |
See Notes to Financial Statements.
24
PGIM Jennison Growth Fund
Statement of Operations (continued)
Year Ended September 30, 2024
| (a) | Class specific expenses and waivers were as follows: |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | | | Class C | | | Class R | | | Class Z | | | Class R2 | | | Class R4 | | Class R6 |
Distribution fee | | | 5,398,120 | | | | 1,120,490 | | | | 1,903,144 | | | | — | | | | 5,341 | | | — | | — |
Shareholder servicing fees | | | — | | | | — | | | | — | | | | — | | | | 2,137 | | | 19,335 | | — |
Transfer agent’s fees and expenses | | | 1,672,909 | | | | 102,203 | | | | 321,368 | | | | 4,246,790 | | | | 3,694 | | | 30,397 | | 8,608 |
Registration fees | | | 23,738 | | | | 21,423 | | | | 12,002 | | | | 79,112 | | | | 6,544 | | | 6,045 | | 32,110 |
Fee waiver and/or expense reimbursement | | | — | | | | — | | | | — | | | | — | | | | (6,457 | ) | | (2,260) | | — |
Distribution fee waiver | | | — | | | | — | | | | (634,382 | ) | | | — | | | | — | | | — | | — |
See Notes to Financial Statements.
PGIM Jennison Growth Fund 25
PGIM Jennison Growth Fund
Statements of Changes in Net Assets
| | | | | | | | |
| |
| | | Year Ended
September 30, | |
| | |
| | | 2024 | | | 2023 | |
| | |
Increase (Decrease) in Net Assets | | | | | | | | |
| | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | (15,244,484 | ) | | $ | (6,395,401 | ) |
Net realized gain (loss) on investment and foreign currency transactions | | | 900,070,800 | | | | 456,531,420 | |
Net change in unrealized appreciation (depreciation) on investments and foreign currencies | | | 1,729,737,055 | | | | 1,025,521,600 | |
| | | | | | | | |
Net increase (decrease) in net assets resulting from operations | | | 2,614,563,371 | | | | 1,475,657,619 | |
| | | | | | | | |
| | |
Dividends and Distributions | | | | | | | | |
Distributions from distributable earnings | | | | | | | | |
Class A | | | (114,654,868 | ) | | | (33,330,006 | ) |
Class C | | | (11,137,327 | ) | | | (3,483,621 | ) |
Class R | | | (21,711,755 | ) | | | (6,850,731 | ) |
Class Z | | | (198,178,551 | ) | | | (58,070,492 | ) |
Class R2 | | | (94,076 | ) | | | (109,679 | ) |
Class R4 | | | (1,079,211 | ) | | | (311,583 | ) |
Class R6 | | | (103,766,492 | ) | | | (22,191,684 | ) |
| | | | | | | | |
| | | (450,622,280 | ) | | | (124,347,796 | ) |
| | | | | | | | |
| | |
Fund share transactions (Net of share conversions) | | | | | | | | |
Net proceeds from shares sold | | | 1,664,578,905 | | | | 1,193,006,831 | |
Net asset value of shares issued in reinvestment of dividends and distributions | | | 419,590,297 | | | | 114,468,735 | |
Cost of shares purchased | | | (1,942,017,969 | ) | | | (1,476,921,234 | ) |
| | | | | | | | |
Net increase (decrease) in net assets from Fund share transactions | | | 142,151,233 | | | | (169,445,668 | ) |
| | | | | | | | |
Total increase (decrease) | | | 2,306,092,324 | | | | 1,181,864,155 | |
| | |
Net Assets: | | | | | | | | |
| | |
Beginning of year | | | 6,279,996,275 | | | | 5,098,132,120 | |
| | | | | | | | |
End of year | | $ | 8,586,088,599 | | | $ | 6,279,996,275 | |
| | | | | | | | |
See Notes to Financial Statements.
26
PGIM Jennison Growth Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Year Ended September 30, | |
| | |
| | | | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning of Year | | | | | $47.30 | | | | $37.36 | | | | $64.97 | | | | $57.22 | | | | $39.94 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | | | (0.23 | ) | | | (0.14 | ) | | | (0.27 | ) | | | (0.40 | ) | | | (0.21 | ) |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | | | 19.23 | | | | 11.08 | | | | (18.61 | ) | | | 13.46 | | | | 20.86 | |
Total from investment operations | | | | | 19.00 | | | | 10.94 | | | | (18.88 | ) | | | 13.06 | | | | 20.65 | |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | | | |
Distributions from net realized gains | | | | | (3.70 | ) | | | (1.00 | ) | | | (8.73 | ) | | | (5.31 | ) | | | (3.37 | ) |
Net asset value, end of year | | | | | $62.60 | | | | $47.30 | | | | $37.36 | | | | $64.97 | | | | $57.22 | |
Total Return(b): | | | | | 42.25 | % | | | 29.95 | % | | | (34.17 | )% | | | 24.17 | % | | | 55.32 | % |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year (000) | | | | | $1,970,456 | | | | $1,484,563 | | | | $1,277,205 | | | | $2,112,035 | | | | $1,816,527 | |
Average net assets (000) | | | | | $1,799,373 | | | | $1,411,274 | | | | $1,753,612 | | | | $2,031,924 | | | | $1,454,874 | |
Ratios to average net assets(c): | | | | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | | | 0.97 | % | | | 1.01 | % | | | 0.99 | % | | | 0.97 | % | | | 1.00 | % |
Expenses before waivers and/or expense reimbursement | | | | | 0.97 | % | | | 1.01 | % | | | 0.99 | % | | | 0.97 | % | | | 1.00 | % |
Net investment income (loss) | | | | | (0.40 | )% | | | (0.34 | )% | | | (0.53 | )% | | | (0.65 | )% | | | (0.46 | )% |
Portfolio turnover rate(d) | | | | | 37 | % | | | 37 | % | | | 35 | % | | | 46 | % | | | 49 | % |
| (a) | Calculated based on average shares outstanding during the year. |
| (b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. |
| (c) | Does not include expenses of the underlying funds in which the Fund invests. |
| (d) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Jennison Growth Fund 27
PGIM Jennison Growth Fund
Financial Highlights (continued)
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Year Ended September 30, | |
| | |
| | | | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning of Year | | | | | $32.10 | | | | $25.84 | | | | $47.75 | | | | $43.62 | | | | $31.38 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | | | (0.41 | ) | | | (0.30 | ) | | | (0.43 | ) | | | (0.61 | ) | | | (0.39 | ) |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | | | 12.70 | | | | 7.56 | | | | (12.75 | ) | | | 10.05 | | | | 16.00 | |
Total from investment operations | | | | | 12.29 | | | | 7.26 | | | | (13.18 | ) | | | 9.44 | | | | 15.61 | |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | | | |
Distributions from net realized gains | | | | | (3.70 | ) | | | (1.00 | ) | | | (8.73 | ) | | | (5.31 | ) | | | (3.37 | ) |
Net asset value, end of year | | | | | $40.69 | | | | $32.10 | | | | $25.84 | | | | $47.75 | | | | $43.62 | |
Total Return(b): | | | | | 41.28 | % | | | 29.04 | % | | | (34.61 | )% | | | 23.33 | % | | | 54.27 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year (000) | | | | | $116,699 | | | | $99,389 | | | | $96,604 | | | | $175,778 | | | | $165,724 | |
Average net assets (000) | | | | | $112,049 | | | | $98,063 | | | | $140,735 | | | | $175,013 | | | | $135,568 | |
Ratios to average net assets(c): | | | | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | | | 1.68 | % | | | 1.71 | % | | | 1.68 | % | | | 1.66 | % | | | 1.68 | % |
Expenses before waivers and/or expense reimbursement | | | | | 1.68 | % | | | 1.71 | % | | | 1.68 | % | | | 1.66 | % | | | 1.68 | % |
Net investment income (loss) | | | | | (1.12 | )% | | | (1.03 | )% | | | (1.22 | )% | | | (1.33 | )% | | | (1.13 | )% |
Portfolio turnover rate(d) | | | | | 37 | % | | | 37 | % | | | 35 | % | | | 46 | % | | | 49 | % |
| (a) | Calculated based on average shares outstanding during the year. |
| (b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. |
| (c) | Does not include expenses of the underlying funds in which the Fund invests. |
| (d) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
28
PGIM Jennison Growth Fund
Financial Highlights (continued)
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Year Ended September 30, | |
| | |
| | | | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning of Year | | | | | $38.27 | | | | $30.48 | | | | $54.62 | | | | $48.99 | | | | $34.71 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | | | (0.28 | ) | | | (0.19 | ) | | | (0.31 | ) | | | (0.46 | ) | | | (0.25 | ) |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | | | 15.35 | | | | 8.98 | | | | (15.10 | ) | | | 11.40 | | | | 17.90 | |
Total from investment operations | | | | | 15.07 | | | | 8.79 | | | | (15.41 | ) | | | 10.94 | | | | 17.65 | |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | | | |
Distributions from net realized gains | | | | | (3.70 | ) | | | (1.00 | ) | | | (8.73 | ) | | | (5.31 | ) | | | (3.37 | ) |
Net asset value, end of year | | | | | $49.64 | | | | $38.27 | | | | $30.48 | | | | $54.62 | | | | $48.99 | |
Total Return(b): | | | | | 41.93 | % | | | 29.65 | % | | | (34.30 | )% | | | 23.88 | % | | | 54.99 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year (000) | | | | | $257,434 | | | | $229,496 | | | | $214,699 | | | | $340,339 | | | | $300,323 | |
Average net assets (000) | | | | | $253,753 | | | | $234,912 | | | | $285,127 | | | | $334,043 | | | | $278,701 | |
Ratios to average net assets(c): | | | | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | | | 1.20 | % | | | 1.22 | % | | | 1.21 | % | | | 1.21 | % | | | 1.21 | % |
Expenses before waivers and/or expense reimbursement | | | | | 1.45 | % | | | 1.47 | % | | | 1.46 | % | | | 1.46 | % | | | 1.46 | % |
Net investment income (loss) | | | | | (0.64 | )% | | | (0.54 | )% | | | (0.75 | )% | | | (0.88 | )% | | | (0.66 | )% |
Portfolio turnover rate(d) | | | | | 37 | % | | | 37 | % | | | 35 | % | | | 46 | % | | | 49 | % |
| (a) | Calculated based on average shares outstanding during the year. |
| (b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. |
| (c) | Does not include expenses of the underlying funds in which the Fund invests. |
| (d) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Jennison Growth Fund 29
PGIM Jennison Growth Fund
Financial Highlights (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Class Z Shares | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended September 30, |
| | | | | | | | | | | |
| | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 |
Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning of Year | | | | $53.65 | | | | | $42.12 | | | | | $71.99 | | | | | $62.71 | | | | | $43.34 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | | (0.09 | ) | | | | (0.01 | ) | | | | (0.13 | ) | | | | (0.25 | ) | | | | (0.07 | ) |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | | 21.98 | | | | | 12.54 | | | | | (21.01 | ) | | | | 14.84 | | | | | 22.81 | |
Total from investment operations | | | | 21.89 | | | | | 12.53 | | | | | (21.14 | ) | | | | 14.59 | | | | | 22.74 | |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | |
Distributions from net realized gains | | | | (3.70 | ) | | | | (1.00 | ) | | | | (8.73 | ) | | | | (5.31 | ) | | | | (3.37 | ) |
Net asset value, end of year | | | | $71.84 | | | | | $53.65 | | | | | $42.12 | | | | | $71.99 | | | | | $62.71 | |
Total Return(b): | | | | 42.66 | % | | | | 30.35 | % | | | | (33.95 | )% | | | | 24.51 | % | | | | 55.83 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year (000) | | | | $4,100,691 | | | | | $2,937,775 | | | | | $2,511,302 | | | | | $4,578,256 | | | | | $4,149,643 | |
Average net assets (000) | | | | $3,644,718 | | | | | $2,749,757 | | | | | $3,714,344 | | | | | $4,536,203 | | | | | $3,436,278 | |
Ratios to average net assets(c): | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | | 0.69 | % | | | | 0.69 | % | | | | 0.69 | % | | | | 0.69 | % | | | | 0.69 | % |
Expenses before waivers and/or expense reimbursement | | | | 0.69 | % | | | | 0.69 | % | | | | 0.69 | % | | | | 0.69 | % | | | | 0.69 | % |
Net investment income (loss) | | | | (0.13 | )% | | | | (0.02 | )% | | | | (0.23 | )% | | | | (0.36 | )% | | | | (0.15 | )% |
Portfolio turnover rate(d) | | | | 37 | % | | | | 37 | % | | | | 35 | % | | | | 46 | % | | | | 49 | % |
| (a) | Calculated based on average shares outstanding during the year. |
| (b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. |
| (c) | Does not include expenses of the underlying funds in which the Fund invests. |
| (d) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
30
PGIM Jennison Growth Fund
Financial Highlights (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Class R2 Shares | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended September 30, |
| |
| | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 |
Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning of Year | | | | $52.18 | | | | | $41.16 | | | | | $70.81 | | | | | $61.99 | | | | | $43.05 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | | (0.35 | ) | | | | (0.16 | ) | | | | (0.35 | ) | | | | (0.52 | ) | | | | (0.27 | ) |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | | 21.34 | | | | | 12.18 | | | | | (20.57 | ) | | | | 14.65 | | | | | 22.58 | |
Total from investment operations | | | | 20.99 | | | | | 12.02 | | | | | (20.92 | ) | | | | 14.13 | | | | | 22.31 | |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | |
Distributions from net realized gains | | | | (3.70 | ) | | | | (1.00 | ) | | | | (8.73 | ) | | | | (5.31 | ) | | | | (3.37 | ) |
Net asset value, end of year | | | | $69.47 | | | | | $52.18 | | | | | $41.16 | | | | | $70.81 | | | | | $61.99 | |
Total Return(b): | | | | 42.05 | % | | | | 29.86 | % | | | | (34.23 | )% | | | | 24.00 | % | | | | 55.19 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year (000) | | | | $3,173 | | | | | $1,267 | | | | | $4,516 | | | | | $6,175 | | | | | $4,534 | |
Average net assets (000) | | | | $2,137 | | | | | $2,925 | | | | | $5,804 | | | | | $5,521 | | | | | $3,663 | |
Ratios to average net assets(c): | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | | 1.10 | % | | | | 1.10 | % | | | | 1.10 | % | | | | 1.10 | % | | | | 1.10 | % |
Expenses before waivers and/or expense reimbursement | | | | 1.40 | % | | | | 1.34 | % | | | | 1.21 | % | | | | 1.24 | % | | | | 1.45 | % |
Net investment income (loss) | | | | (0.55 | )% | | | | (0.37 | )% | | | | (0.63 | )% | | | | (0.78 | )% | | | | (0.56 | )% |
Portfolio turnover rate(d) | | | | 37 | % | | | | 37 | % | | | | 35 | % | | | | 46 | % | | | | 49 | % |
| (a) | Calculated based on average shares outstanding during the year. |
| (b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. |
| (c) | Does not include expenses of the underlying funds in which the Fund invests. |
| (d) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Jennison Growth Fund 31
PGIM Jennison Growth Fund
Financial Highlights (continued)
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Class R4 Shares | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Year Ended September 30, | |
| | |
| | | | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning of Year | | | | | $53.13 | | | | $41.78 | | | | $71.59 | | | | $62.48 | | | | $43.26 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | | | (0.18 | ) | | | (0.08 | ) | | | (0.22 | ) | | | (0.37 | ) | | | (0.15 | ) |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | | | 21.73 | | | | 12.43 | | | | (20.86 | ) | | | 14.79 | | | | 22.74 | |
Total from investment operations | | | | | 21.55 | | | | 12.35 | | | | (21.08 | ) | | | 14.42 | | | | 22.59 | |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | | | |
Distributions from net realized gains | | | | | (3.70 | ) | | | (1.00 | ) | | | (8.73 | ) | | | (5.31 | ) | | | (3.37 | ) |
Net asset value, end of year | | | | | $70.98 | | | | $53.13 | | | | $41.78 | | | | $71.59 | | | | $62.48 | |
Total Return(b): | | | | | 42.42 | % | | | 30.16 | % | | | (34.07 | )% | | | 24.30 | % | | | 55.59 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year (000) | | | | | $22,035 | | | | $15,780 | | | | $16,676 | | | | $27,267 | | | | $6,840 | |
Average net assets (000) | | | | | $19,336 | | | | $15,562 | | | | $22,892 | | | | $11,773 | | | | $4,883 | |
Ratios to average net assets(c): | | | | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | | | 0.85 | % | | | 0.85 | % | | | 0.85 | % | | | 0.85 | % | | | 0.85 | % |
Expenses before waivers and/or expense reimbursement | | | | | 0.86 | % | | | 0.87 | % | | | 0.88 | % | | | 0.85 | % | | | 1.12 | % |
Net investment income (loss) | | | | | (0.29 | )% | | | (0.17 | )% | | | (0.39 | )% | | | (0.52 | )% | | | (0.31 | )% |
Portfolio turnover rate(d) | | | | | 37 | % | | | 37 | % | | | 35 | % | | | 46 | % | | | 49 | % |
| (a) | Calculated based on average shares outstanding during the year. |
| (b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. |
| (c) | Does not include expenses of the underlying funds in which the Fund invests. |
| (d) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
32
PGIM Jennison Growth Fund
Financial Highlights (continued)
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Year Ended September 30, | |
| | |
| | | | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning of Year | | | | | $54.02 | | | | $42.36 | | | | $72.29 | | | | $62.87 | | | | $43.41 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | | | (0.01 | ) | | | 0.04 | (b) | | | (0.06 | ) | | | (0.18 | ) | | | (0.02 | ) |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | | | 22.15 | | | | 12.62 | | | | (21.14 | ) | | | 14.91 | | | | 22.85 | |
Total from investment operations | | | | | 22.14 | | | | 12.66 | | | | (21.20 | ) | | | 14.73 | | | | 22.83 | |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | | | |
Distributions from net realized gains | | | | | (3.70 | ) | | | (1.00 | ) | | | (8.73 | ) | | | (5.31 | ) | | | (3.37 | ) |
Net asset value, end of year | | | | | $72.46 | | | | $54.02 | | | | $42.36 | | | | $72.29 | | | | $62.87 | |
Total Return(c): | | | | | 42.84 | % | | | 30.49 | % | | | (33.88 | )% | | | 24.64 | % | | | 55.98 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year (000) | | | | | $2,115,601 | | | | $1,511,727 | | | | $977,130 | | | | $1,223,868 | | | | $609,443 | |
Average net assets (000) | | | | | $1,895,990 | | | | $1,216,561 | | | | $1,183,306 | | | | $951,504 | | | | $427,945 | |
Ratios to average net assets(d): | | | | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | | | 0.58 | % | | | 0.58 | % | | | 0.58 | % | | | 0.57 | % | | | 0.58 | % |
Expenses before waivers and/or expense reimbursement | | | | | 0.58 | % | | | 0.58 | % | | | 0.58 | % | | | 0.57 | % | | | 0.58 | % |
Net investment income (loss) | | | | | (0.01 | )% | | | 0.09 | % | | | (0.10 | )% | | | (0.26 | )% | | | (0.04 | )% |
Portfolio turnover rate(e) | | | | | 37 | % | | | 37 | % | | | 35 | % | | | 46 | % | | | 49 | % |
| (a) | Calculated based on average shares outstanding during the year. |
| (b) | The per share amount of net investment income (loss) does not directly correlate to the amounts reported in the Statement of Operations due to class specific expenses. |
| (c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. |
| (d) | Does not include expenses of the underlying funds in which the Fund invests. |
| (e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Jennison Growth Fund 33
Notes to Financial Statements
The Prudential Investment Portfolios, Inc. (the “Registered Investment Company” or “RIC”) is registered under the Investment Company Act of 1940, as amended (“1940 Act”), as an open-end management investment company. The RIC is organized as a Maryland Corporation. These financial statements relate to the following series of the RIC: PGIM Jennison Focused Value Fund and PGIM Jennison Growth Fund (each, a “Fund” and collectively, the “Funds”). The Funds are classified as diversified funds for purposes of the 1940 Act..
| | |
|
| |
| Fund | | Investment Objective(s) |
|
PGIM Jennison Focused Value Fund (“Jennison Focused Value”) | | To achieve long-term growth of capital |
PGIM Jennison Growth Fund (“Jennison Growth”) | | To achieve long-term growth of capital |
|
The Funds follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 946 Financial Services — Investment Companies. The following is a summary of significant accounting policies followed by the Funds in the preparation of its financial statements. The policies conform to U.S. generally accepted accounting principles (“GAAP”). The Funds consistently follow such policies in the preparation of their financial statements.
Securities Valuation: The Funds hold securities and other assets and liabilities that are fair valued as of the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. As described in further detail below, the Funds’ investments are valued daily based on a number of factors, including the type of investment and whether market quotations are readily available. The RIC’s Board of Directors (the “Board”) has approved the Funds’ valuation policies and procedures for security valuation and designated PGIM Investments LLC (“PGIM Investments” or the “Manager”) as the “Valuation Designee,” as defined by Rule 2a-5(b) under the 1940 Act, to perform the fair value determination relating to all Funds investments. Pursuant to the Board’s oversight, the Valuation Designee has established a Valuation Committee to perform the duties and responsibilities of the Valuation Designee under Rule 2a-5. The valuation procedures permit the 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 representative of fair value. Fair value is the estimated price that would be
34
received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date.
For the fiscal reporting year-end, securities and other assets and liabilities were fair valued at the close of the last U.S. business day. Trading in certain foreign securities may occur when the NYSE is closed (including weekends and holidays). Because such foreign securities trade in markets that are open on weekends and U.S. holidays, the values of some of the Funds’ foreign investments may change on days when investors cannot purchase or redeem Fund shares.
Various inputs determine how the Funds’ investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the Schedule of Investments and referred to herein as the “fair value hierarchy” in accordance with FASB ASC Topic 820 Fair Value Measurement.
Common or preferred stocks, exchange-traded funds (“ETFs”) and derivative instruments, if applicable, 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 a 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.
Foreign equities traded on foreign securities exchanges are generally 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 up to the time each Fund is valued. 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 stock valuation policies discussed above.
Investments in open-end funds (other than ETFs) 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 policies and procedures approved by the Board. In the event that unobservable inputs are used when determining such valuations, the securities will be
35
Notes to Financial Statements (continued)
classified as Level 3 in the fair value hierarchy. Altering one or more unobservable inputs may result in a significant change to a Level 3 security’s fair value measurement.
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; and any available analyst media or other reports or information deemed reliable by the Valuation Designee 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 unaffiliated mutual funds to calculate their net asset values.
Foreign Currency Translation: The books and records of the Funds 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 exchange rate as of the valuation date;
(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 Funds are presented at the foreign exchange rates and market values at the close of the period, the Funds do 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 Funds do 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 unrealized and realized foreign currency gains (losses) are included in the reported net change in unrealized appreciation (depreciation) on investments and net realized gains (losses) on investment transactions on the Statements of Operations.
Additionally, net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from the disposition of holdings of foreign currencies, currency gains (losses) realized between the trade and settlement dates on investment transactions, and the difference between the amounts of interest, dividends and foreign withholding taxes recorded on the Funds’ books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) arise from valuing foreign
36
currency denominated assets and liabilities (other than investments) at period end exchange rates.
Master Netting Arrangements: The RIC, on behalf of each Fund, 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 all or a portion of each Fund. A master netting arrangement between each Fund and the counterparty permits each Fund to offset amounts payable by each Fund to the same counterparty against amounts to be received and by the receipt of collateral from the counterparty by each Fund to cover the Funds’ 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.
