Prudential Investment Portfolios 9 UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
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| Investment Company Act file number: | | 811-09101 |
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| Exact name of registrant as specified in charter: | | Prudential Investment Portfolios 9 |
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| Address of principal executive offices: | | 655 Broad Street, 17th Floor |
| | Newark, New Jersey 07102 |
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| Name and address of agent for service: | | Andrew R. French |
| | 655 Broad Street, 17th Floor |
| | Newark, New Jersey 07102 |
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| Registrant’s telephone number, including area code: | | 800-225-1852 |
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| Date of fiscal year end: | | 10/31/2022 |
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| Date of reporting period: | | 4/30/2022 |
Item 1 – Reports to Stockholders
PGIM ABSOLUTE RETURN BOND FUND
SEMIANNUAL REPORT
APRIL 30, 2022
To enroll in e-delivery, go to pgim.com/investments/resource/edelivery
Table of Contents
This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
The information about the Fund’s portfolio holdings is for the period covered by this report and is subject to change thereafter.
The accompanying financial statements as of April 30, 2022 were not audited and, accordingly, no auditor’s opinion is expressed on them.
Mutual funds are distributed by Prudential Investment Management Services LLC, (PIMS), member SIPC. PGIM Fixed Income is a unit of PGIM, Inc. (PGIM), a registeredinvestment adviser. PIMS and PGIM are Prudential Financial companies. © 2022 Prudential Financial, Inc. and its related entities. PGIM and the PGIM logo are service marks of Prudential Financial, Inc. and its related entities, registered inmany jurisdictions worldwide.
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Letter from the President
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 | | Dear Shareholder: We hope you find the semiannual report for the PGIM Absolute Return Bond Fund informative and useful. The report covers performance for the six-month period ended April30, 2022. Regarding your investments with PGIM, we believe it is important to maintain adiversified portfolio of funds consistent with your tolerance for risk, time horizon, and financial goals. |
Your financial advisor can help you create a diversified investment plan that may include funds covering all the basic asset classes andthat reflects your personal investor profile and risk tolerance. However, diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets.
At PGIM Investments, we provide access to active investment strategies across the global markets in the pursuit of consistent outperformance for investors. PGIM is atop-10 investment manager globally with more than $1.5 trillion in assets under management. Our scale and investment expertise allow us to deliver a diversified suite of actively managed solutions across a broad spectrum of asset classes andinvestment styles.
Thank you for choosing our family of funds.
Sincerely,
Stuart S. Parker, President
PGIM AbsoluteReturn Bond Fund
June 15, 2022
PGIM Absolute Return BondFund 3
Your Fund’s Performance
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investmentwill fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of themost recent month-end by visiting our website at pgim.com/investments or by calling (800) 225-1852.
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| | | Total Returns as of 4/30/22 | | Average Annual Total Returns as of 4/30/22 |
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| | | (without sales charges) | | (with sales charges) |
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| | | Six Months* (%) | | One Year (%) | | Five Years (%) | | Ten Years (%) |
| | | | |
| Class A | | -1.31 | | -3.59 | | 1.78 | | 2.18 |
| | | | |
| Class C | | -1.68 | | -2.07 | | 1.68 | | 1.76 |
| | | | |
| Class Z | | -1.18 | | -0.10 | | 2.72 | | 2.78 |
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| Class R6 | | -1.15 | | -0.14 | | 2.73 | | 2.81 |
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| ICE BofA US 3-Month Treasury Bill Index | | | | | | |
| | | | |
| | 0.07 | | 0.08 | | 1.12 | | 0.63 |
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| ICE BofA USD 3-Month Deposit Offered Rate Constant Maturity Index | | | | |
| | | | |
| | -0.05 | | 0.03 | | 1.33 | | 0.87 |
| | | |
| Bloomberg US Aggregate Bond Index | | | | | | |
| | | | |
| | | -9.47 | | -8.51 | | 1.20 | | 1.73 |
*Not annualized
The returns in the tables do notreflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. The average annual total returns take into account applicable sales charges, which are described for each share class inthe table below.
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| | | | | | | | |
| | | | | |
| | | Class A | | Class C | | Class Z | | Class R6 |
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| Maximum initial sales charge | | 3.25% of the public offering price | | None | | None | | None |
| | | | | |
Contingent deferred sales charge (CDSC) (as a percentage of the lower of the original purchase price or the net asset value at redemption) | | 1.00% on sales of $500,000 or more made within 12 months of purchase | | 1.00% on sales made within 12 months of purchase | | None | | None |
| | | | | |
| Annual distribution and service (12b-1) fees (shown as a percentage of average daily netassets) | | 0.25% | | 1.00% | | None | | None |
Benchmark Definitions
ICE BofA US 3-MonthTreasury Bill Index*—The ICE BofA US 3-Month Treasury Bill Index tracks the performance of US dollar-denominated US Treasury bills publicly issued in the US domestic market with a remaining term to final maturity of 3 months.
*ICE BofA US 3-Month Treasury Bill Index has replaced ICE BofA US Dollar 3-Month Deposit Offered Rate Constant Maturity Index as the Fund’s primary benchmark due tothe pending discontinuation of LIBOR.
ICE BofA US Dollar 3-Month Deposit Offered Rate Constant Maturity Index—The ICE BofA US Dollar 3-Month DepositOffered Rate Constant Maturity Index is an unmanaged index which tracks the performance of a synthetic asset paying LIBOR to a stated maturity. The Index is based on the assumed purchase at par of a synthetic instrument having exactly its statedmaturity and with a coupon equal to that day’s fixing rate. That issue is assumed to be sold the following business day (priced at a yield equal to the current day fixing rate) and rolled into a new instrument.
Source: ICE BofA, used with permission.
Bloomberg US Aggregate BondIndex—The Bloomberg US Aggregate Bond Index is unmanaged and represents securities that are taxable and US dollar denominated. It covers the US investment-grade fixed rate bond market, with index components for government and corporatesecurities, mortgage pass-through securities, and asset-backed securities.
Investors cannot invest directly in an index. The returns for the Index would be lower ifthey included the effects of sales charges, operating expenses of a mutual fund, or taxes that may be paid by an investor.
PGIM Absolute Return BondFund 5
Your Fund’s Performance(continued)
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| | | |
| Distributions and Yields as of 4/30/22 | | | | | | |
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| | | Total Distributions Paid for Six Months ($) | | SEC 30-Day Subsidized Yield* (%) | | SEC 30-Day Unsubsidized Yield** (%) |
| | | |
| Class A | | 0.10 | | 2.74 | | 2.74 |
| | | |
| Class C | | 0.06 | | 2.08 | | 2.08 |
| | | |
| Class Z | | 0.11 | | 3.12 | | 3.12 |
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| Class R6 | | 0.11 | | 3.19 | | 3.19 |
*SEC 30-Day Subsidized Yield (%)—A standardized yield calculation created by the Securities and Exchange Commission,it reflects the income earned during a 30-day period, after the deduction of the Fund’s net expenses (net of any expense waivers or reimbursements). The investor experience is represented by the SEC 30-Day Subsidized Yield.
**SEC 30-Day Unsubsidized Yield (%)—A standardized yield calculation created by the Securities and Exchange Commission, it reflects the income earnedduring a 30-day period, after the deduction of the Fund’s gross expenses. The investor experience is represented by the SEC 30-Day Subsidized Yield.
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| Credit Quality expressed as a percentage of total investments as of 4/30/22 (%) | | | |
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| AAA | | | 33.3 | |
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| AA | | | 6.8 | |
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| A | | | 3.3 | |
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| BBB | | | 12.1 | |
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| BB | | | 13.2 | |
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| B | | | 4.8 | |
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| CCC | | | 3.5 | |
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| Not Rated | | | 5.3 | |
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| Cash/Cash Equivalents | | | 17.7 | |
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| Total | | | 100.0 | |
Credit ratings reflect the highest rating assigned by a nationally recognized statistical rating organization (NRSRO)such as Moody’s Investors Service, Inc. (Moody’s), S&P Global Ratings (S&P), or Fitch, Inc. (Fitch). Credit ratings reflect the common nomenclature used by both S&P and Fitch. Where applicable, ratings are converted to thecomparable S&P/Fitch rating tier nomenclature. These rating agencies are independent and are widely used. The Not Rated category consists of securities that have not been rated by an NRSRO. Credit ratings are subject to change.
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Fees and Expenses
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemptions, asapplicable, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses, as applicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in theFund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 held through thesix-month period ended April 30, 2022. The example is for illustrative purposes only; you should consult the Prospectus for information on initial and subsequent minimum investment requirements.
Actual Expenses
The first line for each share class in the table on thefollowing page provides information about actual account values and actual expenses. You may use the information on this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your accountvalue by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on youraccount during this period.
Hypothetical Example for Comparison Purposes
The second line for each share class in the table on the following page provides information about hypothetical account values and hypothetical expenses based on theFund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending accountbalance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in theshareholder reports of the other funds.
The Fund’s transfer agent may charge additional fees to holders of certain accounts that are not included in theexpenses shown in the table on the following page. These fees apply to individual retirement accounts (IRAs) and Section 403(b) accounts. As of the close of the six-month period covered by the table, IRA fees included an annual maintenance feeof $15 per account (subject to a maximum annual maintenance fee of $25 for all accounts held by the same shareholder). Section 403(b) accounts are charged an annual $25 fiduciary maintenance fee. Some of the fees may vary in amount, or may bewaived, based on your total account balance or the number of PGIM funds, including the Fund, that you own. You should consider the additional fees that were charged to your Fund account over the six-month period when you estimate the total ongoingexpenses paid over the period and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information
PGIM Absolute Return BondFund 7
Fees and Expenses (continued)
provided in the expense table. Additional fees have the effect of reducing investment returns.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads).Therefore, the second line for each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, yourcosts would have been higher.
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| PGIM Absolute Return Bond Fund | | Beginning Account Value November 1, 2021 | | Ending
Account Value April 30, 2022 | | Annualized Expense Ratio Based on the Six-Month Period | | Expenses Paid During the
Six-Month Period* |
| | | | | |
| Class A | | Actual | | $1,000.00 | | $ 986.90 | | 0.97% | | $4.78 |
| | | | | |
| | Hypothetical | | $1,000.00 | | $1,019.98 | | 0.97% | | $4.86 |
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| Class C | | Actual | | $1,000.00 | | $ 983.20 | | 1.75% | | $8.61 |
| | | | | |
| | Hypothetical | | $1,000.00 | | $1,016.12 | | 1.75% | | $8.75 |
| | | | | |
| Class Z | | Actual | | $1,000.00 | | $ 988.20 | | 0.72% | | $3.55 |
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| | Hypothetical | | $1,000.00 | | $1,021.22 | | 0.72% | | $3.61 |
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| Class R6 | | Actual | | $1,000.00 | | $ 988.50 | | 0.64% | | $3.16 |
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| | | Hypothetical | | $1,000.00 | | $1,021.62 | | 0.64% | | $3.21 |
*Fund expenses (net of fee waivers or subsidies, if any) for each share class are equal to the annualized expenseratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by the 181 days in the six-month period ended April 30, 2022, and divided by the 365 days in the Fund’s fiscal yearending October 31, 2022 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
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Schedule of Investments (unaudited)
as of April 30, 2022
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| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
| | | | |
| LONG-TERM INVESTMENTS 80.7% | | | | | | | | | | | | | | | | |
| | | | |
| ASSET-BACKED SECURITIES 22.8% | | | | | | | | | | | | | | | | |
| | | | |
| Automobiles 0.2% | | | | | | | | | | | | | | | | |
| | | | |
| Hertz Vehicle Financing III LP, | | | | | | | | | | | | | | | | |
| Series 2021-02A, Class B, 144A | | | 2.120% | | | | 12/27/27 | | | | 200 | | | $ | 180,637 | |
| OneMain Direct Auto Receivables Trust, | | | | | | | | | | | | | | | | |
| Series 2019-01A, Class B, 144A | | | 3.950 | | | | 11/14/28 | | | | 1,700 | | | | 1,680,216 | |
| | | | |
| | | | | | | | | | | | | | | 1,860,853 | |
| | | | |
| Collateralized Loan Obligations 17.9% | | | | | | | | | | | | | | | | |
| | | | |
| Ares European CLO DAC (Ireland), | | | | | | | | | | | | | | | | |
| Series 2013-06A, Class B1RR, 144A, 3 Month EURIBOR + 1.250% (Cap N/A, Floor 1.250%) | | | 1.250(c) | | | | 04/15/30 | | | EUR | 2,500 | | | | 2,586,238 | |
| Bain Capital Credit CLO Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
| Series 2022-01A, Class A1, 144A, 3 Month Term SOFR + 1.320% (Cap N/A, Floor 1.320%) | | | 2.219(c) | | | | 04/18/35 | | | | 9,750 | | | | 9,603,751 | |
| Barings Euro CLO DAC (Ireland), | | | | | | | | | | | | | | | | |
| Series 2020-01A, Class AR, 144A, 3 Month EURIBOR + 0.980% (Cap N/A, Floor 0.980%) | | | 0.980(c) | | | | 10/21/34 | | | EUR | 3,000 | | | | 3,127,547 | |
| Carlyle Euro CLO DAC (Ireland), | | | | | | | | | | | | | | | | |
| Series 2019-01A, Class A1R, 144A, 3 Month EURIBOR + 0.750% (Cap N/A, Floor 0.750%) | | | 0.750(c) | | | | 03/15/32 | | | EUR | 1,750 | | | | 1,824,864 | |
| Series 2019-01A, Class A2RB, 144A | | | 2.100 | | | | 03/15/32 | | | EUR | 6,500 | | | | 6,741,295 | |
| Carlyle Global Market Strategies CLO Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
| Series 2015-05A, Class A1RR, 144A, 3 Month LIBOR + 1.080% (Cap N/A, Floor 1.080%) | | | 2.143(c) | | | | 01/20/32 | | | | 6,250 | | | | 6,178,825 | |
| Crown City CLO Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
| Series 2020-02A, Class A1AR, 144A, 3 Month Term SOFR + 1.340% (Cap N/A, Floor 1.340%) | | | 2.191(c) | | | | 04/20/35 | | | | 2,750 | | | | 2,717,084 | |
| Elevation CLO Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
| Series 2017-06A, Class A1, 144A, 3 Month LIBOR + 1.280% (Cap N/A, Floor 1.280%) | | | 2.324(c) | | | | 07/15/29 | | | | 2,396 | | | | 2,390,501 | |
| Ellington CLO Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
| Series 2017-02A, Class A, 144A, 3 Month LIBOR + 1.700% (Cap N/A, Floor 1.700%) | | | 2.206(c) | | | | 02/15/29 | | | | 13,011 | | | | 13,033,900 | |
| Generate CLO Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
| Series 02A, Class AR, 144A, 3 Month LIBOR + 1.150% (Cap N/A, Floor 1.150%) | | | 2.286(c) | | | | 01/22/31 | | | | 3,000 | | | | 2,983,697 | |
| KKR CLO Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
| Series 11, Class AR, 144A, 3 Month LIBOR + 1.180% (Cap N/A, Floor 1.180%) | | | 2.224(c) | | | | 01/15/31 | | | | 8,000 | | | | 7,969,799 | |
See Notes to Financial Statements.
PGIM Absolute Return Bond Fund 9
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
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| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
| | | | |
| ASSET-BACKED SECURITIES (Continued) | | | | | | | | | | | | | | | | |
| | | | |
| Collateralized Loan Obligations (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
| KKR CLO Ltd. (Cayman Islands), (cont’d.) | | | | | | | | | | | | | | | | |
| Series 32A, Class A1, 144A, 3 Month LIBOR + 1.320% (Cap N/A, Floor 1.320%) | | | 2.364%(c) | | | | 01/15/32 | | | | 5,000 | | | $ | 4,974,769 | |
| Madison Park Funding Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
| Series 2019-33A, Class AR, 144A, 3 Month Term SOFR + 1.290% (Cap N/A, Floor 1.290%) | | | 2.136(c) | | | | 10/15/32 | | | | 5,500 | | | | 5,452,284 | |
| Series 2021-59A, Class A, 144A, 3 Month LIBOR + 1.140% (Cap N/A, Floor 1.140%) | | | 1.385(c) | | | | 01/18/34 | | | | 9,500 | | | | 9,403,229 | |
| Medalist Partners Corporate Finance CLO Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
| Series 2021-01A, Class A1A, 144A, 3 Month LIBOR + 1.230% (Cap N/A, Floor 1.230%) | | | 2.293(c) | | | | 10/20/34 | | | | 5,000 | | | | 4,944,437 | |
| MidOcean Credit CLO (Cayman Islands), | | | | | | | | | | | | | | | | |
| Series 2014-03A, Class A1R, 144A, 3 Month LIBOR + 1.120% (Cap N/A, Floor 1.120%) | | | 2.218(c) | | | | 04/21/31 | | | | 7,411 | | | | 7,368,679 | |
| Series 2014-03A, Class BR, 144A, 3 Month LIBOR + 1.800% (Cap N/A, Floor 1.800%) | | | 2.898(c) | | | | 04/21/31 | | | | 18,000 | | | | 17,603,797 | |
| OZLM Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
| Series 2014-06A, Class A2AS, 144A, 3 Month LIBOR + 1.750% (Cap N/A, Floor 0.000%) | | | 2.794(c) | | | | 04/17/31 | | | | 4,000 | | | | 3,926,733 | |
| Palmer Square CLO Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
| Series 2014-01A, Class A1R2, 144A, 3 Month LIBOR + 1.130% (Cap N/A, Floor 1.130%) | | | 2.174(c) | | | | 01/17/31 | | | | 5,000 | | | | 4,974,242 | |
| Series 2018-02A, Class A1A, 144A, 3 Month LIBOR + 1.100% (Cap N/A, Floor 0.000%) | | | 2.144(c) | | | | 07/16/31 | | | | 6,750 | | | | 6,701,143 | |
| Penta CLO DAC (Ireland), | | | | | | | | | | | | | | | | |
| Series 2018-05A, Class B1R, 144A, 3 Month EURIBOR + 1.550% (Cap N/A, Floor 1.550%) | | | 1.550(c) | | | | 04/20/35 | | | EUR | 10,000 | | | | 10,333,142 | |
| Romark CLO Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
| Series 2018-02A, Class A1, 144A, 3 Month LIBOR + 1.175% (Cap N/A, Floor 1.175%) | | | 2.359(c) | | | | 07/25/31 | | | | 5,000 | | | | 4,948,325 | |
| Romark WM-R Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
| Series 2018-01A, Class A1, 144A, 3 Month LIBOR + 1.030% (Cap N/A, Floor 0.000%) | | | 2.093(c) | | | | 04/20/31 | | | | 1,484 | | | | 1,471,580 | |
| St. Paul’s CLO DAC (Ireland), | | | | | | | | | | | | | | | | |
| Series 02A, Class AR4, 144A, 3 Month EURIBOR + 0.980% (Cap N/A, Floor 0.980%) | | | 0.980(c) | | | | 10/25/35 | | | EUR | 8,000 | | | | 8,330,433 | |
| Strata CLO Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
| Series 2018-01A, Class A, 144A, 3 Month LIBOR + 1.590% (Cap N/A, Floor 1.590%) | | | 2.634(c) | | | | 01/15/31 | | | | 19,000 | | | | 18,960,581 | |
See Notes to Financial Statements.
10
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
| | | | |
| ASSET-BACKED SECURITIES (Continued) | | | | | | | | | | | | | | | | |
| | | | |
| Collateralized Loan Obligations (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
| Wellfleet CLO Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
| Series 2017-03A, Class A1, 144A, 3 Month LIBOR + 1.150% (Cap N/A, Floor 1.150%) | | | 2.194%(c) | | | | 01/17/31 | | | | 10,500 | | | $ | 10,435,239 | |
| Zais CLO Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
| Series 2015-03A, Class A2R, 144A, 3 Month LIBOR + 2.190% (Cap N/A, Floor 0.000%) | | | 3.234(c) | | | | 07/15/31 | | | | 11,300 | | | | 11,214,065 | |
| Series 2017-02A, Class A, 144A, 3 Month LIBOR + 1.290% (Cap N/A, Floor 0.000%) | | | 2.334(c) | | | | 04/15/30 | | | | 4,642 | | | | 4,630,459 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 194,830,638 | |
| | | | |
| Consumer Loans 0.4% | | | | | | | | | | | | | | | | |
| | | | |
| Lendmark Funding Trust, | | | | | | | | | | | | | | | | |
| Series 2021-01A, Class C, 144A | | | 3.410 | | | | 11/20/31 | | | | 200 | | | | 177,744 | |
| Oportun Funding XIII LLC, | | | | | | | | | | | | | | | | |
| Series 2019-A, Class B, 144A | | | 3.870 | | | | 08/08/25 | | | | 4,860 | | | | 4,786,684 | |
| | | | |
| | | | | | | | | | | | | | | 4,964,428 | |
| | | | |
| Home Equity Loans 1.1% | | | | | | | | | | | | | | | | |
| | | | |
| Accredited Mortgage Loan Trust, | | | | | | | | | | | | | | | | |
| Series 2004-03, Class 2A2, 1 Month LIBOR + 1.200% (Cap 13.000%, Floor 1.200%) | | | 1.868(c) | | | | 10/25/34 | | | | 1,094 | | | | 1,082,812 | |
| Asset-Backed Securities Corp. Home Equity Loan Trust, | | | | | | | | | | | | | | | | |
| Series 2003-HE06, Class A2, 1 Month LIBOR + 0.680% (Cap N/A, Floor 0.680%) | | | 1.348(c) | | | | 11/25/33 | | | | 1,543 | | | | 1,518,727 | |
| Series 2003-HE06, Class A3B, 1 Month LIBOR + 0.960% (Cap N/A, Floor 0.960%) | | | 1.628(c) | | | | 11/25/33 | | | | 3,451 | | | | 3,299,587 | |
| Bear Stearns Asset-Backed Securities I Trust, | | | | | | | | | | | | | | | | |
| Series 2004-HE11, Class M2, 1 Month LIBOR + 1.575% (Cap N/A, Floor 1.575%) | | | 2.243(c) | | | | 12/25/34 | | | | — | (r) | | | 378 | |
| Bear Stearns Asset-Backed Securities Trust, | | | | | | | | | | | | | | | | |
| Series 2002-02, Class A1, 1 Month LIBOR + 0.660% (Cap 11.000%, Floor 0.660%) | | | 1.328(c) | | | | 10/25/32 | | | | 395 | | | | 391,074 | |
| Series 2003-03, Class A2, 1 Month LIBOR + 1.180% (Cap 11.000%, Floor 1.180%) | | | 1.848(c) | | | | 06/25/43 | | | | 78 | | | | 75,719 | |
| Series 2003-HE01, Class M1, 1 Month LIBOR + 1.095% (Cap N/A, Floor 1.095%) | | | 1.763(c) | | | | 01/25/34 | | | | 2,351 | | | | 2,329,381 | |
| Home Equity Asset Trust, | | | | | | | | | | | | | | | | |
| Series 2004-07, Class A2, 1 Month LIBOR + 0.840% (Cap N/A, Floor 0.840%) | | | 1.508(c) | | | | 01/25/35 | | | | 1,050 | | | | 1,018,711 | |
See Notes to Financial Statements.
PGIM Absolute Return Bond Fund 11
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
| | | | |
| ASSET-BACKED SECURITIES (Continued) | | | | | | | | | | | | | | | | |
| | | | |
| Home Equity Loans (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
| MASTR Asset-Backed Securities Trust, | | | | | | | | | | | | | | | | |
| Series 2003-WMC02, Class M2, 1 Month LIBOR + 2.475% (Cap N/A, Floor 2.475%) | | | 3.143%(c) | | | | 08/25/33 | | | | 744 | | | $ | 743,663 | |
| Morgan Stanley ABS Capital I, Inc. Trust, | | | | | | | | | | | | | | | | |
| Series 2003-HE03, Class M1, 1 Month LIBOR + 1.020% (Cap N/A, Floor 1.020%) | | | 1.688(c) | | | | 10/25/33 | | | | 862 | | | | 853,219 | |
| Series 2003-NC08, Class M1, 1 Month LIBOR + 1.050% (Cap N/A, Floor 1.050%) | | | 1.718(c) | | | | 09/25/33 | | | | 279 | | | | 275,953 | |
| Series 2003-NC10, Class M1, 1 Month LIBOR + 1.020% (Cap N/A, Floor 1.020%) | | | 1.688(c) | | | | 10/25/33 | | | | 303 | | | | 300,015 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 11,889,239 | |
| | | | |
| Other 0.3% | | | | | | | | | | | | | | | | |
| | | | |
| PNMAC FMSR Issuer Trust, | | | | | | | | | | | | | | | | |
| Series 2018-FT01, Class A, 144A, 1 Month LIBOR + 2.350% (Cap N/A, Floor 0.000%) | | | 3.018(c) | | | | 04/25/23 | | | | 3,200 | | | | 3,160,882 | |
| | | | |
| Residential Mortgage-Backed Securities 1.4% | | | | | | | | | | | | | | | | |
| | | | |
| Chase Funding Trust, | | | | | | | | | | | | | | | | |
| Series 2002-03, Class 2A1, 1 Month LIBOR + 0.640% (Cap N/A, Floor 0.640%) | | | 1.308(c) | | | | 08/25/32 | | | | 245 | | | | 234,930 | |
| Series 2003-04, Class 1A5 | | | 4.956 | | | | 05/25/33 | | | | 359 | | | | 337,228 | |
| Citigroup Mortgage Loan Trust, Inc., | | | | | | | | | | | | | | | | |
| Series 2005-OPT01, Class M1, 1 Month LIBOR + 0.630% (Cap N/A, Floor 0.630%) | | | 1.298(c) | | | | 02/25/35 | | | | 191 | | | | 184,031 | |
| Series 2005-WF01, Class A5 | | | 5.010(cc) | | | | 11/25/34 | | | | — | (r) | | | 219 | |
| Countrywide Asset-Backed Certificates, | | | | | | | | | | | | | | | | |
| Series 2003-BC04, Class M1, 1 Month LIBOR + 1.050% (Cap N/A, Floor 1.050%) | | | 1.718(c) | | | | 07/25/33 | | | | 421 | | | | 416,902 | |
| Series 2004-01, Class M1, 1 Month LIBOR + 0.750% (Cap N/A, Floor 0.750%) | | | 1.418(c) | | | | 03/25/34 | | | | 19 | | | | 18,281 | |
| Series 2004-BC04, Class M1, 1 Month LIBOR + 1.050% (Cap N/A, Floor 1.050%) | | | 1.718(c) | | | | 11/25/34 | | | | 194 | | | | 193,306 | |
| Credit-Based Asset Servicing & Securitization LLC, | | | | | | | | | | | | | | | | |
| Series 2003-CB03, Class AF1 | | | 3.379 | | | | 12/25/32 | | | | 81 | | | | 77,878 | |
| Finance America Mortgage Loan Trust, | | | | | | | | | | | | | | | | |
| Series 2003-01, Class M1, 1 Month LIBOR + 1.050% (Cap N/A, Floor 1.050%) | | | 1.718(c) | | | | 09/25/33 | | | | 1,160 | | | | 1,127,769 | |
| First Franklin Mortgage Loan Trust, | | | | | | | | | | | | | | | | |
| Series 2004-FF05, Class A2, 1 Month LIBOR + 0.760% (Cap N/A, Floor 0.760%) | | | 1.428(c) | | | | 08/25/34 | | | | 506 | | | | 497,856 | |
See Notes to Financial Statements.