Securities Lending: The Funds lend their 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. In the event of significant appreciation in value of the securities on loan on the last business day of the reporting period, the financial statements may reflect a collateral value that is less than the market value of the loaned securities. Such shortfall is remedied as described above. Loans are subject to termination at the option of the borrower or the Funds. Upon termination of the loan, the borrower will return to the Funds securities identical to the loaned securities. The remaining open loans of the securities lending transactions are considered overnight and continuous. Should the borrower of the securities fail financially, the Funds have the right to repurchase the securities in the open market using the collateral.
The Funds recognize income, net of any rebate and securities lending agent fees, for lending their 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, which are reflected in interest income or unaffiliated dividend income based on the nature of the payment on the Statement of Operations. The Funds also continue to recognize any unrealized gain (loss) in the market price of the securities loaned and on the change in the 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 in the Statement of Operations.
Equity and Mortgage Real Estate Investment Trusts (collectively “REITs”): The Funds invested 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
37
Notes to Financial Statements (continued)
during the period is estimated to be dividend income, capital gain or return of capital and recorded accordingly. When material, 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, or for certain foreign securities, when the Funds become aware of such dividends. Expenses are recorded on an accrual basis, which may require the use of certain estimates by management that may differ from actual expense amounts. Net investment income or loss (other than class specific expenses and waivers, which are allocated as noted below) 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. Class specific expenses and waivers, where applicable, are charged to the respective share classes. Such class specific expenses and waivers include distribution fees and distribution fee waivers, shareholder servicing fees, transfer agent’s fees and expenses, registration fees and fee waivers and/or expense reimbursements, as applicable.
Taxes: It is each Fund’s policy to continue to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net investment income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required. Withholding taxes on foreign dividends, interest and capital gains, if any, are recorded, net of reclaimable amounts, at the time the related income is earned.
Dividends and Distributions: Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from GAAP, are recorded on the ex-date. Permanent book/tax differences relating to income and gain (loss) are reclassified between total distributable earnings (loss) and paid-in capital in excess of par, as appropriate. The chart below sets forth the expected frequency of dividend and capital gains distributions to shareholders. Various factors may impact the frequency of dividend distributions to shareholders, including but not limited to adverse market conditions or portfolio holding-specific events.
| | |
| | |
| Expected Distribution Schedule to Shareholders* | | Frequency |
Net Investment Income | | Annually |
Short-Term Capital Gains | | Annually |
Long-Term Capital Gains | | Annually |
| * | Under certain circumstances, each Fund may make more than one distribution of short-term and/or long-term capital gains during a fiscal year. |
38
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 those estimates.
The RIC, on behalf of each Fund, has entered into management agreements with the Manager pursuant to which it has responsibility for all investment advisory services, including supervision of the subadviser’s performance of such services, and for rendering administrative services.
The Manager has entered into subadvisory agreements with Jennison Associates LLC (“Jennison” or the “subadviser”). The Manager pays for the services of Jennison.
Fees payable under the management agreement are computed daily and paid monthly. For the reporting period ended September 30, 2024, the contractual and effective management fee rates were as follows:
| | | | | | | | | | |
| | | | | | |
| Fund | | | | Management Fee | | | | Effective Management Fee, before any waiver and/or expense reimbursements | | |
Jennison Focused Value | | | | 0.60% of average daily net assets up | | | | 0.60% | | |
| | | | to and including $300 million; | | | | | | |
| | | | 0.575% of average daily net assets | | | | | | |
| | | | | over $300 million. | | | | | | |
Jennison Growth | | | | 0.60% of average daily net assets up | | | | 0.56 | | |
| | | | to and including $300 million; | | | | | | |
| | | | 0.575% on next $2.7 billion of | | | | | | |
| | | | average daily net assets | | | | | | |
| | | | 0.55% on the average daily net assets | | | | | | |
| | | | | over $3 billion | | | | | | |
The Manager has contractually agreed, through January 31, 2026, to limit certain operating expenses and/or to limit total annual operating expenses after fee waivers and/or expense reimbursements. The contractual waiver and expense limitation exclude interest, brokerage, taxes (such as income and foreign withholding taxes, stamp duty and deferred tax expenses), acquired fund fees and expenses, extraordinary expenses, and certain other Fund expenses such as dividend and interest expense and broker charges on short sales.
Where applicable, the Manager agrees to waive management fees or shared operating expenses on any share class to the same extent that it waives such expenses on any other share class. In addition, total annual fund operating expenses for Class R6 shares will not exceed total annual fund operating expenses for Class Z shares. Fees and/or expenses waived and/or reimbursed by the Manager for the purpose of preventing the expenses from exceeding a certain expense ratio limit may be recouped by the Manager within the same fiscal year during which such waiver and/or reimbursement is made if such recoupment can
39
Notes to Financial Statements (continued)
be realized without exceeding the expense limit in effect at the time of the waiver/reimbursement and/or recoupment for that fiscal year, as applicable. The expense limitations attributable to each class are as follows:
| | | | | |
| | |
| Fund | | Class Expense
Limitation |
Jennison Focused Value - Class A | | | | — | % |
Jennison Focused Value - Class C | | | | — | |
Jennison Focused Value - Class R | | | | 1.53 | * |
Jennison Focused Value - Class Z | | | | 0.75 | |
Jennison Focused Value - Class R6 | | | | 0.75 | |
| |
Jennison Growth - Class A | | | | — | |
Jennison Growth - Class C | | | | — | |
Jennison Growth - Class R | | | | — | |
Jennison Growth - Class Z | | | | — | |
Jennison Growth - Class R2 | | | | 1.10 | * |
Jennison Growth - Class R4 | | | | 0.85 | * |
Jennison Growth - Class R6 | | | | 0.60 | |
*Expense limitation applicable only to blue sky fees, shareholder service fee, and transfer agency expenses (including sub-transfer agency and networking fees).
The RIC, on behalf of each Fund, has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class A, Class C, Class R, Class Z, Class R2, Class R4 and Class R6 shares of each Fund, as applicable. Each Fund compensates PIMS for distributing and servicing each Fund’s Class A, Class C, Class R and Class R2 shares, as applicable, pursuant to the plans of distribution (the “Distribution Plans”), regardless of expenses actually incurred by PIMS.
Pursuant to the Distribution Plans, each Fund compensates PIMS for distribution related activities at an annual rate based on average daily net assets per class. PIMS has contractually agreed through January 31, 2026 to limit such fees on certain classes based on the average daily net assets. The distribution fees are accrued daily and payable monthly.
The Jennison Growth Fund has adopted a Shareholder Services Plan with respect to Class R2 and Class R4 shares. Under the terms of the Shareholder Services Plan, Class R2 and Class R4 shares are authorized to compensate Prudential Mutual Fund Services LLC (“PMFS”), its affiliates or third-party service providers for services rendered to the shareholders of such Class R2 or Class R4 shares. The shareholder service fee is accrued daily and paid monthly, as applicable.
40
Each Fund’s annual gross and net distribution rates, where applicable, are as follows:
| | | | | | |
| | | | |
| Fund | | Gross Distribution Fee | | Net Distribution Fee | | Shareholder Service Fee |
Jennison Focused Value - Class A | | 0.30% | | 0.30% | | N/A% |
Jennison Focused Value - Class C | | 1.00 | | 1.00 | | N/A |
Jennison Focused Value - Class R | | 0.75 | | 0.50 | | N/A |
Jennison Focused Value - Class Z | | N/A | | N/A | | N/A |
Jennison Focused Value - Class R6 | | N/A | | N/A | | N/A |
Jennison Growth - Class A | | 0.30 | | 0.30 | | N/A |
Jennison Growth - Class C | | 1.00 | | 1.00 | | N/A |
Jennison Growth - Class R | | 0.75 | | 0.50 | | N/A |
Jennison Growth - Class Z | | N/A | | N/A | | N/A |
Jennison Growth - Class R2 | | 0.25 | | 0.25 | | 0.10 |
Jennison Growth - Class R4 | | N/A | | N/A | | 0.10 |
Jennison Growth - Class R6 | | N/A | | N/A | | N/A |
The RIC, on behalf of each Fund, has entered into brokerage commission recapture agreements with certain registered broker-dealers. Under the brokerage commission recapture program, a portion of the commission is returned to the Fund on whose behalf the trades were made. Commission recapture is paid solely to the Fund generating the applicable trades. Such amounts are included within realized gain (loss) on investment transactions presented in the Statement of Operations. For the reporting period ended September 30, 2024, brokerage commissions recaptured under these agreements was as follows:
| | |
| | |
| Fund | | Amount |
Jennison Focused Value | | $ 2,284 |
Jennison Growth | | 95,180 |
For the year ended September 30, 2024, PIMS received front-end sales charges (“FESL”) resulting from sales of certain class shares and contingent deferred sales charges (“CDSC”) imposed upon redemptions by certain shareholders. From these fees, PIMS paid such sales charges to broker-dealers, who in turn paid commissions to salespersons and incurred other distribution costs. The sales charges are as follows where applicable:
| | | | | | | | |
| | | |
| Fund | | FESL | | | CDSC | |
Jennison Focused Value - Class A | | $ | 53,208 | | | $ | 1 | |
Jennison Focused Value - Class C | | | — | | | | 211 | |
Jennison Growth - Class A | | | 1,069,161 | | | | 1,024 | |
Jennison Growth - Class C | | | — | | | | 7,255 | |
PGIM Investments, PIMS, PMFS and Jennison are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
41
Notes to Financial Statements (continued)
| 4. | Other Transactions with Affiliates |
PMFS, an affiliate of PGIM Investments and an indirect, wholly-owned subsidiary of Prudential, serves as the Funds’ transfer agent and shareholder servicing agent. Transfer agent’s and shareholder servicing agent’s fees and expenses in the Statement of Operations include certain out-of-pocket expenses paid to non-affiliates, where applicable.
The Funds may invest their overnight sweep cash in the PGIM Core Government Money Market Fund (the “Core Government Fund”), a series of the Prudential Government Money Market Fund, Inc., and their securities lending cash collateral in the PGIM Institutional Money Market Fund (the “Money Market Fund”), a series of Prudential Investment Portfolios 2, each registered under the 1940 Act and managed by PGIM Investments. PGIM Investments and/or its affiliates are paid fees or reimbursed for providing their services to the Core Government Fund and the Money Market Fund. In addition to the realized and unrealized gains on investments in the Core Government Fund and the Money Market Fund, earnings from such investments are disclosed on the Statement of Operations as “Affiliated dividend income” and “Affiliated income from securities lending, net”, respectively.
The Funds 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, subject to certain conditions, 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/trustees, and/or common officers. For the year ended September 30, 2024, no Rule 17a-7 transactions were entered into by the Funds.