12
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
| | | | |
| ASSET-BACKED SECURITIES (Continued) | | | | | | | | | | | | | | | | |
| | | | |
| Residential Mortgage-Backed Securities (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
| Fremont Home Loan Trust, | | | | | | | | | | | | | | | | |
| Series 2004-04, Class M1, 1 Month LIBOR + 0.795% (Cap N/A, Floor 0.795%) | | | 1.463%(c) | | | | 03/25/35 | | | | 1,786 | | | $ | 1,729,752 | |
| Long Beach Mortgage Loan Trust, | | | | | | | | | | | | | | | | |
| Series 2004-02, Class A1, 1 Month LIBOR + 0.440% (Cap N/A, Floor 0.440%) | | | 1.108(c) | | | | 06/25/34 | | | | 639 | | | | 613,262 | |
| Morgan Stanley ABS Capital I, Inc. Trust, | | | | | | | | | | | | | | | | |
| Series 2004-NC05, Class M1, 1 Month LIBOR + 0.900% (Cap N/A, Floor 0.900%) | | | 1.568(c) | | | | 05/25/34 | | | | 179 | | | | 171,218 | |
| Rathlin Residential DAC (Ireland), | | | | | | | | | | | | | | | | |
| Series 2021-01A, Class A, 144A, 1 Month EURIBOR + 2.000% | | | 1.500(c) | | | | 09/27/75 | | | EUR | 1,563 | | | | 1,615,217 | |
| Structured Asset Investment Loan Trust, | | | | | | | | | | | | | | | | |
| Series 2004-BNC01, Class A2, 1 Month LIBOR + 1.000% (Cap N/A, Floor 1.000%) | | | 1.668(c) | | | | 09/25/34 | | | | 1,881 | | | | 1,813,113 | |
| TFS (Spain), | | | | | | | | | | | | | | | | |
| Series 2018-03^ | | | 0.000(s) | | | | 04/16/40 | | | EUR | — | (r) | | | 6,952 | |
| Series 2018-03, Class A1, 1 Month EURIBOR + 3.000% | | | 3.000(c) | | | | 04/16/23 | | | EUR | 6,279 | | | | 6,624,197 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 15,662,111 | |
| | | | |
| Student Loans 1.5% | | | | | | | | | | | | | | | | |
| | | | |
| Laurel Road Prime Student Loan Trust, | | | | | | | | | | | | | | | | |
| Series 2018-D, Class A, 144A | | | 0.000(cc) | | | | 11/25/43 | | | | 3,103 | | | | 3,060,913 | |
| Series 2019-A, Class R, 144A | | | 0.000 | | | | 10/25/48 | | | | 2,505 | | | | 549,137 | |
| SoFi Alternative Trust, | | | | | | | | | | | | | | | | |
| Series 2019-B, Class PT, 144A | | | 0.000(cc) | | | | 12/15/45 | | | | 3,818 | | | | 3,777,553 | |
| Series 2019-D, Class 1PT, 144A | | | 3.026(cc) | | | | 01/16/46 | | | | 3,904 | | | | 3,851,317 | |
| Series 2019-F, Class PT1, 144A | | | 3.932(cc) | | | | 02/15/45 | | | | 4,626 | | | | 4,510,619 | |
| SoFi RR Funding II Trust, | | | | | | | | | | | | | | | | |
| Series 2019-01, Class A, 144A, 1 Month LIBOR + 1.250% (Cap N/A, Floor 1.250%) | | | 1.918(c) | | | | 11/29/24 | | | | 801 | | | | 800,111 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 16,549,650 | |
| | | | |
| TOTAL ASSET-BACKED SECURITIES
(cost $255,813,481) | | | | | | | | | | | | | | | 248,917,801 | |
See Notes to Financial Statements.
PGIM Absolute Return Bond Fund 13
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
| | | | |
| BANK LOANS 1.8% | | | | | | | | | | | | | | | | |
| | | | |
| Airlines 0.1% | | | | | | | | | | | | | | | | |
| | | | |
| United Airlines, Inc., | | | | | | | | | | | | | | | | |
| Class B Term Loan, 3 Month LIBOR + 3.750% | | | 4.500%(c) | | | | 04/21/28 | | | | 497 | | | $ | 492,178 | |
| | | | |
| Computers 0.1% | | | | | | | | | | | | | | | | |
| | | | |
| McAfee Corp., | | | | | | | | | | | | | | | | |
| Tranche B-1 Term Loan, Term SOFR + 4.000% | | | 4.500(c) | | | | 03/01/29 | | | | 1,025 | | | | 1,004,756 | |
| | | | |
| Internet 0.2% | | | | | | | | | | | | | | | | |
| | | | |
| Speedster Bidco GmbH (Germany), | | | | | | | | | | | | | | | | |
| Second Lien Term Loan, 3 Month EURIBOR + 6.000% | | | 6.000(c) | | | | 03/31/28 | | | EUR | 2,400 | | | | 2,515,266 | |
| | | | |
| Investment Companies 0.2% | | | | | | | | | | | | | | | | |
| | | | |
| Rainbow Midco Ltd. (United Kingdom), | | | | | | | | | | | | | | | | |
| Term Loan^ | | | —(p) | | | | 01/31/30 | | | | 2,500 | | | | 2,592,368 | |
| | | | |
| Media 0.0% | | | | | | | | | | | | | | | | |
| | | | |
| Diamond Sports Group LLC, | | | | | | | | | | | | | | | | |
| Second Lien Term Loan, Term SOFR + 3.250% | | | 3.656(c) | | | | 08/24/26 | | | | 376 | | | | 123,350 | |
| Term Loan, Term SOFR + 8.000% | | | 9.000(c) | | | | 05/25/26 | | | | 41 | | | | 41,577 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 164,927 | |
| | | | |
| Metal Fabricate/Hardware 0.1% | | | | | | | | | | | | | | | | |
| | | | |
| Tank Holding Corp., | | | | | | | | | | | | | | | | |
| Initial Term Loan, SOFR + 6.000%^ | | | 6.800(c) | | | | 03/31/28 | | | | 1,150 | | | | 1,129,875 | |
| | | | |
| Oil & Gas 0.2% | | | | | | | | | | | | | | | | |
| | | | |
| Ascent Resources Utica Holdings LLC, | | | | | | | | | | | | | | | | |
| Second Lien Term Loan, 3 Month LIBOR + 9.000% | | | 10.021(c) | | | | 11/01/25 | | | | 1,858 | | | | 1,983,415 | |
| | | | |
| Retail 0.7% | | | | | | | | | | | | | | | | |
| | | | |
| CD&R Firefly Bidco Ltd. (United Kingdom), | | | | | | | | | | | | | | | | |
| Initial Term Loan, SONIA + 8.356%^ | | | 8.551(c) | | | | 06/19/26 | | | GBP | 3,300 | | | | 4,149,585 | |
See Notes to Financial Statements.
14
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
| | | | |
| BANK LOANS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
| Retail (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
| Constellation Automotive Group Ltd. (United Kingdom), | | | | | | | | | | | | | | | | |
| Facility 1 Loan, SONIA + 7.500% | | | 8.088%(c) | | | | 07/27/29 | | | GBP | 1,025 | | | $ | 1,265,525 | |
| Stonegate Pub Co. Ltd., | | | | | | | | | | | | | | | | |
| Second Lien Delayed Draw Term Loan, 3 Month GBP LIBOR + 8.500%^ | | | 8.767(c) | | | | 03/06/28 | | | GBP | 1,900 | | | | 2,365,264 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 7,780,374 | |
| | | | |
| Telecommunications 0.2% | | | | | | | | | | | | | | | | |
| | | | |
| West Corp., | | | | | | | | | | | | | | | | |
| Initial Term B Loan, 1 - 3 Month LIBOR + 3.500% | | | 5.000(c) | | | | 10/10/24 | | | | 2,359 | | | | 2,202,921 | |
| | | | | | | | | | | | | | | | |
| | | | |
| TOTAL BANK LOANS
(cost $20,741,356) | | | | | | | | | | | | | | | 19,866,080 | |
| | | | |
| COMMERCIAL MORTGAGE-BACKED SECURITIES 5.9% | | | | | | | | | | | | | | | | |
| 20 Times Square Trust, | | | | | | | | | | | | | | | | |
| Series 2018-20TS, Class G, 144A | | | 3.203(cc) | | | | 05/15/35 | | | | 2,700 | | | | 2,498,399 | |
| Series 2018-20TS, Class H, 144A | | | 3.203(cc) | | | | 05/15/35 | | | | 2,700 | | | | 2,472,978 | |
| Barclays Commercial Mortgage Securities Trust, | | | | | | | | | | | | | | | | |
| Series 2018-TALL, Class D, 144A, 1 Month LIBOR + 1.449% (Cap N/A, Floor 1.449%) | | | 2.003(c) | | | | 03/15/37 | | | | 11,875 | | | | 10,984,484 | |
| BX Commercial Mortgage Trust, | | | | | | | | | | | | | | | | |
| Series 2019-XL, Class J, 144A, 1 Month LIBOR + 2.650% (Cap N/A, Floor 2.650%) | | | 3.204(c) | | | | 10/15/36 | | | | 5,653 | | | | 5,517,552 | |
| Commercial Mortgage Trust, | | | | | | | | | | | | | | | | |
| Series 2015-LC19, Class XB, IO, 144A | | | 0.335(cc) | | | | 02/10/48 | | | | 123,049 | | | | 789,224 | |
| DBWF Mortgage Trust, | | | | | | | | | | | | | | | | |
| Series 2016-85T, Class E, 144A | | | 3.935(cc) | | | | 12/10/36 | | | | 15,500 | | | | 13,578,397 | |
| FHLMC Multifamily Structured Pass-Through Certificates, | | | | | | | | | | | | | | | | |
| Series K021, Class X1, IO | | | 1.502(cc) | | | | 06/25/22 | | | | 1,480 | | | | 109 | |
| Series K025, Class X1, IO | | | 0.901(cc) | | | | 10/25/22 | | | | 78,350 | | | | 194,536 | |
| Series K055, Class X1, IO | | | 1.486(cc) | | | | 03/25/26 | | | | 21,838 | | | | 953,646 | |
| Series KC02, Class X1, IO | | | 0.516(cc) | | | | 03/25/24 | | | | 122,356 | | | | 709,827 | |
| GS Mortgage Securities Corp., | | | | | | | | | | | | | | | | |
| Series 2013-GC10, Class XB, IO, 144A | | | 0.633(cc) | | | | 02/10/46 | | | | 103,126 | | | | 384,608 | |
| GS Mortgage Securities Trust, | | | | | | | | | | | | | | | | |
| Series 2014-GC20, Class XB, IO | | | 0.632(cc) | | | | 04/10/47 | | | | 28,307 | | | | 233,604 | |
| Independence Plaza Trust, | | | | | | | | | | | | | | | | |
| Series 2018-INDP, Class E, 144A | | | 4.996 | | | | 07/10/35 | | | | 5,200 | | | | 4,889,741 | |
See Notes to Financial Statements.
PGIM Absolute Return Bond Fund 15
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | Value | |
| | |
| COMMERCIAL MORTGAGE-BACKED SECURITIES (Continued) | | | | | | | | | |
| JPMBB Commercial Mortgage Securities Trust, | | | | | | | | | | | | | | | | |
| Series 2014-C21, Class XB, IO | | | 0.457%(cc) | | | | 08/15/47 | | | | 45,056 | | | $ | 316,203 | |
| Series 2015-C27, Class XB, IO | | | 0.546(cc) | | | | 02/15/48 | | | | 52,766 | | | | 572,632 | |
| JPMorgan Chase Commercial Mortgage Securities Trust, | | | | | | | | | | | | | | | | |
| Series 2013-LC11, Class XB, IO | | | 0.647(cc) | | | | 04/15/46 | | | | 34,956 | | | | 172,425 | |
| Series 2018-AON, Class E, 144A | | | 4.767(cc) | | | | 07/05/31 | | | | 7,950 | | | | 7,780,029 | |
| Morgan Stanley Bank of America Merrill Lynch Trust, | | | | | | | | | | | | | | | | |
| Series 2012-C05, Class XB, IO, 144A | | | 0.400(cc) | | | | 08/15/45 | | | | 65,968 | | | | 8,015 | |
| Series 2013-C08, Class XB, IO, 144A | | | 0.497(cc) | | | | 12/15/48 | | | | 68,276 | | | | 200,301 | |
| Salus European Loan Conduit DAC (United Kingdom), | | | | | | | | | | | | | | | | |
| Series 33A, Class A, 144A, 3 Month GBP LIBOR + 1.500% (Cap 6.500%, Floor 1.500%) | | | 2.713(c) | | | | 01/23/29 | | | GBP | 9,500 | | | | 11,945,021 | |
| UBS-Barclays Commercial Mortgage Trust, | | | | | | | | | | | | | | | | |
| Series 2013-C06, Class XB, IO, 144A | | | 0.464(cc) | | | | 04/10/46 | | | | 140,883 | | | | 463,674 | |
| | | | | | | | | | | | | | | | |
| | |
| TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES
(cost $67,152,980) | | | | | | | | 64,665,405 | |
| | | | | | | | | | | | | | | | |
| | | | |
| CONVERTIBLE BOND 0.0% | | | | | | | | | | | | | | | | |
| | | | |
| Telecommunications | | | | | | | | | | | | | | | | |
| Digicel Group Holdings Ltd. (Jamaica), | | | | | | | | | | | | | | | | |
| Sub. Notes, 144A, Cash coupon 7.000% or PIK N/A
(cost $5,781) | | | 7.000 | | | | 05/16/22(oo) | | | | 44 | | | | 32,115 | |
| | | | | | | | | | | | | | | | |
| | | | |
| CORPORATE BONDS 24.4% | | | | | | | | | | | | | | | | |
| | | | |
| Advertising 0.0% | | | | | | | | | | | | | | | | |
| National CineMedia LLC, | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes(a) | | | 5.750 | | | | 08/15/26 | | | | 350 | | | | 250,003 | |
| | | | |
| Aerospace & Defense 0.9% | | | | | | | | | | | | | | | | |
| Bombardier, Inc. (Canada), | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, 144A | | | 7.500 | | | | 12/01/24 | | | | 4,771 | | | | 4,762,986 | |
| Sr. Unsec’d. Notes, 144A | | | 7.875 | | | | 04/15/27 | | | | 5,675 | | | | 5,288,013 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 10,050,999 | |
See Notes to Financial Statements.
16
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | Value | |
| | | | |
| CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
| Agriculture 0.3% | | | | | | | | | | | | | | | | |
| Tereos Finance Groupe I SA (France), | | | | | | | | | | | | | | | | |
| Bonds, 144A | | | 4.750% | | | | 04/30/27 | | | EUR | 2,700 | | | $ | 2,671,404 | |
| Vector Group Ltd., | | | | | | | | | | | | | | | | |
| Sr. Sec’d. Notes, 144A | | | 5.750 | | | | 02/01/29 | | | | 475 | | | | 418,071 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 3,089,475 | |
| | | | |
| Airlines 0.4% | | | | | | | | | | | | | | | | |
| American Airlines 2013-1 Class A Pass-Through Trust, | | | | | | | | | | | | | | | | |
| Pass-Through Certificates | | | 4.000 | | | | 01/15/27 | | | | 1,635 | | | | 1,537,871 | |
| Continental Airlines 2012-2 Class A Pass-Through Trust, | | | | | | | | | | | | | | | | |
| Pass-Through Certificates | | | 4.000 | | | | 04/29/26 | | | | 72 | | | | 71,116 | |
| United Airlines 2013-1 Class A Pass-Through Trust, | | | | | | | | | | | | | | | | |
| Pass-Through Certificates | | | 4.300 | | | | 02/15/27 | | | | 1,539 | | | | 1,519,040 | |
| United Airlines, Inc., | | | | | | | | | | | | | | | | |
| Sr. Sec’d. Notes, 144A | | | 4.375 | | | | 04/15/26 | | | | 645 | | | | 621,522 | |
| Sr. Sec’d. Notes, 144A | | | 4.625 | | | | 04/15/29 | | | | 170 | | | | 156,193 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 3,905,742 | |
| | | | |
| Auto Manufacturers 0.2% | | | | | | | | | | | | | | | | |
| Ford Motor Co., | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 3.250 | | | | 02/12/32 | | | | 875 | | | | 710,480 | |
| General Motors Co., | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 6.250 | | | | 10/02/43 | | | | 1,555 | | | | 1,606,390 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 2,316,870 | |
| | | | |
| Auto Parts & Equipment 0.4% | | | | | | | | | | | | | | | | |
| Adient Global Holdings Ltd., | | | | | | | | | | | | | | | | |
| Gtd. Notes, 144A(a) | | | 4.875 | | | | 08/15/26 | | | | 1,900 | | | | 1,695,931 | |
| American Axle & Manufacturing, Inc., | | | | | | | | | | | | | | | | |
| Gtd. Notes(a) | | | 6.250 | | | | 03/15/26 | | | | 1,190 | | | | 1,148,861 | |
| Cooper-Standard Automotive, Inc., | | | | | | | | | | | | | | | | |
| Gtd. Notes, 144A(a) | | | 5.625 | | | | 11/15/26 | | | | 1,800 | | | | 842,897 | |
| Dana, Inc., | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 4.500 | | | | 02/15/32 | | | | 800 | | | | 662,027 | |
| Nemak SAB de CV (Mexico), | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, 144A | | | 3.625 | | | | 06/28/31 | | | | 350 | | | | 285,567 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 4,635,283 | |
See Notes to Financial Statements.
PGIM Absolute Return Bond Fund 17
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | Value | |
| | | | |
| CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
| Banks 4.5% | | | | | | | | | | | | | | | | |
| Banco de Credito del Peru S.A. (Peru), | | | | | | | | | | | | | | | | |
| Sub. Notes, 144A, MTN(a) | | | 3.250%(ff) | | | | 09/30/31 | | | | 1,055 | | | $ | 950,721 | |
| Banco Mercantil del Norte SA (Mexico), | | | | | | | | | | | | | | | | |
| Jr. Sub. Notes, 144A | | | 6.625(ff) | | | | 01/24/32(oo) | | | | 1,110 | | | | 1,002,726 | |
| Bangkok Bank PCL (Thailand), | | | | | | | | | | | | | | | | |
| Sub. Notes, 144A | | | 3.466(ff) | | | | 09/23/36 | | | | 945 | | | | 812,862 | |
| Bank of America Corp., | | | | | | | | | | | | | | | | |
| Jr. Sub. Notes, Series JJ | | | 5.125(ff) | | | | 06/20/24(oo) | | | | 6,850 | | | | 6,691,970 | |
| Jr. Sub. Notes, Series MM | | | 4.300(ff) | | | | 01/28/25(oo) | | | | 5,545 | | | | 5,081,385 | |
| Sr. Unsec’d. Notes, MTN | | | 4.271(ff) | | | | 07/23/29 | | | | 1,450 | | | | 1,425,822 | |
| Citigroup, Inc., | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 2.976(ff) | | | | 11/05/30 | | | | 870 | | | | 778,345 | |
| Sr. Unsec’d. Notes | | | 3.200 | | | | 10/21/26 | | | | 1,145 | | | | 1,103,285 | |
| Sr. Unsec’d. Notes | | | 3.785(ff) | | | | 03/17/33 | | | | 1,240 | | | | 1,147,659 | |
| Sr. Unsec’d. Notes | | | 3.887(ff) | | | | 01/10/28 | | | | 980 | | | | 955,170 | |
| Sub. Notes | | | 4.400 | | | | 06/10/25 | | | | 405 | | | | 408,100 | |
| Credit Suisse Group AG (Switzerland), | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 3.750 | | | | 03/26/25 | | | | 1,200 | | | | 1,178,518 | |
| Development Bank of the Republic of Belarus JSC (Belarus), | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, 144A(a) | | | 6.750 | | | | 05/02/24 | | | | 1,155 | | | | 23,100 | |
| Goldman Sachs Group, Inc. (The), | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 3.814(ff) | | | | 04/23/29 | | | | 35 | | | | 33,603 | |
| Sr. Unsec’d. Notes | | | 3.850 | | | | 01/26/27 | | | | 3,940 | | | | 3,855,358 | |
| Sr. Unsec’d. Notes | | | 4.223(ff) | | | | 05/01/29 | | | | 135 | | | | 132,063 | |
| Grupo Aval Ltd. (Colombia), | | | | | | | | | | | | | | | | |
| Gtd. Notes, 144A | | | 4.375 | | | | 02/04/30 | | | | 2,170 | | | | 1,838,992 | |
| JPMorgan Chase & Co., | | | | | | | | | | | | | | | | |
| Jr. Sub. Notes, Series FF | | | 5.000(ff) | | | | 08/01/24(oo) | | | | 1,500 | | | | 1,419,459 | |
| Jr. Sub. Notes, Series HH | | | 4.600(ff) | | | | 02/01/25(oo) | | | | 15,325 | | | | 14,215,730 | |
| Jr. Sub. Notes, Series I, 3 Month LIBOR + 3.470% | | | 4.709(c) | | | | 07/30/22(oo) | | | | 64 | | | | 63,220 | |
| Mizrahi Tefahot Bank Ltd. (Israel), | | | | | | | | | | | | | | | | |
| Sub. Notes, 144A | | | 3.077(ff) | | | | 04/07/31 | | | | 1,555 | | | | 1,411,939 | |
| Morgan Stanley, | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 3.217(ff) | | | | 04/22/42 | | | | 1,690 | | | | 1,385,642 | |
| Sr. Unsec’d. Notes, GMTN | | | 3.772(ff) | | | | 01/24/29 | | | | 1,750 | | | | 1,688,823 | |
| Sr. Unsec’d. Notes, GMTN | | | 3.875 | | | | 01/27/26 | | | | 605 | | | | 600,679 | |
| People’s United Bank NA, | | | | | | | | | | | | | | | | |
| Sub. Notes | | | 4.000 | | | | 07/15/24 | | | | 325 | | | | 326,556 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 48,531,727 | |
See Notes to Financial Statements.
18
| | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | Maturity
Date | | Principal
Amount (000)# | | | Value | |
| | | | |
| CORPORATE BONDS (Continued) | | | | | | | | | | | | |
| | | | |
| Beverages 0.0% | | | | | | | | | | | | |
| Anheuser-Busch InBev Worldwide, Inc. (Belgium), | | | | | | | | | | | | |
| Gtd. Notes | | 8.200% | | 01/15/39 | | | 250 | | | $ | 337,441 | |
| | | | |
| Building Materials 0.1% | | | | | | | | | | | | |
| Cemex SAB de CV (Mexico), | | | | | | | | | | | | |
| Gtd. Notes, 144A | | 5.450 | | 11/19/29 | | | 1,180 | | | | 1,132,951 | |
| Mohawk Industries, Inc., | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | 3.850 | | 02/01/23 | | | 104 | | | | 104,698 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | 1,237,649 | |
| | | | |
| Chemicals 1.2% | | | | | | | | | | | | |
| Ashland LLC, | | | | | | | | | | | | |
| Gtd. Notes | | 6.875 | | 05/15/43 | | | 4,100 | | | | 4,598,035 | |
| Ashland Services BV, | | | | | | | | | | | | |
| Gtd. Notes | | 2.000 | | 01/30/28 | | EUR | 1,200 | | | | 1,146,390 | |
| Braskem Netherlands Finance BV (Brazil), | | | | | | | | | | | | |
| Gtd. Notes, 144A | | 4.500 | | 01/10/28 | | | 1,630 | | | | 1,534,050 | |
| LYB International Finance BV, | | | | | | | | | | | | |
| Gtd. Notes | | 5.250 | | 07/15/43 | | | 175 | | | | 177,467 | |
| Nutrien Ltd. (Canada), | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | 4.900 | | 06/01/43 | | | 1,350 | | | | 1,390,388 | |
| Sasol Financing International Ltd. (South Africa), | | | | | | | | | | | | |
| Gtd. Notes | | 4.500 | | 11/14/22 | | | 2,415 | | | | 2,408,363 | |
| Sasol Financing USA LLC (South Africa), | | | | | | | | | | | | |
| Gtd. Notes | | 4.375 | | 09/18/26 | | | 350 | | | | 326,881 | |
| TPC Group, Inc., | | | | | | | | | | | | |
| Sr. Sec’d. Notes, 144A (original cost $ 1,700,000; purchased 07/19/19)(f) | | 10.500 | | 08/01/24 | | | 1,700 | | | | 569,543 | |
| Sr. Sec’d. Notes, 144A (original cost $ 410,704; purchased 02/01/21)(f) | | 10.875 | | 08/01/24 | | | 419 | | | | 426,261 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | 12,577,378 | |
| | | | |
| Commercial Services 0.7% | | | | | | | | | | | | |
| ERAC USA Finance LLC, | | | | | | | | | | | | |
| Gtd. Notes, 144A | | 6.700 | | 06/01/34 | | | 110 | | | | 130,010 | |
| Gtd. Notes, 144A | | 7.000 | | 10/15/37 | | | 1,725 | | | | 2,103,150 | |
| Nexi SpA (Italy), | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | 2.125 | | 04/30/29 | | EUR | 4,060 | | | | 3,657,197 | |
See Notes to Financial Statements.
PGIM Absolute Return Bond Fund 19
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | Value | |
| | | | |
| CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
| Commercial Services (cont’d.) | | | | | | | | | | | | | | | | |
| United Rentals North America, Inc., | | | | | | | | | | | | | | | | |
| Gtd. Notes | | | 3.750% | | | | 01/15/32 | | | | 325 | | | $ | 283,062 | |
| Gtd. Notes | | | 5.250 | | | | 01/15/30 | | | | 1,200 | | | | 1,177,961 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 7,351,380 | |
| | | | |
| Computers 0.0% | | | | | | | | | | | | | | | | |
| CA Magnum Holdings (India), | | | | | | | | | | | | | | | | |
| Sr. Sec’d. Notes, 144A | | | 5.375 | | | | 10/31/26 | | | | 515 | | | | 493,381 | |
| | | | |
| Diversified Financial Services 0.4% | | | | | | | | | | | | | | | | |
| Blackstone Private Credit Fund, | | | | | | | | | | | | | | | | |
| Sr. Sec’d. Notes | | | 2.500 | | | | 05/03/27 | | | | 950 | | | | 950,000 | |
| Jefferies Finance LLC/JFIN Co-Issuer Corp., | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, 144A(a) | | | 5.000 | | | | 08/15/28 | | | | 1,025 | | | | 934,014 | |
| Jefferies Group LLC, | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 6.500 | | | | 01/20/43 | | | | 175 | | | | 190,715 | |
| OneMain Finance Corp., | | | | | | | | | | | | | | | | |
| Gtd. Notes(a) | | | 3.875 | | | | 09/15/28 | | | | 1,200 | | | | 1,019,575 | |
| Power Finance Corp. Ltd. (India), | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, EMTN | | | 5.250 | | | | 08/10/28 | | | | 1,100 | | | | 1,110,433 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 4,204,737 | |
| | | | |
| Electric 1.3% | | | | | | | | | | | | | | | | |
| AES Panama Generation Holdings SRL (Panama), | | | | | | | | | | | | | | | | |
| Sr. Sec’d. Notes, 144A | | | 4.375 | | | | 05/31/30 | | | | 1,065 | | | | 947,675 | |
| Calpine Corp., | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, 144A(a) | | | 4.625 | | | | 02/01/29 | | | | 1,500 | | | | 1,311,125 | |
| Sr. Unsec’d. Notes, 144A(a) | | | 5.000 | | | | 02/01/31 | | | | 2,275 | | | | 1,940,815 | |
| Clean Renewable Power Mauritius Pte Ltd. (India), | | | | | | | | | | | | | | | | |
| Sr. Sec’d. Notes, 144A(a) | | | 4.250 | | | | 03/25/27 | | | | 466 | | | | 427,482 | |
| Duke Energy Carolinas LLC, | | | | | | | | | | | | | | | | |
| First Ref. Mortgage | | | 4.000 | | | | 09/30/42 | | | | 50 | | | | 45,661 | |
| Eskom Holdings SOC Ltd. (South Africa), | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, 144A | | | 7.125 | | | | 02/11/25 | | | | 2,145 | | | | 2,047,668 | |
| Sr. Unsec’d. Notes, 144A, MTN | | | 6.750 | | | | 08/06/23 | | | | 200 | | | | 195,311 | |
| Evergy Kansas Central, Inc., | | | | | | | | | | | | | | | | |
| First Mortgage | | | 4.100 | | | | 04/01/43 | | | | 325 | | | | 299,206 | |
| FEL Energy VI Sarl (Mexico), | | | | | | | | | | | | | | | | |
| Sr. Sec’d. Notes, 144A | | | 5.750 | | | | 12/01/40 | | | | 1,809 | | | | 1,549,931 | |
See Notes to Financial Statements.