The aggregate cost of purchases and proceeds from sales of portfolio securities (excluding short-term investments and U.S. Government securities) for the reporting period ended September 30, 2024, were as follows:
| | | | | | | | |
| | | |
| Fund | | Cost of
Purchases | | | Proceeds from Sales | |
| | |
Jennison Focused Value | | $ | 84,667,220 | | | $ | 99,504,442 | |
| | |
Jennison Growth | | | 2,800,957,780 | | | | 3,100,659,937 | |
A summary of the cost of purchases and proceeds from sales of shares of affiliated mutual funds for the year ended September 30, 2024, is presented as follows:
42
| | | | | | | | | | | | | | | | |
| | | | | | | | |
Value,
Beginning of
Year | | Cost of
Purchases | | Proceeds
from Sales | | Change in
Unrealized
Gain
(Loss) | | Realized
Gain
(Loss) | | Value, End of Year | | Shares,
End
of Year | | Income | |
| |
Short-Term Investments - Affiliated Mutual Funds: | | | | |
| |
PGIM Core Government Money Market Fund (7-day effective yield 5.140%)(1)(wb) | | | | |
| $1,034,350 | | $54,933,409 | | $49,727,536 | | $— | | $ — | | $6,240,223 | | 6,240,223 | | | $299,415 | |
| |
PGIM Institutional Money Market Fund (7-day effective yield 5.160%)(1)(b)(wb) | | | | |
| 3,125,747 | | 6,514,940 | | 9,641,289 | | — | | 602 | | — | | — | | | 151 | (2) |
| $4,160,097 | | $61,448,349 | | $59,368,825 | | $— | | $602 | | $6,240,223 | | | | | $299,566 | |
Jennison Growth: | | | | | | | | | | | | |
| | | | | | | | |
Value,
Beginning
of Year | | Cost of
Purchases | | Proceeds
from Sales | | Change in
Unrealized
Gain
(Loss) | | Realized
Gain
(Loss) | | Value,
End of Year | | Shares,
End
of Year | | Income | |
|
Short-Term Investments - Affiliated Mutual Funds: | |
|
PGIM Core Government Money Market Fund (7-day effective yield 5.140%)(1)(wb) | |
| $ 22,686,269 | | $1,797,998,861 | | $1,775,520,762 | | $ — | | $ — | | $45,164,368 | | 45,164,368 | | | $2,289,764 | |
|
PGIM Institutional Money Market Fund (7-day effective yield 5.160%)(1)(b)(wb) | |
| 212,270,711 | | 624,937,290 | | 837,210,009 | | (139,246) | | 141,254 | | — | | — | | | 434,343 | (2) |
| $234,956,980 | | $2,422,936,151 | | $2,612,730,771 | | $(139,246) | | $141,254 | | $45,164,368 | | | | | $2,724,107 | |
| (1) | The Fund did not have any capital gain distributions during the reporting period. |
| (2) | The amount, or a portion thereof, represents the affiliated securities lending income shown on the Statement of Operations. |
| (b) | Represents security, or portion thereof, purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
| (wb) | Represents an investment in a Fund affiliated with the Manager. |
| 6. | Distributions and Tax Information |
Distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from GAAP, are recorded on the ex-date.
For the year ended September 30, 2024, the tax character of dividends paid as reflected in the Statement of Changes in Net Assets were as follows:
| | | | | | | | | | | | |
| | | | | |
| Fund | | Ordinary
Income | | Long-Term
Capital Gains | | Tax Return
of Capital | | Total Dividends
and Distributions |
| Jennison Focused Value | | $ | 1,888,278 | | | $ 15,292,648 | | $— | | | $ 17,180,926 | |
| Jennison Growth | | | — | | | 450,622,280 | | — | | | 450,622,280 | |
43
Notes to Financial Statements (continued)
For the year ended September 30, 2023, the tax character of dividends paid as reflected in the Statement of Changes in Net Assets were as follows:
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| Fund | | Ordinary
Income | | Long-Term
Capital Gains | | Tax Return
of Capital | | Total Dividends
and Distributions |
| Jennison Focused Value | | | | $1,857,054 | | | | | $ 4,168,667 | | | | | $— | | | | | $ 6,025,721 | |
| Jennison Growth | | | | — | | | | | 124,347,796 | | | | | — | | | | | 124,347,796 | |
For the year ended September 30, 2024, the Funds indicated below had the following amounts of accumulated undistributed earnings on a tax basis:
| | | | | | | | | | | | |
| | | | |
| Fund | | Undistributed
Ordinary Income | | | | | Undistributed
Long-Term
Capital Gains |
Jennison Focused Value | | | $4,589,963 | | | | | | | $ | 14,971,815 | |
Jennison Growth | | | — | | | | | | | | 898,104,706 | |
The United States federal income tax basis of the Funds’ investments and the net unrealized appreciation as of September 30, 2024 were as follows:
| | | | | | | | | | | | | | | | |
| | | | | |
| Fund | | Tax Basis | | | Gross Unrealized
Appreciation | | | Gross
Unrealized
Depreciation | | | Net Unrealized
Appreciation | |
| | | | |
Jennison Focused Value | | $ | 152,300,730 | | | $ | 82,746,846 | | | $ | (2,176,445 | ) | | $ | 80,570,401 | |
| | | | |
Jennison Growth | | | 3,771,230,281 | | | | 4,971,355,527 | | | | (143,328,894 | ) | | | 4,828,026,633 | |
The difference between GAAP and tax basis was primarily attributable to deferred losses on wash sales.
For federal income tax purposes, the following Funds had an approximated capital loss carryforward as of September 30, 2024 which can be carried forward for an unlimited period. No capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such losses.
| | | | | | |
| | | | |
| Fund | | Capital Loss
Carryforward | | | | Capital Loss
Carryforward Utilized |
Jennison Focused Value | | $— | | | | $— |
Jennison Growth | | — | | | | — |
The Funds indicated below elected to treat the below approximated losses as having been incurred in the following fiscal year (September 30, 2025).
| | | | | | | | |
| | | | |
| Fund | | Qualified Late-Year
Losses | | | | | Post-October
Capital Losses |
Jennison Growth | | $3,419,000 | | | | | | $— |
The Manager has analyzed the 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
44
required in the Funds’ financial statements for the current reporting period. Since tax authorities can examine previously filed tax returns, the Funds’ U.S. federal and state tax returns for each of the four fiscal years up to the most recent fiscal year ended September 30, 2024 are subject to such review.
The Jennison Focused Value Fund offers Class A, Class C, Class R, Class Z and Class R6 shares. The Jennison Growth Fund offers Class A, Class C, Class R, Class Z, Class R2, Class R4 and Class R6 shares. Class A shares are sold with a maximum front-end sales charge of 5.50%. Investors who purchase $1 million or more of Class A shares and sell these shares within 12 months of purchase are subject to a CDSC of 1%, although they are not subject to an initial sales charge. The Class A CDSC is waived for certain retirement and/or benefit plans. A special exchange privilege is also available for shareholders who qualified to purchase Class A shares at net asset value. Class C shares are sold with a CDSC of 1% on sales made within 12 months of purchase. Class C shares will automatically convert to Class A shares on a monthly basis approximately eight years (ten years prior to January 22, 2021) after purchase. Class R, Class Z, Class R2, Class R4 and Class R6 shares are not subject to any sales or redemption charges and are available exclusively for sale to a limited group of investors.
Under certain circumstances, an exchange may be made from specified share classes of each Fund to one or more other share classes of each Fund as presented in the table of transactions in shares of beneficial interest, below.
The RIC is authorized to issue 6,625,000,000 shares of capital stock, $0.001 par value per share. The authorized shares of the Funds are currently classified and designated as follows:
| | | | | |
| | |
| Fund | | Number of Shares |
Jennison Focused Value - Class A | | | | 100,000,000 | |
Jennison Focused Value - Class B | | | | 2,000,000 | |
Jennison Focused Value - Class C | | | | 25,000,000 | |
Jennison Focused Value - Class R | | | | 200,000,000 | |
Jennison Focused Value - Class Z | | | | 325,000,000 | |
Jennison Focused Value - Class T | | | | 50,000,000 | |
Jennison Focused Value - Class R6 | | | | 320,000,000 | |
Jennison Growth - Class A | | | | 125,000,000 | |
Jennison Growth - Class B | | | | 2,000,000 | |
Jennison Growth - Class C | | | | 25,000,000 | |
Jennison Growth - Class R | | | | 220,000,000 | |
Jennison Growth - Class Z | | | | 825,000,000 | |
Jennison Growth - Class T | | | | 50,000,000 | |
Jennison Growth - Class R2 | | | | 125,000,000 | |
Jennison Growth - Class R4 | | | | 250,000,000 | |
Jennison Growth - Class R6 | | | | 275,000,000 | |
45
Notes to Financial Statements (continued)
The Funds currently do not have any Class B or Class T shares outstanding.
As of September 30, 2024, Prudential, through its affiliated entities, including affiliated funds (if applicable), owned shares of each Fund as follows:
| | | | | | | | |
| | | | |
| Fund | | Number of Shares | | | | | Percentage of
Outstanding Shares |
Jennison Growth–Class Z | | 30,002 | | | | | | 0.1% |
At the reporting period end, the number of shareholders holding greater than 5% of the Funds are as follows:
| | | | | | | | | | | | | | | |
| | | | |
| Fund | | Number of Shareholders | | | | Percentage of Outstanding Shares |
Affiliated: | | | | | | | | | | | | | | | |
Jennison Focused Value | | | | — | | | | | | | | | | — | % |
Jennison Growth | | | | — | | | | | | | | | | — | |
Unaffiliated: | | | | | | | | | | | | | | | |
Jennison Focused Value | | | | 6 | | | | | | | | | | 64.1 | |
Jennison Growth | | | | 7 | | | | | | | | | | 69.2 | |
Transactions in shares of common stock were as follows:
Jennison Focused Value:
| | | | | | | | |
| | | |
| Share Class | | Shares | | | Amount | |
| | |
Class A | | | | | | | | |
Year ended September 30, 2024: | | | | | | | | |
Shares sold | | | 273,417 | | | $ | 5,254,193 | |
Shares issued in reinvestment of dividends and distributions | | | 823,745 | | | | 14,086,048 | |
Shares purchased | | | (1,239,331 | ) | | | (23,428,493 | ) |
Net increase (decrease) in shares outstanding before conversion | | | (142,169 | ) | | | (4,088,252 | ) |
Shares issued upon conversion from other share class(es) | | | 22,609 | | | | 427,143 | |
Shares purchased upon conversion into other share class(es) | | | (28,350 | ) | | | (562,116 | ) |
Net increase (decrease) in shares outstanding | | | (147,910 | ) | | $ | (4,223,225 | ) |
| | |
Year ended September 30, 2023: | | | | | | | | |
Shares sold | | | 320,900 | | | $ | 5,428,077 | |
Shares issued in reinvestment of dividends and distributions | | | 292,848 | | | | 4,823,213 | |
Shares purchased | | | (1,162,627 | ) | | | (19,633,179 | ) |
Net increase (decrease) in shares outstanding before conversion | | | (548,879 | ) | | | (9,381,889 | ) |
Shares issued upon conversion from other share class(es) | | | 46,038 | | | | 778,770 | |
Shares purchased upon conversion into other share class(es) | | | (58,694 | ) | | | (994,868 | ) |
Net increase (decrease) in shares outstanding | | | (561,535 | ) | | $ | (9,597,987 | ) |
46
Jennison Focused Value (cont’d.):
| | | | | | | | |
| | | |
| Share Class | | Shares | | | Amount | |
| | |
Class C | | | | | | | | |
| | |
Year ended September 30, 2024: | | | | | | | | |
Shares sold | | | 22,015 | | | $ | 305,910 | |
Shares issued in reinvestment of dividends and distributions | | | 30,858 | | | | 371,534 | |
Shares purchased | | | (55,791 | ) | | | (750,375 | ) |
Net increase (decrease) in shares outstanding before conversion | | | (2,918 | ) | | | (72,931 | ) |
Shares purchased upon conversion into other share class(es) | | | (31,616 | ) | | | (421,347 | ) |
Net increase (decrease) in shares outstanding | | | (34,534 | ) | | $ | (494,278 | ) |
| | |
Year ended September 30, 2023: | | | | | | | | |
Shares sold | | | 40,938 | | | $ | 506,063 | |
Shares issued in reinvestment of dividends and distributions | | | 10,731 | | | | 129,521 | |
Shares purchased | | | (51,541 | ) | | | (632,332 | ) |
Net increase (decrease) in shares outstanding before conversion | | | 128 | | | | 3,252 | |