20
| | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | Maturity
Date | | Principal
Amount (000)# | | | Value | |
| | | | |
| CORPORATE BONDS (Continued) | | | | | | | | | | | | |
| | | | |
| Electric (cont’d.) | | | | | | | | | | | | |
| Mong Duong Finance Holdings BV (Vietnam), | | | | | | | | | | | | |
| Sr. Sec’d. Notes | | 5.125% | | 05/07/29 | | | 1,295 | | | $ | 1,155,936 | |
| NRG Energy, Inc., | | | | | | | | | | | | |
| Gtd. Notes, 144A | | 3.625 | | 02/15/31 | | | 1,000 | | | | 834,720 | |
| Gtd. Notes, 144A(a) | | 3.875 | | 02/15/32 | | | 1,525 | | | | 1,273,711 | |
| Vistra Corp., | | | | | | | | | | | | |
| Jr. Sub. Notes, 144A | | 7.000(ff) | | 12/15/26(oo) | | | 450 | | | | 437,997 | |
| Jr. Sub. Notes, 144A | | 8.000(ff) | | 10/15/26(oo) | | | 1,575 | | | | 1,584,720 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | 14,051,958 | |
| | | | |
| Electronics 0.0% | | | | | | | | | | | | |
| Jabil, Inc., | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | 4.700 | | 09/15/22 | | | 80 | | | | 80,595 | |
| | | | |
| Energy-Alternate Sources 0.1% | | | | | | | | | | | | |
| Aydem Yenilenebilir Enerji A/S (Turkey), | | | | | | | | | | | | |
| Sr. Sec’d. Notes, 144A | | 7.750 | | 02/02/27 | | | 830 | | | | 684,486 | |
| | | | |
| Engineering & Construction 0.4% | | | | | | | | | | | | |
| Cellnex Finance Co. SA (Spain), | | | | | | | | | | | | |
| Gtd. Notes, EMTN | | 2.000 | | 02/15/33 | | EUR | 1,100 | | | | 911,410 | |
| Cellnex Telecom SA (Spain), | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, EMTN | | 1.750 | | 10/23/30 | | EUR | 700 | | | | 606,585 | |
| IHS Holding Ltd. (Nigeria), | | | | | | | | | | | | |
| Gtd. Notes, 144A | | 6.250 | | 11/29/28 | | | 850 | | | | 801,627 | |
| Mexico City Airport Trust (Mexico), | | | | | | | | | | | | |
| Sr. Sec’d. Notes, 144A | | 3.875 | | 04/30/28 | | | 2,000 | | | | 1,861,212 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | 4,180,834 | |
| | | | |
| Entertainment 0.4% | | | | | | | | | | | | |
| AMC Entertainment Holdings, Inc., | | | | | | | | | | | | |
| Sec’d. Notes, 144A, Cash coupon 10.000% or PIK 12.000% or Cash coupon 5.000% and PIK 6.000% | | 10.000 | | 06/15/26 | | | 480 | | | | 401,400 | |
| Codere Finance 2 Luxembourg SA (Spain), | | | | | | | | | | | | |
| Sr. Sec’d. Notes, Cash coupon 2.000% and PIK 10.750% | | 12.750 | | 11/30/27(d) | | EUR | 624 | | | | 642,001 | |
| Sr. Sec’d. Notes, 144A, Cash coupon 8.000% and PIK 3.000% | | 11.000 | | 09/30/26(d) | | EUR | 1,978 | | | | 2,212,344 | |
See Notes to Financial Statements.
PGIM Absolute Return Bond Fund 21
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | Value | |
| | | | |
| CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
| Entertainment (cont’d.) | | | | | | | | | | | | | | | | |
| Premier Entertainment Sub LLC/Premier Entertainment Finance Corp., | | | | | | | | | | | | | | | | |
| Gtd. Notes, 144A | | | 5.625% | | | | 09/01/29 | | | | 525 | | | $ | 419,026 | |
| Gtd. Notes, 144A | | | 5.875 | | | | 09/01/31 | | | | 700 | | | | 543,174 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 4,217,945 | |
| | | | |
| Foods 1.1% | | | | | | | | | | | | | | | | |
| Bellis Finco PLC (United Kingdom), | | | | | | | | | | | | | | | | |
| Gtd. Notes(a) | | | 4.000 | | | | 02/16/27 | | | GBP | 2,700 | | | | 2,828,608 | |
| Kraft Heinz Foods Co., | | | | | | | | | | | | | | | | |
| Gtd. Notes | | | 4.625 | | | | 10/01/39 | | | | 440 | | | | 406,692 | |
| Gtd. Notes | | | 4.875 | | | | 10/01/49 | | | | 2,980 | | | | 2,772,886 | |
| Lamb Weston Holdings, Inc., | | | | | | | | | | | | | | | | |
| Gtd. Notes, 144A | | | 4.125 | | | | 01/31/30 | | | | 350 | | | | 312,174 | |
| Gtd. Notes, 144A | | | 4.375 | | | | 01/31/32 | | | | 350 | | | | 314,232 | |
| Market Bidco Finco PLC (United Kingdom), | | | | | | | | | | | | | | | | |
| Sr. Sec’d. Notes, 144A | | | 5.500 | | | | 11/04/27 | | | GBP | 4,400 | | | | 4,924,174 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 11,558,766 | |
| | | | |
| Forest Products & Paper 0.1% | | | | | | | | | | | | | | | | |
| Georgia-Pacific LLC, | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 7.375 | | | | 12/01/25 | | | | 400 | | | | 444,793 | |
| Suzano Austria GmbH (Brazil), | | | | | | | | | | | | | | | | |
| Gtd. Notes | | | 6.000 | | | | 01/15/29 | | | | 1,000 | | | | 1,011,609 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 1,456,402 | |
| | | | |
| Gas 0.6% | | | | | | | | | | | | | | | | |
| AmeriGas Partners LP/AmeriGas Finance Corp., | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 5.500 | | | | 05/20/25 | | | | 2,900 | | | | 2,854,859 | |
| CenterPoint Energy Resources Corp., | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 5.850 | | | | 01/15/41 | | | | 700 | | | | 779,038 | |
| ENN Clean Energy International Investment Ltd. (China), | | | | | | | | | | | | | | | | |
| Gtd. Notes, 144A | | | 3.375 | | | | 05/12/26 | | | | 1,350 | | | | 1,241,154 | |
| Southern Co. Gas Capital Corp., | | | | | | | | | | | | | | | | |
| Gtd. Notes | | | 4.400 | | | | 06/01/43 | | | | 1,375 | | | | 1,245,114 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 6,120,165 | |
See Notes to Financial Statements.
22
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | Value | |
| | | | |
| CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
| Healthcare-Products 0.3% | | | | | | | | | | | | | | | | |
| Medtronic Global Holdings SCA, | | | | | | | | | | | | | | | | |
| Gtd. Notes | | | 1.625% | | | | 03/07/31 | | | EUR | 160 | | | $ | 162,328 | |
| Gtd. Notes | | | 2.250 | | | | 03/07/39 | | | EUR | 705 | | | | 685,879 | |
| Mozart Debt Merger Sub, Inc., | | | | | | | | | | | | | | | | |
| Sr. Sec’d. Notes, 144A | | | 3.875 | | | | 04/01/29 | | | | 250 | | | | 218,576 | |
| Sr. Unsec’d. Notes, 144A | | | 5.250 | | | | 10/01/29 | | | | 150 | | | | 130,484 | |
| Thermo Fisher Scientific, Inc., | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, EMTN | | | 1.500 | | | | 10/01/39 | | | EUR | 1,250 | | | | 1,054,192 | |
| Sr. Unsec’d. Notes, EMTN | | | 1.875 | | | | 10/01/49 | | | EUR | 825 | | | | 676,494 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 2,927,953 | |
| | | | |
| Healthcare-Services 0.3% | | | | | | | | | | | | | | | | |
| Aetna, Inc., | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 2.750 | | | | 11/15/22 | | | | 450 | | | | 450,669 | |
| Sr. Unsec’d. Notes | | | 4.500 | | | | 05/15/42 | | | | 530 | | | | 499,646 | |
| Anthem, Inc., | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 4.101 | | | | 03/01/28 | | | | 700 | | | | 699,343 | |
| Sr. Unsec’d. Notes | | | 4.650 | | | | 01/15/43 | | | | 120 | | | | 117,588 | |
| Sr. Unsec’d. Notes | | | 5.100 | | | | 01/15/44 | | | | 515 | | | | 535,942 | |
| Memorial Sloan-Kettering Cancer Center, | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 4.125 | | | | 07/01/52 | | | | 75 | | | | 73,388 | |
| Tenet Healthcare Corp., | | | | | | | | | | | | | | | | |
| Sec’d. Notes, 144A | | | 6.250 | | | | 02/01/27 | | | | 25 | | | | 24,818 | |
| Sr. Unsec’d. Notes | | | 6.875 | | | | 11/15/31 | | | | 1,300 | | | | 1,346,922 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 3,748,316 | |
| | | | |
| Home Builders 0.6% | | | | | | | | | | | | | | | | |
| Beazer Homes USA, Inc., | | | | | | | | | | | | | | | | |
| Gtd. Notes | | | 7.250 | | | | 10/15/29 | | | | 3,625 | | | | 3,455,570 | |
| Taylor Morrison Communities, Inc., | | | | | | | | | | | | | | | | |
| Gtd. Notes, 144A | | | 5.875 | | | | 06/15/27 | | | | 2,560 | | | | 2,541,606 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 5,997,176 | |
| | | | |
| Housewares 0.0% | | | | | | | | | | | | | | | | |
| SWF Escrow Issuer Corp., | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, 144A | | | 6.500 | | | | 10/01/29 | | | | 325 | | | | 251,540 | |
| | | | |
| Insurance 0.9% | | | | | | | | | | | | | | | | |
| Hartford Financial Services Group, Inc. (The), | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 5.950 | | | | 10/15/36 | | | | 215 | | | | 242,469 | |
See Notes to Financial Statements.
PGIM Absolute Return Bond Fund 23
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | Value | |
| | | | |
| CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
| Insurance (cont’d.) | | | | | | | | | | | | | | | | |
| Hartford Financial Services Group, Inc. (The), (cont’d.) | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 6.100% | | | | 10/01/41 | | | | 280 | | | $ | 321,076 | |
| Liberty Mutual Group, Inc., | | | | | | | | | | | | | | | | |
| Gtd. Notes, 144A | | | 4.250 | | | | 06/15/23 | | | | 436 | | | | 439,435 | |
| Gtd. Notes, 144A | | | 4.569 | | | | 02/01/29 | | | | 1,614 | | | | 1,641,309 | |
| Lincoln National Corp., | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 7.000 | | | | 06/15/40 | | | | 695 | | | | 858,396 | |
| Markel Corp., | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 5.000 | | | | 03/30/43 | | | | 3,125 | | | | 3,111,295 | |
| Principal Financial Group, Inc., | | | | | | | | | | | | | | | | |
| Gtd. Notes | | | 4.350 | | | | 05/15/43 | | | | 975 | | | | 919,320 | |
| Teachers Insurance & Annuity Association of America, | | | | | | | | | | | | | | | | |
| Sub. Notes, 144A | | | 4.900 | | | | 09/15/44 | | | | 1,950 | | | | 1,992,938 | |
| Sub. Notes, 144A | | | 6.850 | | | | 12/16/39 | | | | 54 | | | | 66,523 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 9,592,761 | |
| | | | |
| Internet 0.1% | | | | | | | | | | | | | | | | |
| Prosus NV (China), | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, 144A | | | 4.193 | | | | 01/19/32 | | | | 1,250 | | | | 1,057,221 | |
| | | | |
| Investment Companies 0.1% | | | | | | | | | | | | | | | | |
| Codere New Holdco SA (Luxembourg), | | | | | | | | | | | | | | | | |
| Sr. Sec’d. Notes, 144A, Cash coupon N/A or PIK 7.500%^ | | | 7.500 | | | | 11/30/27(d) | | | EUR | 784 | | | | 711,013 | |
| | | | |
| Lodging 0.3% | | | | | | | | | | | | | | | | |
| Gohl Capital Ltd. (Malaysia), | | | | | | | | | | | | | | | | |
| Gtd. Notes | | | 4.250 | | | | 01/24/27 | | | | 1,510 | | | | 1,398,295 | |
| Marriott International, Inc., | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 3.250 | | | | 09/15/22 | | | | 75 | | | | 75,144 | |
| MGM China Holdings Ltd. (Macau), | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, 144A | | | 4.750 | | | | 02/01/27 | | | | 700 | | | | 588,678 | |
| Sands China Ltd. (Macau), | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 5.125 | | | | 08/08/25 | | | | 1,000 | | | | 968,480 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 3,030,597 | |
| | | | |
| Media 0.9% | | | | | | | | | | | | | | | | |
| CCO Holdings LLC/CCO Holdings Capital Corp., | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, 144A(a) | | | 4.750 | | | | 03/01/30 | | | | 1,300 | | | | 1,160,613 | |
See Notes to Financial Statements.
24
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | Value | |
| | | | |
| CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
| Media (cont’d.) | | | | | | | | | | | | | | | | |
| Charter Communications Operating LLC/Charter Communications Operating Capital, | | | | | | | | | | | | | | | | |
| Sr. Sec’d. Notes | | | 6.384 | % | | | 10/23/35 | | | | 2,640 | | | $ | 2,764,212 | |
| Sr. Sec’d. Notes | | | 6.484 | | | | 10/23/45 | | | | 585 | | | | 591,164 | |
| CSC Holdings LLC, | | | | | | | | | | | | | | | | |
| Gtd. Notes, 144A(a) | | | 5.500 | | | | 04/15/27 | | | | 1,500 | | | | 1,449,021 | |
| Diamond Sports Group LLC/Diamond Sports Finance Co., | | | | | | | | | | | | | | | | |
| Gtd. Notes, 144A | | | 6.625 | | | | 08/15/27 | | | | 2,785 | | | | 582,775 | |
| DISH DBS Corp., | | | | | | | | | | | | | | | | |
| Gtd. Notes | | | 5.875 | | | | 07/15/22 | | | | 1,000 | | | | 1,002,866 | |
| Virgin Media Secured Finance PLC (United Kingdom), | | | | | | | | | | | | | | | | |
| Sr. Sec’d. Notes | | | 4.125 | | | | 08/15/30 | | | GBP | 700 | | | | 766,006 | |
| Sr. Sec’d. Notes | | | 4.250 | | | | 01/15/30 | | | GBP | 600 | | | | 655,966 | |
| Ziggo BV (Netherlands), | | | | | | | | | | | | | | | | |
| Sr. Sec’d. Notes | | | 2.875 | | | | 01/15/30 | | | EUR | 1,270 | | | | 1,150,743 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 10,123,366 | |
| | | | |
| Mining 0.4% | | | | | | | | | | | | | | | | |
| AngloGold Ashanti Holdings PLC (South Africa), | | | | | | | | | | | | | | | | |
| Gtd. Notes | | | 3.375 | | | | 11/01/28 | | | | 730 | | | | 653,418 | |
| Freeport Indonesia PT (Indonesia), | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, 144A, MTN | | | 5.315 | | | | 04/14/32 | | | | 600 | | | | 577,441 | |
| Indonesia Asahan Aluminium Persero PT (Indonesia), | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 6.530 | | | | 11/15/28 | | | | 1,650 | | | | 1,796,170 | |
| Vedanta Resources Finance II PLC (India), | | | | | | | | | | | | | | | | |
| Gtd. Notes | | | 13.875 | | | | 01/21/24 | | | | 1,425 | | | | 1,488,265 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 4,515,294 | |
| | | | |
| Oil & Gas 1.5% | | | | | | | | | | | | | | | | |
| Ascent Resources Utica Holdings LLC/ARU Finance Corp., | | | | | | | | | | | | | | | | |
| Gtd. Notes, 144A | | | 7.000 | | | | 11/01/26 | | | | 1,225 | | | | 1,234,037 | |
| Gtd. Notes, 144A | | | 9.000 | | | | 11/01/27 | | | | 974 | | | | 1,355,268 | |
| Cenovus Energy, Inc. (Canada), | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes(a) | | | 5.400 | | | | 06/15/47 | | | | 1,835 | | | | 1,861,949 | |
| Citgo Holding, Inc., | | | | | | | | | | | | | | | | |
| Sr. Sec’d. Notes, 144A(a) | | | 9.250 | | | | 08/01/24 | | | | 75 | | | | 74,521 | |
See Notes to Financial Statements.