Shares purchased upon conversion into other share class(es) | | | (62,899 | ) | | | (777,869 | ) |
Net increase (decrease) in shares outstanding | | | (62,771 | ) | | $ | (774,617 | ) |
| | |
Class R | | | | | | | | |
Year ended September 30, 2024: | | | | | | | | |
Shares sold | | | 860 | | | $ | 13,073 | |
Shares issued in reinvestment of dividends and distributions | | | 1,917 | | | | 26,344 | |
Shares purchased | | | (5,082 | ) | | | (80,398 | ) |
Net increase (decrease) in shares outstanding | | | (2,305 | ) | | $ | (40,981 | ) |
| | |
Year ended September 30, 2023: | | | | | | | | |
Shares sold | | | 3,341 | | | $ | 46,264 | |
Shares issued in reinvestment of dividends and distributions | | | 1,244 | | | | 16,840 | |
Shares purchased | | | (22,683 | ) | | | (310,005 | ) |
Net increase (decrease) in shares outstanding | | | (18,098 | ) | | $ | (246,901 | ) |
| | |
Class Z | | | | | | | | |
Year ended September 30, 2024: | | | | | | | | |
Shares sold | | | 918,635 | | | $ | 18,906,601 | |
Shares issued in reinvestment of dividends and distributions | | | 118,137 | | | | 2,158,355 | |
Shares purchased | | | (581,911 | ) | | | (12,232,344 | ) |
Net increase (decrease) in shares outstanding before conversion | | | 454,861 | | | | 8,832,612 | |
Shares issued upon conversion from other share class(es) | | | 21,145 | | | | 445,078 | |
Shares purchased upon conversion into other share class(es) | | | (1,013 | ) | | | (21,869 | ) |
Net increase (decrease) in shares outstanding | | | 474,993 | | | $ | 9,255,821 | |
47
Notes to Financial Statements (continued)
Jennison Focused Value (cont’d.):
| | | | | | | | |
| | | |
| Share Class | | Shares | | | Amount | |
| | |
Year ended September 30, 2023: | | | | | | | | |
Shares sold | | | 210,124 | | | $ | 3,913,428 | |
Shares issued in reinvestment of dividends and distributions | | | 46,012 | | | | 804,292 | |
Shares purchased | | | (479,069 | ) | | | (8,514,930 | ) |
Net increase (decrease) in shares outstanding before conversion | | | (222,933 | ) | | | (3,797,210 | ) |
Shares issued upon conversion from other share class(es) | | | 54,096 | | | | 973,815 | |
Shares purchased upon conversion into other share class(es) | | | (12,498 | ) | | | (240,248 | ) |
Net increase (decrease) in shares outstanding | | | (181,335 | ) | | $ | (3,063,643 | ) |
| | |
Class R6 | | | | | | | | |
Year ended September 30, 2024: | | | | | | | | |
Shares sold | | | 115,565 | | | $ | 2,451,787 | |
Shares issued in reinvestment of dividends and distributions | | | 17,960 | | | | 326,880 | |
Shares purchased | | | (58,007 | ) | | | (1,236,431 | ) |
Net increase (decrease) in shares outstanding before conversion | | | 75,518 | | | | 1,542,236 | |
Shares issued upon conversion from other share class(es) | | | 6,174 | | | | 134,568 | |
Shares purchased upon conversion into other share class(es) | | | (76 | ) | | | (1,457 | ) |
Net increase (decrease) in shares outstanding | | | 81,616 | | | $ | 1,675,347 | |
| | |
Year ended September 30, 2023: | | | | | | | | |
Shares sold | | | 46,369 | | | $ | 826,313 | |
Shares issued in reinvestment of dividends and distributions | | | 9,664 | | | | 168,349 | |
Shares purchased | | | (191,372 | ) | | | (3,534,671 | ) |
Net increase (decrease) in shares outstanding before conversion | | | (135,339 | ) | | | (2,540,009 | ) |
Shares issued upon conversion from other share class(es) | | | 14,877 | | | | 283,301 | |
Shares purchased upon conversion into other share class(es) | | | (1,237 | ) | | | (22,901 | ) |
Net increase (decrease) in shares outstanding | | | (121,699 | ) | | $ | (2,279,609 | ) |
48
Jennison Growth:
| | | | | | | | |
| | | |
| Share Class | | Shares | | | Amount | |
| | |
Class A | | | | | | | | |
Year ended September 30, 2024: | | | | | | | | |
Shares sold | | | 1,904,689 | | | $ | 106,821,076 | |
Shares issued in reinvestment of dividends and distributions | | | 2,253,832 | | | | 111,316,740 | |
Shares purchased | | | (4,207,788 | ) | | | (235,046,107 | ) |
Net increase (decrease) in shares outstanding before conversion | | | (49,267 | ) | | | (16,908,291 | ) |
Shares issued upon conversion from other share class(es) | | | 451,949 | | | | 25,656,248 | |
Shares purchased upon conversion into other share class(es) | | | (315,027 | ) | | | (18,071,107 | ) |
Net increase (decrease) in shares outstanding | | | 87,655 | | | $ | (9,323,150 | ) |
| | |
Year ended September 30, 2023: | | | | | | | | |
Shares sold | | | 1,700,644 | | | $ | 72,653,005 | |
Shares issued in reinvestment of dividends and distributions | | | 858,634 | | | | 32,370,492 | |
Shares purchased | | | (5,192,104 | ) | | | (220,403,451 | ) |
Net increase (decrease) in shares outstanding before conversion | | | (2,632,826 | ) | | | (115,379,954 | ) |
Shares issued upon conversion from other share class(es) | | | 345,778 | | | | 14,846,455 | |
Shares purchased upon conversion into other share class(es) | | | (507,516 | ) | | | (22,562,851 | ) |
Net increase (decrease) in shares outstanding | | | (2,794,564 | ) | | $ | (123,096,350 | ) |
| | |
Class C | | | | | | | | |
Year ended September 30, 2024: | | | | | | | | |
Shares sold | | | 457,183 | | | $ | 16,713,258 | |
Shares issued in reinvestment of dividends and distributions | | | 339,791 | | | | 10,971,870 | |
Shares purchased | | | (519,408 | ) | | | (18,814,882 | ) |
Net increase (decrease) in shares outstanding before conversion | | | 277,566 | | | | 8,870,246 | |
Shares purchased upon conversion into other share class(es) | | | (505,399 | ) | | | (18,530,328 | ) |
Net increase (decrease) in shares outstanding | | | (227,833 | ) | | $ | (9,660,082 | ) |
| | |
Year ended September 30, 2023: | | | | | | | | |
Shares sold | | | 399,630 | | | $ | 11,831,360 | |
Shares issued in reinvestment of dividends and distributions | | | 132,693 | | | | 3,414,199 | |
Shares purchased | | | (771,379 | ) | | | (21,716,430 | ) |
Net increase (decrease) in shares outstanding before conversion | | | (239,056 | ) | | | (6,470,871 | ) |
Shares purchased upon conversion into other share class(es) | | | (403,198 | ) | | | (11,774,524 | ) |
Net increase (decrease) in shares outstanding | | | (642,254 | ) | | $ | (18,245,395 | ) |
| | |
Class R | | | | | | | | |
Year ended September 30, 2024: | | | | | | | | |
Shares sold | | | 283,402 | | | $ | 13,078,142 | |
Shares issued in reinvestment of dividends and distributions | | | 553,072 | | | | 21,702,547 | |
Shares purchased | | | (1,646,534 | ) | | | (74,174,611 | ) |
Net increase (decrease) in shares outstanding before conversion | | | (810,060 | ) | | | (39,393,922 | ) |
Shares purchased upon conversion into other share class(es) | | | (677 | ) | | | (28,605 | ) |
Net increase (decrease) in shares outstanding | | | (810,737 | ) | | $ | (39,422,527 | ) |
49
Notes to Financial Statements (continued)
Jennison Growth (cont’d.):
| | | | | | | | |
| | | |
| Share Class | | Shares | | | Amount | |
| | |
Year ended September 30, 2023: | | | | | | | | |
Shares sold | | | 661,303 | | | $ | 20,332,297 | |
Shares issued in reinvestment of dividends and distributions | | | 224,105 | | | | 6,848,640 | |
Shares purchased | | | (1,932,768 | ) | | | (68,255,844 | ) |
Net increase (decrease) in shares outstanding before conversion | | | (1,047,360 | ) | | | (41,074,907 | ) |
Shares purchased upon conversion into other share class(es) | | | (481 | ) | | | (15,871 | ) |
Net increase (decrease) in shares outstanding | | | (1,047,841 | ) | | $ | (41,090,778 | ) |
| | |
Class Z | | | | | | | | |
Year ended September 30, 2024: | | | | | | | | |
Shares sold | | | 17,092,087 | | | $ | 1,107,801,204 | |
Shares issued in reinvestment of dividends and distributions | | | 3,281,810 | | | | 185,619,154 | |
Shares purchased | | | (17,958,062 | ) | | | (1,152,058,409 | ) |
Net increase (decrease) in shares outstanding before conversion | | | 2,415,835 | | | | 141,361,949 | |
Shares issued upon conversion from other share class(es) | | | 236,527 | | | | 15,357,463 | |
Shares purchased upon conversion into other share class(es) | | | (331,706 | ) | | | (22,279,687 | ) |
Net increase (decrease) in shares outstanding | | | 2,320,656 | | | $ | 134,439,725 | |
| | |
Year ended September 30, 2023: | | | | | | | | |
Shares sold | | | 11,971,624 | | | $ | 581,284,236 | |
Shares issued in reinvestment of dividends and distributions | | | 1,250,305 | | | | 53,325,489 | |
Shares purchased | | | (18,130,588 | ) | | | (864,325,328 | ) |
Net increase (decrease) in shares outstanding before conversion | | | (4,908,659 | ) | | | (229,715,603 | ) |
Shares issued upon conversion from other share class(es) | | | 316,262 | | | | 15,128,984 | |
Shares purchased upon conversion into other share class(es) | | | (270,350 | ) | | | (13,509,114 | ) |
Net increase (decrease) in shares outstanding | | | (4,862,747 | ) | | $ | (228,095,733 | ) |
| | |
Class R2 | | | | | | | | |
Year ended September 30, 2024: | | | | | | | | |
Shares sold | | | 25,720 | | | $ | 1,682,364 | |
Shares issued in reinvestment of dividends and distributions | | | 1,715 | | | | 94,076 | |
Shares purchased | | | (6,042 | ) | | | (379,864 | ) |
Net increase (decrease) in shares outstanding | | | 21,393 | | | $ | 1,396,576 | |
| | |
Year ended September 30, 2023: | | | | | | | | |
Shares sold | | | 17,971 | | | $ | 907,809 | |
Shares issued in reinvestment of dividends and distributions | | | 2,635 | | | | 109,679 | |
Shares purchased | | | (106,036 | ) | | | (4,971,735 | ) |
Net increase (decrease) in shares outstanding | | | (85,430 | ) | | $ | (3,954,247 | ) |
50
Jennison Growth (cont’d.):
| | | | | | | | |
| | | |
| Share Class | | Shares | | | Amount | |
| | |
Class R4 | | | | | | | | |
Year ended September 30, 2024: | | | | | | | | |
Shares sold | | | 27,411 | | | $ | 1,788,027 | |
Shares issued in reinvestment of dividends and distributions | | | 19,285 | | | | 1,079,211 | |
Shares purchased | | | (33,285 | ) | | | (2,075,698 | ) |
Net increase (decrease) in shares outstanding | | | 13,411 | | | $ | 791,540 | |
| | |
Year ended September 30, 2023: | | | | | | | | |
Shares sold | | | 18,448 | | | $ | 890,718 | |
Shares issued in reinvestment of dividends and distributions | | | 6,953 | | | | 294,128 | |
Shares purchased | | | (127,491 | ) | | | (5,803,545 | ) |
Net increase (decrease) in shares outstanding | | | (102,090 | ) | | $ | (4,618,699 | ) |
| | |
Class R6 | | | | | | | | |
Year ended September 30, 2024: | | | | | | | | |
Shares sold | | | 6,500,826 | | | $ | 416,694,834 | |
Shares issued in reinvestment of dividends and distributions | | | 1,558,286 | | | | 88,806,699 | |
Shares purchased | | | (7,108,239 | ) | | | (459,468,398 | ) |
Net increase (decrease) in shares outstanding before conversion | | | 950,873 | | | | 46,033,135 | |
Shares issued upon conversion from other share class(es) | | | 264,231 | | | | 17,978,321 | |
Shares purchased upon conversion into other share class(es) | | | (1,168 | ) | | | (82,305 | ) |
Net increase (decrease) in shares outstanding | | | 1,213,936 | | | $ | 63,929,151 | |
| | |
Year ended September 30, 2023: | | | | | | | | |
Shares sold | | | 10,082,656 | | | $ | 505,107,406 | |
Shares issued in reinvestment of dividends and distributions | | | 421,857 | | | | 18,106,108 | |
Shares purchased | | | (5,926,649 | ) | | | (291,444,901 | ) |
Net increase (decrease) in shares outstanding before conversion | | | 4,577,864 | | | | 231,768,613 | |
Shares issued upon conversion from other share class(es) | | | 338,919 | | | | 17,932,684 | |
Shares purchased upon conversion into other share class(es) | | | (809 | ) | | | (45,763 | ) |
Net increase (decrease) in shares outstanding | | | 4,915,974 | | | $ | 249,655,534 | |
The RIC, on behalf of each Fund, along with other affiliated registered investment companies (the “Participating 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 table below provides details of the SCA in effect at the reporting period-end.
| | | | |
| | | |
| | | Current SCA | | Prior SCA |
Term of Commitment | | 9/27/2024 – 9/25/2025 | | 9/29/2023 – 9/26/2024 |
Total Commitment | | $ 1,200,000,000 | | $ 1,200,000,000 |
51
Notes to Financial Statements (continued)
| | | | |
| | | |
| | | Current SCA | | Prior SCA |
Annualized Commitment Fee on the Unused Portion of the SCA | | 0.15% | | 0.15% |
Annualized Interest Rate on Borrowings | | 1.00% plus the higher of (1) the effective federal funds rate, (2) the daily SOFR rate plus 0.10% or (3) zero percent | | 1.00% plus the higher of (1) the effective federal funds rate, (2) the daily SOFR rate plus 0.10% or (3) zero percent |
Certain affiliated registered investment companies that are parties to the SCA include portfolios that are subject to a predetermined mathematical formula used to manage certain benefit guarantees offered under variable annuity contracts. The formula may result in large scale asset flows into and out of these portfolios. Consequently, these portfolios may be more likely to utilize the SCA for purposes of funding redemptions. It may be possible for those portfolios to fully exhaust the committed amount of the SCA, thereby requiring the Manager to allocate available funding per a Board-approved methodology designed to treat the Participating Funds in the SCA equitably.
Each Fund indicated below utilized the SCA during the year ended September 30, 2024. The average balance outstanding is for the number of days each Fund utilized the credit facility.
| | | | | | | | | | |
| | | | | | |
| Fund | | Average Balance Outstanding | | Weighted
Average
Interest Rates | | Number of Days
Outstanding | | Maximum
Balance
Outstanding | | Balance
Outstanding at
September 30, 2024 |
Jennison Growth | | $5,576,500 | | 6.43% | | 18 | | $9,966,000 | | $— |
| 9. | Risks of Investing in the Funds |
Each Fund’s principal risks include, but are not limited to, some or all of the risks discussed below. For further information on the risks applicable to any given Fund, please refer to the Prospectus and Statement of Additional Information of that Fund.
| | | | |
| | | |
| Risks | | Jennison
Focused
Value | | Jennison
Growth |
Economic and Market Events | | X | | X |
Equity and Equity-Related Securities | | X | | X |
Foreign Securities | | X | | X |
Growth Style | | – | | X |
Increase in Expenses | | X | | X |
Large Capitalization Company | | X | | X |
Large Shareholder and Large Scale Redemption | | X | | X |
Management | | X | | X |
Market Disruption and Geopolitical | | X | | X |
52
| | | | |
| | | |
Market | | X | | X |
Sector Exposure | | X | | X |
Value Style | | X | | – |
Economic and Market Events Risk: Events in the U.S. and global financial markets, including actions taken by the U.S. Federal Reserve or foreign central banks to stimulate or stabilize economic growth or the functioning of the securities markets, or otherwise reduce inflation, may at times result in unusually high market volatility, which could negatively impact performance. Governmental efforts to curb inflation often have negative effects on the level of economic activity. Relatively reduced liquidity in credit and fixed income markets could adversely affect issuers worldwide.
Equity and Equity-Related Securities Risk: Equity and equity-related securities may be subject to changes in value, and their values may be more volatile than those of other asset classes. In addition to an individual security losing value, the value of the equity markets or a sector in which the Fund invests could go down. Different parts of a market can react differently to adverse issuer, market, regulatory, political and economic developments.
Foreign Securities Risk: Investments in securities of non-U.S. issuers (including those denominated in U.S. dollars) may involve more risk than investing in securities of U.S. issuers. Foreign political, economic and legal systems, especially those in developing and emerging market countries, may be less stable and more volatile than in the United States. Foreign legal systems generally have fewer regulatory requirements than the U.S. legal system, particularly those of emerging markets. In general, less information is publicly available with respect to non-U.S. companies than U.S. companies. Non-U.S. companies generally are not subject to the same accounting, auditing, and financial reporting standards as are U.S. companies. Additionally, the changing value of foreign currencies and changes in exchange rates could also affect the value of the assets the Fund holds and the Fund’s performance. Certain foreign countries may impose restrictions on the ability of issuers of foreign securities to make payment of principal and interest or dividends to investors located outside the country, due to blockage of foreign currency exchanges or otherwise. Investments in emerging markets are subject to greater volatility and price declines.
In addition, the Fund’s investments in non-U.S. securities may be subject to the risks of nationalization or expropriation of assets, imposition of currency exchange controls or restrictions on the repatriation of non-U.S. currency, confiscatory taxation and adverse diplomatic developments. Special U.S. tax considerations may apply.
Growth Style Risk: The Fund’s growth style may subject the Fund to above-average fluctuations as a result of seeking higher than average capital growth. Historically, growth stocks have performed best during later stages of economic expansion and value stocks have performed best during periods of economic recovery. Since the Fund follows a growth investment style, there is the risk that the growth investment style may be out of favor for a period of time. At times when the style is out of favor, the Fund may underperform the market in general, its benchmark and other mutual funds.
53
Notes to Financial Statements (continued)
Increase in Expenses Risk: Your actual cost of investing in the Fund may be higher than the expenses shown in the expense table of the Fund’s prospectus for a variety of reasons. For example, expense ratios may be higher than those shown if average net assets decrease. Net assets are more likely to decrease and Fund expense ratios are more likely to increase when markets are volatile. Active and frequent trading of Fund securities can increase expenses.
Large Capitalization Company Risk: Companies with large market capitalizations go in and out of favor based on market and economic conditions. Larger companies tend to be less volatile than companies with smaller market capitalizations. In exchange for this potentially lower risk, the Fund’s value may not rise or fall as much as the value of funds that emphasize companies with smaller market capitalizations.
Large Shareholder and Large Scale Redemption Risk: Certain individuals, accounts, funds (including funds affiliated with the Manager) or institutions, including the Manager and its affiliates, may from time to time own or control a substantial amount of the Fund’s shares. There is no requirement that these entities maintain their investment in the Fund. There is a risk that such large shareholders or that the Fund’s shareholders generally may redeem all or a substantial portion of their investments in the Fund in a short period of time, which could have a significant negative impact on the Fund’s NAV, liquidity, and brokerage costs. Large redemptions could also result in tax consequences to shareholders and impact the Fund’s ability to implement its investment strategy. The Fund’s ability to pursue its investment objective after one or more large scale redemptions may be impaired and, as a result, the Fund may invest a larger portion of its assets in cash or cash equivalents.
Management Risk: Actively managed funds are subject to management risk. The subadviser will apply investment techniques and risk analyses in making investment decisions for the Fund, but the subadviser’s judgments about the attractiveness, value or market trends affecting a particular security, industry or sector or about market movements may be incorrect. Additionally, the investments selected for the Fund may underperform the markets in general, the Fund’s benchmark and other funds with similar investment objectives.
Market Disruption and Geopolitical Risks: Market disruption can be caused by economic, financial or political events and factors, including but not limited to, international wars or conflicts (including Russia’s military invasion of Ukraine and the Israel-Hamas war), geopolitical developments (including trading and tariff arrangements, sanctions and cybersecurity attacks), instability in regions such as Asia, Eastern Europe and the Middle East, terrorism, natural disasters and public health epidemics (including the outbreak of COVID-19 globally).
54
The extent and duration of such events and resulting market disruptions cannot be predicted, but could be substantial and could magnify the impact of other risks to the Fund. These and other similar events could adversely affect the U.S. and foreign financial markets and lead to increased market volatility, reduced liquidity in the securities markets, significant negative impacts on issuers and the markets for certain securities and commodities and/or government intervention. They may also cause short- or long-term economic uncertainties in the United States and worldwide. As a result, whether or not the Fund invests in securities of issuers located in or with significant exposure to the countries directly affected, the value and liquidity of the Fund’s investments may be negatively impacted. Further, due to closures of certain markets and restrictions on trading certain securities, the value of certain securities held by the Fund could be significantly impacted, which could lead to such securities being valued at zero.
Market Risk: Securities markets may be volatile and the market prices of the Fund’s securities may decline. Securities fluctuate in price based on changes in an issuer’s financial condition and overall market and economic conditions. If the market prices of the securities owned by the Fund fall, the value of your investment in the Fund will decline.
Sector Exposure Risk: At times, the Fund may have a significant portion of its assets invested in the same economic sectors. Issuers in the same economic sector may be similarly affected by economic or market events, making the Fund more vulnerable to unfavorable developments in that economic sector than funds that invest more broadly.
Value Style Risk: Since the Fund follows a value investment style, there is the risk that the value style may be out of favor for long periods of time, that the market will not recognize a security’s intrinsic value for a long time or at all, or that a stock judged to be undervalued may actually be appropriately priced or overvalued. Issuers of value stocks may have experienced adverse business developments or may be subject to special risks that have caused the stock to be out of favor. In addition, the Fund’s value investment style may go out of favor with investors, negatively affecting the Fund’s performance. If the Fund’s assessment of market conditions or a company’s value is inaccurate, the Fund could suffer losses or produce poor performance relative to other funds.
55
Report of Independent Registered Public Accounting Firm
To the Board of Directors of The Prudential Investment Portfolios, Inc. and Shareholders of PGIM Jennison Focused Value Fund and PGIM Jennison Growth Fund
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of PGIM Jennison Focused Value Fund and PGIM Jennison Growth Fund (two of the funds constituting The Prudential Investment Portfolios, Inc., hereafter collectively referred to as the “Funds”) as of September 30, 2024, the related statements of operations for the year ended September 30, 2024, the statements of changes in net assets for each of the two years in the period ended September 30, 2024, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2024 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of September 30, 2024, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended September 30, 2024 and each of the financial highlights for each of the five years in the period ended September 30, 2024 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of September 30, 2024 by correspondence with the custodian, transfer agent and brokers. We believe that our audits provide a reasonable basis for our opinions.
|
| /s/PricewaterhouseCoopers LLP |
| New York, New York |
| November 21, 2024 |
We have served as the auditor of one or more investment companies in the PGIM Retail Funds complex since 2020.
56
Other Information
Form N-CSR Item 8 - Changes in and Disagreements with Accountants for Open-End Management Investment Companies - None.
Form N-CSR Item 9 - Proxy Disclosures for Open-End Management Investment Companies-None.
Form N-CSR Item 10 - Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies – Included as part of the financial statements filed under Item 7 of this Form.
Form N-CSR Item 11 - Statement Regarding Basis for Approval of Investment Advisory Contract.