PGIM Absolute Return Bond Fund 25
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | Value | |
| | | | |
| CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
| Oil & Gas (cont’d.) | | | | | | | | | | | | | | | | |
| Energean Israel Finance Ltd. (Israel), | | | | | | | | | | | | | | | | |
| Sr. Sec’d. Notes, 144A | | | 4.875% | | | | 03/30/26 | | | | 450 | | | $ | 417,778 | |
| Sr. Sec’d. Notes, 144A | | | 5.375 | | | | 03/30/28 | | | | 720 | | | | 661,739 | |
| Gazprom PJSC Via Gaz Capital SA (Russia), | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 1.450 | | | | 03/06/23 | | | CHF | 1,500 | | | | 462,606 | |
| Hilcorp Energy I LP/Hilcorp Finance Co., | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, 144A | | | 6.250 | | | | 11/01/28 | | | | 700 | | | | 697,627 | |
| Leviathan Bond Ltd. (Israel), | | | | | | | | | | | | | | | | |
| Sr. Sec’d. Notes, 144A | | | 6.750 | | | | 06/30/30 | | | | 2,020 | | | | 1,982,507 | |
| Petrobras Global Finance BV (Brazil), | | | | | | | | | | | | | | | | |
| Gtd. Notes | | | 5.375 | | | | 10/01/29 | | | GBP | 800 | | | | 963,720 | |
| Petroleos Mexicanos (Mexico), | | | | | | | | | | | | | | | | |
| Gtd. Notes | | | 4.750 | | | | 02/26/29 | | | EUR | 795 | | | | 741,044 | |
| Gtd. Notes | | | 6.350 | | | | 02/12/48 | | | | 1,238 | | | | 866,920 | |
| Gtd. Notes | | | 6.500 | | | | 03/13/27 | | | | 260 | | | | 249,124 | |
| Gtd. Notes | | | 6.840 | | | | 01/23/30 | | | | 405 | | | | 370,710 | |
| Gtd. Notes, EMTN | | | 4.875 | | | | 02/21/28 | | | EUR | 250 | | | | 240,735 | |
| Qatar Energy (Qatar), | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, 144A | | | 3.125 | | | | 07/12/41 | | | | 425 | | | | 355,408 | |
| Transocean, Inc., | | | | | | | | | | | | | | | | |
| Gtd. Notes, 144A | | | 7.250 | | | | 11/01/25 | | | | 3,025 | | | | 2,510,586 | |
| Tullow Oil PLC (Ghana), | | | | | | | | | | | | | | | | |
| Sr. Sec’d. Notes, 144A | | | 10.250 | | | | 05/15/26 | | | | 1,605 | | | | 1,583,729 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 16,630,008 | |
| | | | |
| Oil & Gas Services 0.0% | | | | | | | | | | | | | | | | |
| Cameron International Corp.,
Gtd. Notes | | | 5.950 | | | | 06/01/41 | | | | 100 | | | | 106,105 | |
| | | | |
| Packaging & Containers 0.3% | | | | | | | | | | | | | | | | |
| ARD Finance SA (Luxembourg), | | | | | | | | | | | | | | | | |
| Sr. Sec’d. Notes, 144A, Cash coupon 5.000% or PIK 5.750% | | | 5.000 | | | | 06/30/27 | | | EUR | 2,203 | | | | 1,922,371 | |
| Verallia SA (France), | | | | | | | | | | | | | | | | |
| Gtd. Notes | | | 1.625 | | | | 05/14/28 | | | EUR | 1,900 | | | | 1,805,625 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 3,727,996 | |
| | | | |
| Pharmaceuticals 1.3% | | | | | | | | | | | | | | | | |
| AbbVie, Inc., | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 4.050 | | | | 11/21/39 | | | | 905 | | | | 830,529 | |
See Notes to Financial Statements.
26
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | Value | |
| | | | |
| CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
| Pharmaceuticals (cont’d.) | | | | | | | | | | | | | | | | |
| AbbVie, Inc., (cont’d.) | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes(h) | | | 4.550% | | | | 03/15/35 | | | | 4,155 | | | $ | 4,131,342 | |
| Bausch Health Cos., Inc., | | | | | | | | | | | | | | | | |
| Gtd. Notes, 144A | | | 5.000 | | | | 01/30/28 | | | | 400 | | | | 295,544 | |
| Gtd. Notes, 144A | | | 6.250 | | | | 02/15/29 | | | | 1,200 | | | | 874,769 | |
| Bristol-Myers Squibb Co., | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 4.125 | | | | 06/15/39 | | | | 615 | | | | 598,672 | |
| Cigna Corp., | | | | | | | | | | | | | | | | |
| Gtd. Notes(h) | | | 4.375 | | | | 10/15/28 | | | | 3,990 | | | | 4,009,635 | |
| CVS Health Corp., | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 5.125 | | | | 07/20/45 | | | | 1,315 | | | | 1,319,988 | |
| Sr. Unsec’d. Notes | | | 5.300 | | | | 12/05/43 | | | | 485 | | | | 503,257 | |
| Utah Acquisition Sub, Inc., | | | | | | | | | | | | | | | | |
| Gtd. Notes | | | 5.250 | | | | 06/15/46 | | | | 520 | | | | 461,763 | |
| Viatris, Inc., | | | | | | | | | | | | | | | | |
| Gtd. Notes | | | 4.000 | | | | 06/22/50 | | | | 2,190 | | | | 1,617,911 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 14,643,410 | |
| | | | |
| Pipelines 1.3% | | | | | | | | | | | | | | | | |
| AI Candelaria Spain SA (Colombia), | | | | | | | | | | | | | | | | |
| Sr. Sec’d. Notes, 144A (original cost $920,000; purchased 05/10/21)(f) | | | 5.750 | | | | 06/15/33 | | | | 920 | | | | 771,458 | |
| Antero Midstream Partners LP/Antero Midstream Finance Corp., | | | | | | | | | | | | | | | | |
| Gtd. Notes, 144A | | | 7.875 | | | | 05/15/26 | | | | 900 | | | | 941,153 | |
| Eastern Gas Transmission & Storage, Inc., | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, 144A | | | 4.600 | | | | 12/15/44 | | | | 125 | | | | 116,864 | |
| Energy Transfer LP, | | | | | | | | | | | | | | | | |
| Jr. Sub. Notes, Series G | | | 7.125(ff) | | | | 05/15/30(oo) | | | | 3,360 | | | | 3,171,967 | |
| Sr. Unsec’d. Notes | | | 5.150 | | | | 03/15/45 | | | | 55 | | | | 49,698 | |
| Sr. Unsec’d. Notes | | | 5.300 | | | | 04/15/47 | | | | 125 | | | | 113,049 | |
| Sr. Unsec’d. Notes | | | 5.400 | | | | 10/01/47 | | | | 60 | | | | 55,161 | |
| Sr. Unsec’d. Notes | | | 6.250 | | | | 04/15/49 | | | | 75 | | | | 76,157 | |
| Enterprise Products Operating LLC, | | | | | | | | | | | | | | | | |
| Gtd. Notes | | | 4.900 | | | | 05/15/46 | | | | 1,025 | | | | 986,870 | |
| Gtd. Notes | | | 4.950 | | | | 10/15/54 | | | | 800 | | | | 772,015 | |
| Magellan Midstream Partners LP, | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 4.200 | | | | 12/01/42 | | | | 125 | | | | 105,458 | |
| Sr. Unsec’d. Notes | | | 5.150 | | | | 10/15/43 | | | | 1,350 | | | | 1,318,046 | |
| MPLX LP, | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 5.200 | | | | 03/01/47 | | | | 145 | | | | 136,737 | |
See Notes to Financial Statements.
PGIM Absolute Return Bond Fund 27
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | Value | |
| | | | |
| CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
| Pipelines (cont’d.) | | | | | | | | | | | | | | | | |
| NGPL PipeCo LLC, | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, 144A | | | 4.875% | | | | 08/15/27 | | | | 500 | | | $ | 506,321 | |
| ONEOK, Inc., | | | | | | | | | | | | | | | | |
| Gtd. Notes | | | 4.950 | | | | 07/13/47 | | | | 1,060 | | | | 965,155 | |
| Rockies Express Pipeline LLC, | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, 144A | | | 3.600 | | | | 05/15/25 | | | | 775 | | | | 735,776 | |
| Sr. Unsec’d. Notes, 144A | | | 6.875 | | | | 04/15/40 | | | | 1,850 | | | | 1,764,828 | |
| Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp., | | | | | | | | | | | | | | | | |
| Gtd. Notes, 144A | | | 5.500 | | | | 01/15/28 | | | | 1,000 | | | | 933,478 | |
| Gtd. Notes, 144A | | | 7.500 | | | | 10/01/25 | | | | 125 | | | | 127,477 | |
| Venture Global Calcasieu Pass LLC, | | | | | | | | | | | | | | | | |
| Sr. Sec’d. Notes, 144A | | | 3.875 | | | | 08/15/29 | | | | 75 | | | | 68,484 | |
| Sr. Sec’d. Notes, 144A | | | 4.125 | | | | 08/15/31 | | | | 75 | | | | 68,418 | |
| Western Midstream Operating LP, | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 5.300 | | | | 03/01/48 | | | | 910 | | | | 790,404 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 14,574,974 | |
| | | | |
| Real Estate 0.4% | | | | | | | | | | | | | | | | |
| Arabian Centres Sukuk Ltd. (Saudi Arabia), | | | | | | | | | | | | | | | | |
| Gtd. Notes, 144A | | | 5.375 | | | | 11/26/24 | | | | 995 | | | | 969,343 | |
| Greystar Real Estate Partners LLC, | | | | | | | | | | | | | | | | |
| Sr. Sec’d. Notes, 144A | | | 5.750 | | | | 12/01/25 | | | | 3,575 | | | | 3,595,093 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 4,564,436 | |
| | | | |
| Real Estate Investment Trusts (REITs) 0.1% | | | | | | | | | | | | | | | | |
| Diversified Healthcare Trust, | | | | | | | | | | | | | | | | |
| Gtd. Notes | | | 4.375 | | | | 03/01/31 | | | | 1,000 | | | | 778,054 | |
| | | | |
| Retail 0.8% | | | | | | | | | | | | | | | | |
| Brinker International, Inc., | | | | | | | | | | | | | | | | |
| Gtd. Notes, 144A | | | 5.000 | | | | 10/01/24 | | | | 1,000 | | | | 999,497 | |
| eG Global Finance PLC (United Kingdom), | | | | | | | | | | | | | | | | |
| Sr. Sec’d. Notes | | | 6.250 | | | | 10/30/25 | | | EUR | 250 | | | | 257,830 | |
| Sr. Sec’d. Notes, 144A | | | 4.375 | | | | 02/07/25 | | | EUR | 4,700 | | | | 4,755,663 | |
| Falabella SA (Chile), | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, 144A | | | 3.375 | | | | 01/15/32 | | | | 1,200 | | | | 1,057,991 | |
See Notes to Financial Statements.
28
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | Value | |
| | | | |
| CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
| Retail (cont’d.) | | | | | | | | | | | | | | | | |
| JSM Global Sarl (Brazil), | | | | | | | | | | | | | | | | |
| Gtd. Notes, 144A | | | 4.750% | | | | 10/20/30 | | | | 1,800 | | | $ | 1,520,286 | |
| Macy’s Retail Holdings LLC, | | | | | | | | | | | | | | | | |
| Gtd. Notes | | | 4.300 | | | | 02/15/43 | | | | 705 | | | | 485,360 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 9,076,627 | |
| | | | |
| Savings & Loans 0.0% | | | | | | | | | | | | | | | | |
| People’s United Financial, Inc., | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 3.650 | | | | 12/06/22 | | | | 325 | | | | 326,180 | |
| | | | |
| Telecommunications 1.7% | | | | | | | | | | | | | | | | |
| AT&T, Inc., | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes(a) | | | 2.550 | | | | 12/01/33 | | | | 1,542 | | | | 1,277,625 | |
| Sr. Unsec’d. Notes | | | 3.500 | | | | 09/15/53 | | | | 929 | | | | 728,399 | |
| Sr. Unsec’d. Notes | | | 3.650 | | | | 09/15/59 | | | | 318 | | | | 244,596 | |
| CT Trust (Guatemala), | | | | | | | | | | | | | | | | |
| Sr. Sec’d. Notes, 144A | | | 5.125 | | | | 02/03/32 | | | | 760 | | | | 704,324 | |
| Digicel Group Holdings Ltd. (Jamaica), | | | | | | | | | | | | | | | | |
| Sr. Sec’d. Notes, Cash coupon 8.000% and PIK 2.000% | | | 10.000 | | | | 04/01/24 | | | | 817 | | | | 816,680 | |
| Sr. Unsec’d. Notes, 144A, Cash coupon 5.000% and PIK 3.000% | | | 8.000 | | | | 04/01/25 | | | | 255 | | | | 213,272 | |
| Digicel International Finance Ltd./Digicel International Holdings Ltd. (Jamaica), | | | | | | | | | | | | | | | | |
| Gtd. Notes, 144A | | | 8.000 | | | | 12/31/26 | | | | 454 | | | | 406,596 | |
| Gtd. Notes, 144A, Cash coupon 6.000% and PIK 7.000% | | | 13.000 | | | | 12/31/25 | | | | 646 | | | | 633,884 | |
| Sr. Sec’d. Notes, 144A(a) | | | 8.750 | | | | 05/25/24 | | | | 1,138 | | | | 1,121,238 | |
| Digicel Ltd. (Jamaica), | | | | | | | | | | | | | | | | |
| Gtd. Notes, 144A | | | 6.750 | | | | 03/01/23 | | | | 2,050 | | | | 1,837,738 | |
| Intelsat Jackson Holdings SA (Luxembourg), | | | | | | | | | | | | | | | | |
| Gtd. Notes^ | | | 5.500 | | | | 08/01/23(d) | | | | 2,000 | | | | 2 | |
| Gtd. Notes, 144A^ | | | 8.500 | | | | 10/15/24(d) | | | | 50 | | | | — | |
| Gtd. Notes, 144A^ | | | 9.750 | | | | 07/15/25(d) | | | | 50 | | | | — | |
| Sr. Sec’d. Notes, 144A | | | 6.500 | | | | 03/15/30 | | | | 1,400 | | | | 1,319,202 | |
| Kaixo Bondco Telecom SA (Spain), | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, 144A | | | 5.125 | | | | 09/30/29 | | | EUR | 2,600 | | | | 2,423,119 | |
| Level 3 Financing, Inc., | | | | | | | | | | | | | | | | |
| Sr. Sec’d. Notes, 144A | | | 3.400 | | | | 03/01/27 | | | | 465 | | | | 421,114 | |
| Lumen Technologies, Inc., | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, Series P | | | 7.600 | | | | 09/15/39 | | | | 825 | | | | 721,010 | |
See Notes to Financial Statements.