Approval of Advisory Agreements
PGIM Jennison Focused Value Fund
The Fund’s Board of Directors
The Board of Directors (the “Board”) of PGIM Jennison Focused Value Fund (the “Fund”)1 consists of ten individuals, eight of whom are not “interested persons” of the Fund, as defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independent Directors”). The Board is responsible for the oversight of the Fund and its operations, and performs the various duties imposed on the directors of investment companies by the 1940 Act. The Independent Directors have retained independent legal counsel to assist them in connection with their duties. The Chair of the Board is an Independent Director. The Board has established five standing committees: the Audit Committee, the Nominating and Governance Committee, the Compliance Committee and two Investment Committees. Each committee is chaired by, and composed of, Independent Directors.
Annual Approval of the Fund’s Advisory Agreements
As required under the 1940 Act, the Board determines annually whether to renew the Fund’s management agreement with PGIM Investments LLC (“PGIM Investments”) and the Fund’s subadvisory agreement with Jennison Associates LLC (“Jennison”). In considering the renewal of the agreements, the Board, including all of the Independent Directors, met on May 28 and June 4-6 , 2024 (the “Board Meeting”) and approved the renewal of the agreements through July 31, 2025, after concluding that the renewal of the agreements was in the best interests of the Fund and its shareholders.
In advance of the meetings, the Board requested and received materials relating to the agreements, and had the opportunity to ask questions and request further information in connection with its consideration. Among other things, the Board considered comparative fee information from PGIM Investments and Jennison. Also, the Board considered comparisons with other mutual funds in relevant peer universes and peer groups, as is further discussed below.
In approving the agreements, the Board, including the Independent Directors advised by independent legal counsel, considered the factors it deemed relevant, including the nature, quality and extent of services provided by PGIM Investments and the subadviser, the performance of the Fund, the profitability of PGIM Investments and its affiliates, expenses and fees, and the potential for economies of scale that may be shared with the Fund and its
| 1 | PGIM Jennison Focused Value Fund is a series of The Prudential Investment Portfolios, Inc. |
PGIM Jennison Focused Value Fund
Approval of Advisory Agreements (continued)
shareholders as the Fund’s assets grow. In their deliberations, the Directors did not identify any single factor which alone was responsible for the Board’s decision to approve an agreement with respect to the Fund. In connection with its deliberations, the Board considered information provided by PGIM Investments throughout the year at regular and special Board meetings, presentations from portfolio managers and other information, as well as information furnished at or in advance of the Board Meeting.
The Directors determined that the overall arrangements between the Fund and PGIM Investments, which serves as the Fund’s investment manager pursuant to a management agreement, and between PGIM Investments and Jennison, which serves as the Fund’s subadviser pursuant to the terms of a subadvisory agreement with PGIM Investments, are in the best interests of the Fund and its shareholders in light of the services performed, fees charged and such other matters as the Directors considered relevant in the exercise of their business judgment. The Board considered the approval of the agreements for the Fund as part of its consideration of agreements for multiple funds, but its approvals were made on a fund-by-fund basis.
The material factors and conclusions that formed the basis for the Directors’ reaching their determinations to approve the continuance of the agreements are separately discussed below.
Nature, Quality and Extent of Services
The Board received and considered information regarding the nature, quality and extent of services provided to the Fund by PGIM Investments and Jennison. The Board noted that Jennison is affiliated with PGIM Investments. The Board considered the services provided by PGIM Investments, including but not limited to the oversight of the subadviser for the Fund, as well as the provision of accounting oversight, fund recordkeeping, compliance and other services to the Fund, and PGIM Investments’ role as administrator for the Fund’s liquidity risk management program and as valuation designee. With respect to PGIM Investments’ oversight of the subadviser, the Board noted that PGIM Investments’ Strategic Investment Research Group (“SIRG”), which is a business unit of PGIM Investments, is responsible for monitoring and reporting to PGIM Investments’ senior management on the performance and operations of the subadviser. The Board also considered that PGIM Investments pays the salaries of all of the officers and interested Directors of the Fund who are part of Fund management. The Board also considered the investment subadvisory services provided by Jennison, including investment research and security selection, as well as adherence to the Fund’s investment restrictions and compliance with applicable Fund policies and procedures. The Board considered PGIM Investments’ evaluation of the subadviser, as well as PGIM Investments’ recommendation, based on its review of the subadviser, to renew the subadvisory agreement.
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The Board considered the qualifications, backgrounds and responsibilities of PGIM Investments’ senior management responsible for the oversight of the Fund and Jennison, and also considered the qualifications, backgrounds and responsibilities of the Jennison portfolio managers who are responsible for the day-to-day management of the Fund’s portfolio. The Board was provided with information pertaining to PGIM Investments’ and Jennison’s organizational structure, senior management, investment operations, and other relevant information pertaining to PGIM Investments and Jennison. The Board also noted that it received favorable compliance reports from the Fund’s Chief Compliance Officer (“CCO”) as to each of PGIM Investments and Jennison.
The Board concluded that it was satisfied with the nature, extent and quality of the investment management services provided by PGIM Investments and the subadvisory services provided to the Fund by Jennison, and that there was a reasonable basis on which to conclude that the Fund benefits from the services provided by PGIM Investments and Jennison under the management and subadvisory agreements.
Costs of Services and Profits Realized by PGIM Investments
The Board was provided with information on the profitability of PGIM Investments and its affiliates in serving as the Fund’s investment manager. The Board discussed with PGIM Investments the methodology utilized in assembling the information regarding profitability and considered its reasonableness. The Board recognized that it is difficult to make comparisons of profitability from fund management contracts because comparative information is not generally publicly available and is affected by numerous factors, including the structure of the particular adviser, the types of funds it manages, its business mix, numerous assumptions regarding allocations of direct and indirect costs, and the adviser’s capital structure and cost of capital. However, the Board considered that the cost of services provided by PGIM Investments during the year ended December 31, 2023 exceeded the management fees received by PGIM Investments, resulting in an operating loss to PGIM Investments. Taking these factors into account, the Board concluded that the profitability of PGIM Investments and its affiliates in relation to the services rendered was not unreasonable.
Economies of Scale
The Board received and discussed information concerning economies of scale that PGIM Investments may realize as the Fund’s assets grow beyond current levels. The Board noted that the management fee schedule for the Fund includes breakpoints, which have the effect of decreasing the fee rate as assets increase. During the course of time, the Board has considered information regarding the launch date of the Fund, the management fees of the Fund compared to those of similarly managed funds and PGIM Investments’
PGIM Jennison Focused Value Fund
Approval of Advisory Agreements (continued)
investment in the Fund over time. The Board noted that economies of scale can be shared with the Fund in other ways, including low management fees from inception, additional technological and personnel investments to enhance shareholder services, and maintaining existing expense structures in the face of a rising cost environment. The Board also considered PGIM Investments’ assertion that it continually evaluates the management fee schedule of the Fund and the potential to share economies of scale through breakpoints or fee waivers as asset levels increase.
The Board recognized the inherent limitations of any analysis of economies of scale, stemming largely from the Board’s understanding that most of PGIM Investments’ costs are not specific to individual funds, but rather are incurred across a variety of products and services.
Other Benefits to PGIM Investments and Jennison
The Board considered potential ancillary benefits that might be received by PGIM Investments and Jennison and their affiliates as a result of their relationship with the Fund. The Board concluded that potential benefits to be derived by PGIM Investments included transfer agency fees received by the Fund’s transfer agent (which is affiliated with PGIM Investments), and benefits to its reputation as well as other intangible benefits resulting from PGIM Investments’ association with the Fund. The Board concluded that the potential benefits to be derived by Jennison included its ability to use soft dollar credits, as well as the potential benefits consistent with those generally resulting from an increase in assets under management, specifically, potential access to additional research resources and benefits to its reputation. The Board concluded that the benefits derived by PGIM Investments and Jennison were consistent with the types of benefits generally derived by investment managers and subadvisers to mutual funds.
Performance of the Fund / Fees and Expenses
The Board considered certain additional factors and made related conclusions relating to the historical performance of the Fund for the one-, three-, five- and ten-year periods ended December 31, 2023.
The Board also considered the Fund’s actual management fee, as well as the Fund’s net total expense ratio, for the fiscal year ended September 30, 2023. The Board considered the management fee for the Fund as compared to the management fee charged by PGIM Investments to other funds and the fee charged by other advisers to comparable mutual funds in a peer group. The actual management fee represents the fee rate actually paid by Fund shareholders and includes any fee waivers or reimbursements. The net total expense ratio for the Fund represents the actual expense ratio incurred by Fund shareholders.
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The mutual funds included in the peer universe, which was used to consider performance, and the peer group, which was used to consider fees and expenses, were objectively determined by Broadridge, an independent provider of mutual fund data. In certain circumstances, PGIM Investments also provided supplemental peer universe or peer group information, for reasons addressed with the Board. The comparisons placed the Fund in various quartiles over various periods, with the first quartile being the best 25% of the mutual funds (for performance, the best performing mutual funds and, for expenses, the lowest cost mutual funds).
The section below summarizes key factors considered by the Board and the Board’s conclusions regarding the Fund’s performance, fees and overall expenses. The table sets forth net performance comparisons (which reflect the impact on performance of fund expenses, or any subsidies, expense caps or waivers that may be applicable) with the peer universe, actual management fees with the peer group (which reflect the impact of any subsidies or fee waivers), and net total expenses with the peer group, each of which were key factors considered by the Board.
| | | | | | | | |
| | | | | |
| Net Performance | | 1 Year | | 3 Years | | 5 Years | | 10 Years |
| | 2nd Quartile | | 2nd Quartile | | 4th Quartile | | 4th Quartile |
Actual Management Fees: 1st Quartile |
Net Total Expenses: 1st Quartile |
| ● | The Board noted that the Fund outperformed its benchmark index over the one- and three-year periods, and underperformed over the remaining periods. |
| ● | The Board noted that in December 2019, the Fund’s investment approach transitioned from blend to a focused large-cap value strategy and that the Fund’s benchmark changed from the S&P 500 Index to the Russell 1000 Value Index, and the Fund’s performance history prior to December 31, 2019 does not reflect its current investment strategy. In this regard, the Board noted that the Fund ranked in the second quartile for the one- and three-year periods. |
| ● | The Board and PGIM Investments agreed to a contractual expense cap, which (exclusive of certain fees and expenses) caps annual fund operating expenses at 0.75% for Class Z shares and 0.75% for Class R6 shares through January 31, 2025. |
| ● | The Board and PGIM Investments agreed to retain the Fund’s existing contractual expense cap, which (exclusive of certain fees and expenses) caps transfer agency, shareholder servicing, sub-transfer agency and blue sky fees to the extent that such fees cause annual fund operating expenses to exceed 1.53% for Class R shares through January 31, 2025. |
PGIM Jennison Focused Value Fund
Approval of Advisory Agreements (continued)
| ● | In addition, PGIM Investments will waive management fees or shared operating expenses on any share class to the same extent that it waives such expenses on any other share class, and has agreed that total annual fund operating expenses for Class R6 shares will not exceed total annual fund operating expenses for Class Z shares. |
| ● | The Board concluded that, in light of the above, it would be in the best interests of the Fund and its shareholders to renew the agreements. |
| ● | The Board concluded that the management fees (including subadvisory fees) and total expenses were reasonable in light of the services provided. |
* * *
After full consideration of these factors, the Board concluded that the approval of the agreements was in the best interests of the Fund and its shareholders.
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Approval of Advisory Agreements
PGIM Jennison Growth Fund
The Fund’s Board of Directors
The Board of Directors (the “Board”) of PGIM Jennison Growth Fund (the “Fund”)1 consists of ten individuals, eight of whom are not “interested persons” of the Fund, as defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independent Directors”). The Board is responsible for the oversight of the Fund and its operations, and performs the various duties imposed on the directors of investment companies by the 1940 Act. The Independent Directors have retained independent legal counsel to assist them in connection with their duties. The Chair of the Board is an Independent Director. The Board has established five standing committees: the Audit Committee, the Nominating and Governance Committee, the Compliance Committee and two Investment Committees. Each committee is chaired by, and composed of, Independent Directors.