PGIM Absolute Return Bond Fund 29
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | Value | |
| | | | |
| CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
| Telecommunications (cont’d.) | | | | | | | | | | | | | | | | |
| Millicom International Cellular SA (Colombia), | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, 144A | | | 4.500 | % | | | 04/27/31 | | | | 515 | | | $ | 446,331 | |
| Sprint Corp., | | | | | | | | | | | | | | | | |
| Gtd. Notes | | | 7.125 | | | | 06/15/24 | | | | 2,000 | | | | 2,103,976 | |
| Gtd. Notes(a) | | | 7.625 | | | | 02/15/25 | | | | 1,150 | | | | 1,224,502 | |
| Total Play Telecomunicaciones SA de CV (Mexico), | | | | | | | | | | | | | | | | |
| Gtd. Notes, 144A | | | 6.375 | | | | 09/20/28 | | | | 480 | | | | 402,231 | |
| Verizon Communications, Inc., | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 3.400 | | | | 03/22/41 | | | | 1,575 | | | | 1,325,887 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 18,371,726 | |
| | | | |
| Transportation 0.0% | | | | | | | | | | | | | | | | |
| Indian Railway Finance Corp. Ltd. (India), | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, 144A, MTN | | | 3.570 | | | | 01/21/32 | | | | 360 | | | | 315,734 | |
| | | | | | | | | | | | | | | | |
| | |
| TOTAL CORPORATE BONDS
(cost $294,735,047) | | | | | | | | 266,403,703 | |
| | | | | | | | | | | | | | | | |
| | | | |
| MUNICIPAL BONDS 1.9% | | | | | | | | | | | | | | | | |
| | | | |
| California 0.4% | | | | | | | | | | | | | | | | |
| Bay Area Toll Authority, | | | | | | | | | | | | | | | | |
| Revenue Bonds, BABs, Series F2 | | | 6.263 | | | | 04/01/49 | | | | 550 | | | | 717,268 | |
| Los Angeles Department of Water & Power, Water System Revenue, | | | | | | | | | | | | | | | | |
| Taxable, Revenue Bonds, BABs, Series C | | | 6.008 | | | | 07/01/39 | | | | 1,730 | | | | 1,949,818 | |
| University of California, | | | | | | | | | | | | | | | | |
| Taxable, Revenue Bonds, Series AP | | | 3.931 | | | | 05/15/45 | | | | 625 | | | | 595,238 | |
| Taxable, Revenue Bonds, Series J | | | 4.131 | | | | 05/15/45 | | | | 675 | | | | 653,868 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 3,916,192 | |
| | | | |
| Colorado 0.1% | | | | | | | | | | | | | | | | |
| Regional Transportation District Sales Tax Revenue, | | | | | | | | | | | | | | | | |
| Revenue Bonds, BABs, Series B | | | 5.844 | | | | 11/01/50 | | | | 1,190 | | | | 1,461,448 | |
| | | | |
| Illinois 0.1% | | | | | | | | | | | | | | | | |
| State of Illinois, | | | | | | | | | | | | | | | | |
| General Obligation Unlimited, Taxable | | | 5.100 | | | | 06/01/33 | | | | 865 | | | | 884,421 | |
See Notes to Financial Statements.
30
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | Value | |
| | | | |
| MUNICIPAL BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
| New Jersey 0.3% | | | | | | | | | | | | | | | | |
| New Jersey Turnpike Authority, | | | | | | | | | | | | | | | | |
| Taxable, Revenue Bonds, BABs, Series F | | | 7.414% | | | | 01/01/40 | | | | 2,000 | | | $ | 2,718,777 | |
| Rutgers The State University of New Jersey, | | | | | | | | | | | | | | | | |
| Taxable, Revenue Bonds, BABs, Series H | | | 5.665 | | | | 05/01/40 | | | | 200 | | | | 228,209 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 2,946,986 | |
| | | | |
| Ohio 0.0% | | | | | | | | | | | | | | | | |
| Ohio State University (The), | | | | | | | | | | | | | | | | |
| Taxable, Revenue Bonds, Series A | | | 4.800 | | | | 06/01/2111 | | | | 180 | | | | 177,769 | |
| | | | |
| Puerto Rico 1.0% | | | | | | | | | | | | | | | | |
| Commonwealth of Puerto Rico, | | | | | | | | | | | | | | | | |
| Revenue Bonds, Series C | | | 0.000(cc) | | | | 11/01/43 | | | | 9,167 | | | | 4,786,431 | |
| Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, | | | | | | | | | | | | | | | | |
| Revenue Bonds, Restructured, Series A-1 | | | 4.750 | | | | 07/01/53 | | | | 5,846 | | | | 5,918,607 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 10,705,038 | |
| | | | |
| Texas 0.0% | | | | | | | | | | | | | | | | |
| City of San Antonio Electric & Gas Systems Revenue, | | | | | | | | | | | | | | | | |
| Taxable, Revenue Bonds | | | 4.427 | | | | 02/01/42 | | | | 120 | | | | 121,992 | |
| | | | | | | | | | | | | | | | |
| | |
| TOTAL MUNICIPAL BONDS
(cost $20,332,571) | | | | | | | | 20,213,846 | |
| | | | | | | | | | | | | | | | |
| | | | |
| RESIDENTIAL MORTGAGE-BACKED SECURITIES 2.7% | | | | | | | | | | | | | | | | |
| Banc of America Funding Corp., | | | | | | | | | | | | | | | | |
| Series 2015-R03, Class 1A1, 144A, 1 Month LIBOR + 0.190% | | | 0.858(c) | | | | 03/27/36 | | | | 516 | | | | 514,241 | |
| Banc of America Funding Trust, | | | | | | | | | | | | | | | | |
| Series 2014-R05, Class 1A1, 144A, 6 Month LIBOR + 1.500% (Cap 11.000%, Floor 1.500%) | | | 2.890(c) | | | | 09/26/45 | | | | 215 | | | | 215,058 | |
| Bellemeade Re Ltd. (Bermuda), | | | | | | | | | | | | | | | | |
| Series 2018-03A, Class M1B, 144A, 1 Month LIBOR + 1.850% (Cap N/A, Floor 1.850%) | | | 2.518(c) | | | | 10/25/28 | | | | 1,492 | | | | 1,487,849 | |
| Series 2021-01A, Class M1C, 144A, 30 Day Average SOFR + 2.950% (Cap N/A, Floor 2.950%) | | | 3.239(c) | | | | 03/25/31 | | | | 960 | | | | 955,002 | |
| Chase Mortgage Finance Trust, | | | | | | | | | | | | | | | | |
| Series 2007-A01, Class 1A3 | | | 2.354(cc) | | | | 02/25/37 | | | | 46 | | | | 45,911 | |
See Notes to Financial Statements.
PGIM Absolute Return Bond Fund 31
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | Value | |
| | |
| RESIDENTIAL MORTGAGE-BACKED SECURITIES (Continued) | | | | | | | | | |
| Connecticut Avenue Securities Trust, | | | | | | | | | | | | | | | | |
| Series 2020-R01, Class 1M2, 144A, 1 Month LIBOR + 2.050% (Cap N/A, Floor 2.050%) | | | 2.718%(c) | | | | 01/25/40 | | | | 77 | | | $ | 76,809 | |
| Series 2021-R01, Class 1B1, 144A, 30 Day Average SOFR + 3.100% (Cap N/A, Floor 0.000%) | | | 3.389(c) | | | | 10/25/41 | | | | 990 | | | | 927,447 | |
| Series 2022-R01, Class 1B1, 144A, 30 Day Average SOFR + 3.150% (Cap N/A, Floor 0.000%) | | | 3.439(c) | | | | 12/25/41 | | | | 1,718 | | | | 1,597,769 | |
| Series 2022-R02, Class 2B1, 144A, 30 Day Average SOFR + 4.500% (Cap N/A, Floor 0.000%) | | | 4.789(c) | | | | 01/25/42 | | | | 440 | | | | 417,455 | |
| Series 2022-R04, Class 1B1, 144A, 30 Day Average SOFR + 5.250% (Cap N/A, Floor 0.000%) | | | 5.539(c) | | | | 03/25/42 | | | | 290 | | | | 288,366 | |
| Eagle Re Ltd. (Bermuda), | | | | | | | | | | | | | | | | |
| Series 2018-01, Class M1, 144A, 1 Month LIBOR + 1.700% (Cap N/A, Floor 1.700%) | | | 2.368(c) | | | | 11/25/28 | | | | 1,893 | | | | 1,889,078 | |
| Series 2021-02, Class M1C, 144A, 30 Day Average SOFR + 3.450% (Cap N/A, Floor 3.450%) | | | 3.739(c) | | | | 04/25/34 | | | | 910 | | | | 865,737 | |
| FHLMC Structured Agency Credit Risk Debt Notes, | | | | | | | | | | | | | | | | |
| Series 2021-DNA02, Class B1, 144A, 30 Day Average SOFR + 3.400% (Cap N/A, Floor 0.000%) | | | 3.689(c) | | | | 08/25/33 | | | | 3,260 | | | | 3,077,483 | |
| Series 2021-DNA07, Class B1, 144A, 30 Day Average SOFR + 3.650% (Cap N/A, Floor 0.000%) | | | 3.939(c) | | | | 11/25/41 | | | | 695 | | | | 647,965 | |
| FHLMC Structured Agency Credit Risk REMIC Trust, | | | | | | | | | | | | | | | | |
| Series 2021-DNA05, Class B1, 144A, 30 Day Average SOFR + 3.050% (Cap N/A, Floor 0.000%) | | | 3.339(c) | | | | 01/25/34 | | | | 600 | | | | 566,952 | |
| Series 2021-HQA03, Class B1, 144A, 30 Day Average SOFR + 3.350% (Cap N/A, Floor 0.000%) | | | 3.639(c) | | | | 09/25/41 | | | | 570 | | | | 515,364 | |
| Series 2022-DNA03, Class M1B, 144A, 30 Day Average SOFR + 2.900% (Cap N/A, Floor 0.000%) | | | 3.151(c) | | | | 04/25/42 | | | | 1,920 | | | | 1,923,474 | |
| GSMSC Resecuritization Trust, | | | | | | | | | | | | | | | | |
| Series 2015-03R, Class 2A2, 144A, 1 Month LIBOR + 0.140% (Cap N/A, Floor 0.140%) | | | 0.808(c) | | | | 10/26/36 | | | | 1,210 | | | | 1,186,775 | |
| Home Re Ltd. (Bermuda), | | | | | | | | | | | | | | | | |
| Series 2018-01, Class M1, 144A, 1 Month LIBOR + 1.600% (Cap N/A, Floor 0.000%) | | | 2.268(c) | | | | 10/25/28 | | | | 550 | | | | 549,493 | |
See Notes to Financial Statements.
32
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | Value | |
| | |
| RESIDENTIAL MORTGAGE-BACKED SECURITIES (Continued) | | | | | | | | | |
| JPMorgan Mortgage Trust, | | | | | | | | | | | | | | | | |
| Series 2007-A01, Class 4A1 | | | 2.328%(cc) | | | | 07/25/35 | | | | 26 | | | $ | 25,677 | |
| New Residential Mortgage Loan Trust, | | | | | | | | | | | | | | | | |
| Series 2018-04A, Class A1S, 144A, 1 Month LIBOR + 0.750% (Cap N/A, Floor 0.750%) | | | 1.418(c) | | | | 01/25/48 | | | | 1,742 | | | | 1,721,277 | |
| Oaktown Re II Ltd. (Bermuda), | | | | | | | | | | | | | | | | |
| Series 2018-01A, Class M1, 144A, 1 Month LIBOR + 1.550% (Cap N/A, Floor 0.000%) | | | 2.218(c) | | | | 07/25/28 | | | | 310 | | | | 309,416 | |
| Oaktown Re VII Ltd. (Bermuda), | | | | | | | | | | | | | | | | |
| Series 2021-02, Class M1B, 144A, 30 Day Average SOFR + 2.900% (Cap N/A, Floor 2.900%) | | | 3.189(c) | | | | 04/25/34 | | | | 1,000 | | | | 957,616 | |
| PNMAC GMSR Issuer Trust, | | | | | | | | | | | | | | | | |
| Series 2018-GT01, Class A, 144A, 1 Month LIBOR + 2.850% (Cap N/A, Floor 2.850%) | | | 3.518(c) | | | | 02/25/23 | | | | 1,650 | | | | 1,643,504 | |
| Series 2018-GT02, Class A, 144A, 1 Month LIBOR + 2.650% (Cap N/A, Floor 0.000%) | | | 3.318(c) | | | | 08/25/25 | | | | 3,400 | | | | 3,368,371 | |
| Radnor Re Ltd. (Bermuda), | | | | | | | | | | | | | | | | |
| Series 2018-01, Class M1, 144A, 1 Month LIBOR + 1.400% (Cap N/A, Floor 0.000%) | | | 2.068(c) | | | | 03/25/28 | | | | 92 | | | | 92,266 | |
| Series 2018-01, Class M2, 144A, 1 Month LIBOR + 2.700% (Cap N/A, Floor 0.000%) | | | 3.368(c) | | | | 03/25/28 | | | | 1,240 | | | | 1,228,108 | |
| Series 2021-02, Class M1B, 144A, 30 Day Average SOFR + 3.700% (Cap N/A, Floor 3.700%) | | | 3.989(c) | | | | 11/25/31 | | | | 1,000 | | | | 970,582 | |
| Retiro Mortgage Securities DAC (Ireland), | | | | | | | | | | | | | | | | |
| Series 01A, Class A1, 144A, 3 Month EURIBOR + 2.000% (Cap 5.000%, Floor 0.000%) | | | 1.555(c) | | | | 07/30/75 | | | EUR | 1,227 | | | | 1,288,717 | |
| Structured Asset Securities Corp., | | | | | | | | | | | | | | | | |
| Series 2003-37A, Class 3A7 | | | 2.302(cc) | | | | 12/25/33 | | | | 263 | | | | 262,789 | |
| | | | | | | | | | | | | | | | |
| | | | |
| TOTAL RESIDENTIAL MORTGAGE-BACKED SECURITIES
(cost $30,281,486) | | | | | | | | | | | | | | | 29,616,551 | |
| | | | | | | | | | | | | | | | |
| | | | |
| SOVEREIGN BONDS 2.7% | | | | | | | | | | | | | | | | |
| 1MDB Global Investments Ltd. (Malaysia), | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 4.400 | | | | 03/09/23 | | | | 1,000 | | | | 974,511 | |
| Airport Authority (Hong Kong), | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, 144A | | | 3.250 | | | | 01/12/52 | | | | 1,350 | | | | 1,118,271 | |
| Bermuda Government International Bond (Bermuda), | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, 144A | | | 2.375 | | | | 08/20/30 | | | | 685 | | | | 605,320 | |
| Brazil Loan Trust 1 (Brazil), | | | | | | | | | | | | | | | | |
| Gov’t. Gtd. Notes | | | 5.477 | | | | 07/24/23 | | | | 235 | | | | 237,057 | |
See Notes to Financial Statements.