Annual Approval of the Fund’s Advisory Agreements
As required under the 1940 Act, the Board determines annually whether to renew the Fund’s management agreement with PGIM Investments LLC (“PGIM Investments”) and the Fund’s subadvisory agreement with Jennison Associates LLC (“Jennison”). In considering the renewal of the agreements, the Board, including all of the Independent Directors, met on May 28 and June 4-6, 2024 (the “Board Meeting”) and approved the renewal of the agreements through July 31, 2025, after concluding that the renewal of the agreements was in the best interests of the Fund and its shareholders.
In advance of the meetings, the Board requested and received materials relating to the agreements, and had the opportunity to ask questions and request further information in connection with its consideration. Among other things, the Board considered comparative fee information from PGIM Investments and Jennison. Also, the Board considered comparisons with other mutual funds in relevant peer universes and peer groups, as is further discussed below.
In approving the agreements, the Board, including the Independent Directors advised by independent legal counsel, considered the factors it deemed relevant, including the nature, quality and extent of services provided by PGIM Investments and the subadviser, the performance of the Fund, the profitability of PGIM Investments and its affiliates, expenses and fees, and the potential for economies of scale that may be shared with the Fund and its shareholders as the Fund’s assets grow. In their deliberations, the Directors did not identify
| 1 | PGIM Jennison Growth Fund is a series of The Prudential Investment Portfolios, Inc. |
PGIM Jennison Growth Fund
Approval of Advisory Agreements (continued)
any single factor which alone was responsible for the Board’s decision to approve an agreement with respect to the Fund. In connection with its deliberations, the Board considered information provided by PGIM Investments throughout the year at regular and special Board meetings, presentations from portfolio managers and other information, as well as information furnished at or in advance of the Board Meeting.
The Directors determined that the overall arrangements between the Fund and PGIM Investments, which serves as the Fund’s investment manager pursuant to a management agreement, and between PGIM Investments and Jennison, which serves as the Fund’s subadviser pursuant to the terms of a subadvisory agreement with PGIM Investments, are in the best interests of the Fund and its shareholders in light of the services performed, fees charged and such other matters as the Directors considered relevant in the exercise of their business judgment. The Board considered the approval of the agreements for the Fund as part of its consideration of agreements for multiple funds, but its approvals were made on a fund-by-fund basis.
The material factors and conclusions that formed the basis for the Directors’ reaching their determinations to approve the continuance of the agreements are separately discussed below.
Nature, Quality and Extent of Services
The Board received and considered information regarding the nature, quality and extent of services provided to the Fund by PGIM Investments and Jennison. The Board noted that Jennison is affiliated with PGIM Investments. The Board considered the services provided by PGIM Investments, including but not limited to the oversight of the subadviser for the Fund, as well as the provision of accounting oversight, fund recordkeeping, compliance and other services to the Fund, such as PGIM Investments’ role as administrator for the Fund’s liquidity risk management program and as valuation designee. With respect to PGIM Investments’ oversight of the subadviser, the Board noted that PGIM Investments’ Strategic Investment Research Group (“SIRG”), which is a business unit of PGIM Investments, is responsible for monitoring and reporting to PGIM Investments’ senior management on the performance and operations of the subadviser. The Board also considered that PGIM Investments pays the salaries of all of the officers and interested Directors of the Fund who are part of Fund management. The Board also considered the investment subadvisory services provided by Jennison, as well as adherence to the Fund’s investment restrictions and compliance with applicable Fund policies and procedures. The Board considered PGIM Investments’ evaluation of the subadviser, including investment research and security selection, as well as PGIM Investments’ recommendation, based on its review of the subadviser, to renew the subadvisory agreement.
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The Board considered the qualifications, backgrounds and responsibilities of PGIM Investments’ senior management responsible for the oversight of the Fund and Jennison, and also considered the qualifications, backgrounds and responsibilities of the Jennison portfolio managers who are responsible for the day-to-day management of the Fund’s portfolio. The Board was provided with information pertaining to PGIM Investments’ and Jennison’s organizational structure, senior management, investment operations, and other relevant information pertaining to PGIM Investments and Jennison. The Board also noted that it received favorable compliance reports from the Fund’s Chief Compliance Officer (“CCO”) as to each of PGIM Investments and Jennison.
The Board concluded that it was satisfied with the nature, extent and quality of the investment management services provided by PGIM Investments and the subadvisory services provided to the Fund by Jennison, and that there was a reasonable basis on which to conclude that the Fund benefits from the services provided by PGIM Investments and Jennison under the management and subadvisory agreements.
Costs of Services and Profits Realized by PGIM Investments
The Board was provided with information on the profitability of PGIM Investments and its affiliates in serving as the Fund’s investment manager. The Board discussed with PGIM Investments the methodology utilized in assembling the information regarding profitability and considered its reasonableness. The Board recognized that it is difficult to make comparisons of profitability from fund management contracts because comparative information is not generally publicly available and is affected by numerous factors, including the structure of the particular adviser, the types of funds it manages, its business mix, numerous assumptions regarding allocations of direct and indirect costs, and the adviser’s capital structure and cost of capital. Taking these factors into account, the Board concluded that the profitability of PGIM Investments and its affiliates in relation to the services rendered was not unreasonable.
Economies of Scale
The Board received and discussed information concerning economies of scale that PGIM Investments may realize as the Fund’s assets grow beyond current levels. The Board noted that the management fee schedule for the Fund includes breakpoints, which have the effect of decreasing the fee rate as assets increase. During the course of time, the Board has considered information regarding the launch date of the Fund, the management fees of the Fund compared to those of similarly managed funds, and PGIM Investments’ investment in the Fund over time. The Board noted that economies of scale can be shared with the Fund in other ways, including low management fees from inception, additional technological and personnel investments to enhance shareholder services, and maintaining existing expense structures in the face of a rising cost environment. The Board also
PGIM Jennison Growth Fund
Approval of Advisory Agreements (continued)
considered PGIM Investments’ assertion that it continually evaluates the management fee schedule of the Fund and the potential to share economies of scale through breakpoints or fee waivers as asset levels increase.
The Board recognized the inherent limitations of any analysis of economies of scale, stemming largely from the Board’s understanding that most of PGIM Investments’ costs are not specific to individual funds, but rather are incurred across a variety of products and services.
Other Benefits to PGIM Investments and Jennison
The Board considered potential ancillary benefits that might be received by PGIM
Investments, Jennison and their affiliates as a result of their relationship with the Fund. The Board concluded that potential benefits to be derived by PGIM Investments included transfer agency fees received by the Fund’s transfer agent (which is affiliated with PGIM Investments), and benefits to its reputation as well as other intangible benefits resulting from PGIM Investments’ association with the Fund. The Board concluded that the potential benefits to be derived by Jennison included its ability to use soft dollar credits, as well as the potential benefits consistent with those generally resulting from an increase in assets under management, specifically, potential access to additional research resources and benefits to its reputation. The Board concluded that the benefits derived by PGIM Investments and Jennison were consistent with the types of benefits generally derived by investment managers and subadvisers to mutual funds.
Performance of the Fund / Fees and Expenses
The Board considered certain additional factors and made related conclusions relating to the historical performance of the Fund for the one-, three-, five- and ten-year periods ended December 31, 2023.
The Board also considered the Fund’s actual management fee, as well as the Fund’s net total expense ratio, for the fiscal year ended September 30, 2023. The Board considered the management fee for the Fund as compared to the management fee charged by PGIM Investments to other funds and the fee charged by other advisers to comparable mutual funds in a peer group. The actual management fee represents the fee rate actually paid by Fund shareholders and includes any fee waivers or reimbursements. The net total expense ratio for the Fund represents the actual expense ratio incurred by Fund shareholders.
The mutual funds included in the peer universe, which was used to evaluate performance, and the peer group, which was used to evaluate expenses and fees, were objectively determined by Broadridge, an independent provider of mutual fund data. In certain
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circumstances, PGIM Investments also provided supplemental peer universe or peer group information for reasons addressed with the Board. The comparisons placed the Fund in various quartiles over various periods, with the first quartile being the best 25% of the mutual funds (for performance, the best performing mutual funds and, for expenses, the lowest cost mutual funds).
The section below summarizes key factors considered by the Board and the Board’s conclusions regarding the Fund’s performance, fees and overall expenses. The table sets forth net performance comparisons (which reflect the impact on performance of fund expenses, or any subsidies, expense caps or waivers that may be applicable) with the peer universe, actual management fees with the peer group (which reflect the impact of any subsidies or fee waivers), and net total expenses with the peer group, each of which were key factors considered by the Board.
| | | | | | | | |
| | | | | |
| Net Performance | | 1 Year | | 3 Years | | 5 Years | | 10 Years |
| | 1st Quartile | | 4th Quartile | | 1st Quartile | | 1st Quartile |
Actual Management Fees: 2nd Quartile |
Net Total Expenses: 2nd Quartile |
| ● | The Board noted that the Fund outperformed its benchmark index over the one- year period and underperformed over the remaining periods. |
| ● | The Board considered PGIM Investments’ assertions that the Fund’s underperformance was primarily attributable to 2021 and 2022, and that PGIM Investments is encouraged by the Fund’s strong returns over the long term as demonstrated by its five- and 10-year performance versus peers and that performance had improved to the first quartile for the on-year period. |
| ● | The Board and PGIM Investments agreed to retain the existing contractual expense cap that (exclusive of certain fees and expenses) caps total annual operating expenses at 0.60% of average daily net assets for Class R6 shares through January 31, 2025. |
| ● | The Board and PGIM Investments also agreed to retain the existing contractual expense cap that (exclusive of certain fees and expenses) limits transfer agency, shareholder servicing, sub-transfer agency, and blue sky fees to the extent that such fees cause annual operating expenses to exceed 1.10% for Class R2 shares and 0.85% for Class R4 shares through January 31, 2025. |
| ● | In addition, PGIM Investments will waive management fees or shared operating expenses on any share class to the same extent that it waives such expenses on any other share class and has agreed that total annual fund operating expenses for Class R6 shares will not exceed total annual fund operating expenses for Class Z shares. |
| ● | The Board concluded that, in light of the above, it would be in the best interests of the Fund and its shareholders to renew the agreements. |
PGIM Jennison Growth Fund
| ● | The Board concluded that the management fees (including subadvisory fees) and total expenses were reasonable in light of the services provided. |
* * *
After full consideration of these factors, the Board concluded that approval of the agreements was in the best interests of the Fund and its shareholders.
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| Item 12 – | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not applicable. |
| Item 13 – | Portfolio Managers of Closed-End Management Investment Companies – Not applicable. |
| Item 14 – | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not applicable. |
| Item 15 – | Submission of Matters to a Vote of Security Holders – There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors. |
| Item 16 – | 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 (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d))) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
| Item 17 – | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies – Not applicable. |
| Item 18 – | Recovery of Erroneously Awarded Compensation – Not applicable. |
| | (a)(2) | Policy required by the listing standards adopted pursuant to Rule 10D-1 under the Securities Exchange Act of 1934 – Not applicable. |
| | (a)(3)(1) | Any written solicitation to purchase securities under Rule 23c-1 under the Investment Company Act of 1940 – Not applicable. |
| | (a)(3)(2) | Change in the registrant’s independent public accountant – Not applicable. |
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/ Andrew R. French |
| | Andrew R. French |
| | Secretary |
| |
Date: | | November 21, 2024 |
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 |
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Date: | | November 21, 2024 |
| |
By: | | /s/ Christian J. Kelly |
| | Christian J. Kelly |
| | Chief Financial Officer (Principal Financial Officer) |
| |
Date: | | November 21, 2024 |