PGIM Absolute Return Bond Fund 33
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | Value | |
| | | | |
| SOVEREIGN BONDS (Continued) | | | | | | | | | | | | | | | | |
| Brazil Minas SPE via State of Minas Gerais (Brazil), | | | | | | | | | | | | | | | | |
| Gov’t. Gtd. Notes | | | 5.333% | | | | 02/15/28 | | | | 1,974 | | | $ | 2,002,336 | |
| Dominican Republic International Bond (Dominican Republic), | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, 144A | | | 5.500 | | | | 02/22/29 | | | | 1,915 | | | | 1,790,678 | |
| Sr. Unsec’d. Notes, 144A | | | 5.950 | | | | 01/25/27 | | | | 1,570 | | | | 1,576,272 | |
| Hellenic Republic Government International Bond (Greece), | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 5.200 | | | | 07/17/34 | | | EUR | 5,485 | | | | 6,503,917 | |
| Sr. Unsec’d. Notes | | | 6.140 | | | | 04/14/28 | | | EUR | 2,000 | | | | 2,477,254 | |
| Indonesia Government International Bond (Indonesia), | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 1.100 | | | | 03/12/33 | | | EUR | 410 | | | | 351,648 | |
| Sr. Unsec’d. Notes | | | 1.450 | | | | 09/18/26 | | | EUR | 805 | | | | 817,286 | |
| Sr. Unsec’d. Notes | | | 3.375 | | | | 07/30/25 | | | EUR | 2,655 | | | | 2,905,647 | |
| Ivory Coast Government International Bond (Ivory Coast), | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 5.125 | | | | 06/15/25 | | | EUR | 500 | | | | 538,132 | |
| Sr. Unsec’d. Notes, 144A | | | 5.125 | | | | 06/15/25 | | | EUR | 1,650 | | | | 1,775,836 | |
| Romanian Government International Bond (Romania), | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, EMTN | | | 4.125 | | | | 03/11/39 | | | EUR | 1,759 | | | | 1,561,893 | |
| Serbia International Bond (Serbia), | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 3.125 | | | | 05/15/27 | | | EUR | 790 | | | | 748,769 | |
| Sr. Unsec’d. Notes, 144A | | | 1.500 | | | | 06/26/29 | | | EUR | 1,660 | | | | 1,343,504 | |
| Ukraine Government International Bond (Ukraine), | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 8.994 | | | | 02/01/24 | | | | 350 | | | | 123,375 | |
| Sr. Unsec’d. Notes, 144A | | | 4.375 | | | | 01/27/30 | | | EUR | 1,265 | | | | 413,699 | |
| Sr. Unsec’d. Notes, 144A | | | 7.750 | | | | 09/01/22 | | | | 1,560 | | | | 826,800 | |
| Sr. Unsec’d. Notes, 144A | | | 8.994 | | | | 02/01/24 | | | | 800 | | | | 282,000 | |
| | | | | | | | | | | | | | | | |
| | | | |
| TOTAL SOVEREIGN BONDS
(cost $33,082,277) | | | | | | | | | | | | | | | 28,974,205 | |
| | | | | | | | | | | | | | | | |
| | | | |
| U.S. TREASURY OBLIGATIONS 17.3% | | | | | | | | | | | | | | | | |
| U.S. Treasury Bonds(h)(k) | | | 1.375 | | | | 11/15/40 | | | | 15,930 | | | | 11,917,631 | |
| U.S. Treasury Bonds | | | 1.875 | | | | 11/15/51 | | | | 4,893 | | | | 3,836,418 | |
| U.S. Treasury Bonds(h)(k) | | | 2.250 | | | | 05/15/41 | | | | 41,925 | | | | 36,310,980 | |
| U.S. Treasury Bonds | | | 2.375 | | | | 02/15/42 | | | | 951 | | | | 840,446 | |
| U.S. Treasury Bonds(h)(k) | | | 2.500 | | | | 02/15/45 | | | | 3,505 | | | | 3,100,830 | |
| U.S. Treasury Bonds(k) | | | 3.625 | | | | 08/15/43 | | | | 11,120 | | | | 11,848,013 | |
| U.S. Treasury Notes | | | 0.375 | | | | 01/31/26 | | | | 40,970 | | | | 37,237,889 | |
| U.S. Treasury Notes | | | 1.375 | | | | 01/31/25 | | | | 20,645 | | | | 19,824,039 | |
| U.S. Treasury Notes | | | 1.500 | | | | 11/30/28 | | | | 19,740 | | | | 18,006,581 | |
| U.S. Treasury Notes(k) | | | 2.250 | | | | 11/15/24 | | | | 40,395 | | | | 39,779,608 | |
See Notes to Financial Statements.
34
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | Value | |
| | | | |
| U.S. TREASURY OBLIGATIONS (Continued) | | | | | | | | | | | | | | | | |
| U.S. Treasury Notes | | | 2.250% | | | | 11/15/27 | | | | 150 | | | $ | 144,527 | |
| U.S. Treasury Notes | | | 2.375 | | | | 03/31/29 | | | | 4,875 | | | | 4,699,043 | |
| U.S. Treasury Strips Coupon | | | 2.415(s) | | | | 11/15/40 | | | | 1,200 | | | | 658,594 | |
| U.S. Treasury Strips Coupon | | | 3.019(s) | | | | 11/15/35 | | | | 870 | | | | 575,423 | |
| | | | | | | | | | | | | | | | |
| | | | |
| TOTAL U.S. TREASURY OBLIGATIONS
(cost $204,556,516) | | | | | | | | | | | | | | | 188,780,022 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | Shares | | | | |
| | | | |
| COMMON STOCKS 1.2% | | | | | | | | | | | | | | | | |
| | | | |
| Entertainment 0.0% | | | | | | | | | | | | | | | | |
| Codere New Topco SA (Spain)^ | | | | | | | | | | | 29,207 | | | | — | |
| | | | |
| Gas Utilities 0.3% | | | | | | | | | | | | | | | | |
| Ferrellgas Partners LP (Class B Stock) | | | | | | | | | | | 17,034 | | | | 3,662,310 | |
| | | | |
| Oil, Gas & Consumable Fuels 0.8% | | | | | | | | | | | | | | | | |
| Chesapeake Energy Corp. | | | | | | | | | | | 98,741 | | | | 8,098,737 | |
| Chesapeake Energy Corp. Backstop Commitment | | | | | | | | | | | 1,449 | | | | 118,847 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 8,217,584 | |
| | | | |
| Wireless Telecommunication Services 0.1% | | | | | | | | | | | | | | | | |
| Intelsat Emergence SA (Luxembourg)* | | | | | | | | | | | 19,659 | | | | 637,689 | |
| | | | | | | | | | | | | | | | |
| | | | |
| TOTAL COMMON STOCKS
(cost $5,433,715) | | | | | | | | | | | | | | | 12,517,583 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | Units | | | | |
| | | | |
| RIGHTS* 0.0% | | | | | | | | | | | | | | | | |
| | | | |
| Diversified Telecommunication Services | | | | | | | | | | | | | | | | |
| Intelsat Jackson Holdings SA, Series A (Luxembourg), expiring 12/05/25^ | | | | | | | | | | | 2,057 | | | | 3,921 | |
| Intelsat Jackson Holdings SA, Series B (Luxembourg), expiring 12/05/25^ | | | | | | | | | | | 2,057 | | | | 723 | |
| | | | | | | | | | | | | | | | |
| | | | |
| TOTAL RIGHTS
(cost $0) | | | | | | | | | | | | | | | 4,644 | |
| | | | | | | | | | | | | | | | |
See Notes to Financial Statements.
PGIM Absolute Return Bond Fund 35
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | | | | | | | Units | | | Value | |
| | | | |
| WARRANTS* 0.0% | | | | | | | | | | | | | | | | |
| | | | |
| Chemicals | | | | | | | | | | | | | | | | |
| TPC Group, Inc., expiring 08/01/24 (original cost $0; purchased 02/02/21)^(f)
(cost $0) | | | | | | | | | | | 1,190,967 | | | $ | 5,598 | |
| | | | | | | | | | | | | | | | |
| | | | |
| TOTAL LONG-TERM INVESTMENTS
(cost $932,135,210) | | | | | | | | | | | | | | | 879,997,553 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | Shares | | | | |
| | | | |
| SHORT-TERM INVESTMENTS 20.1% | | | | | | | | | | | | | | | | |
| | | | |
| AFFILIATED MUTUAL FUNDS 6.5% | | | | | | | | | | | | | | | | |
| PGIM Core Short-Term Bond Fund(wc) | | | | | | | | | | | 5,495,946 | | | | 50,123,031 | |
| PGIM Institutional Money Market Fund
(cost $20,321,024; includes $20,314,699 of cash collateral forsecurities on loan)(b)(wc) | | | | | | | | | | | 20,347,224 | | | | 20,330,946 | |
| | | | | | | | | | | | | | | | |
| | | | |
| TOTAL AFFILIATED MUTUAL FUNDS
(cost $70,444,055) | | | | | | | | | | | | | | | 70,453,977 | |
| | | | | | | | | | | | | | | | |
| | | | |
| UNAFFILIATED FUND 12.9% | | | | | | | | | | | | | | | | |
| Dreyfus Government Cash Management (Institutional Shares)
(cost $140,656,880) | | | | | | | | | | | 140,656,880 | | | | 140,656,880 | |
| | | | | | | | | | | | | | | | |
| | | | |
| OPTIONS PURCHASED*~ 0.7%
(cost $3,268,400) | | | | | | | | | | | | | | | 7,790,671 | |
| | | | | | | | | | | | | | | | |
| | | | |
| TOTAL SHORT-TERM INVESTMENTS
(cost $214,369,335) | | | | | | | | | | | | | | | 218,901,528 | |
| | | | | | | | | | | | | | | | |
| | | | |
| TOTAL INVESTMENTS, BEFORE OPTIONS WRITTEN 100.8%
(cost$1,146,504,545) | | | | | | | | | | | | | | | 1,098,899,081 | |
| | | | | | | | | | | | | | | | |
| | | | |
| OPTIONS WRITTEN*~ (0.5)%
(premiums received $3,334,908) | | | | | | | | | | | | | | | (5,645,380 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| TOTAL INVESTMENTS, NET OF OPTIONS WRITTEN 100.3%
(cost$1,143,169,637) | | | | | | | | | | | | | | | 1,093,253,701 | |
| Liabilities in excess of other assets(z) (0.3)% | | | | | | | | | | | | | | | (3,208,225 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| NET ASSETS 100.0% | | | | | | | | | | | | | | $ | 1,090,045,476 | |
| | | | | | | | | | | | | | | | |
Below is a list of theabbreviation(s) used in the semiannual report:
AUD—Australian Dollar
BRL—Brazilian Real
CAD—Canadian Dollar
See Notes to Financial Statements.
36
CHF—Swiss Franc
CLP—Chilean Peso
CNH—Chinese Renminbi
COP—Colombian Peso
CZK—Czech Koruna
EUR—Euro
GBP—British Pound
HUF—Hungarian Forint
IDR—Indonesian Rupiah
ILS—Israeli Shekel
INR—Indian Rupee
JPY—Japanese Yen
KRW—South Korean Won
MXN—Mexican Peso
NZD—New Zealand Dollar
PEN—Peruvian Nuevo Sol
PHP—PhilippinePeso
PLN—Polish Zloty
SGD—SingaporeDollar
THB—Thai Baht
TWD—New TaiwaneseDollar
USD—US Dollar
ZAR—SouthAfrican 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
ABS—Asset-Backed Security
BABs—Build AmericaBonds
CDX—Credit Derivative Index
CLO—Collateralized Loan Obligation
CMBX—Commercial Mortgage-Backed Index
EMTN—Euro Medium Term Note
EURIBOR—EuroInterbank Offered Rate
FHLMC—Federal Home Loan Mortgage Corporation
GMTN—Global Medium Term Note
IO—InterestOnly (Principal amount represents notional)
LIBOR—London Interbank Offered Rate
LP—Limited Partnership
M—Monthly paymentfrequency for swaps
MASTR—Morgan Stanley Structured Asset Security
MTN—Medium Term Note
OTC—Over-the-counter
PIK—Payment-in-Kind
PJSC—Public Joint-Stock Company
Q—Quarterly payment frequency for swaps
REITs—Real Estate Investment Trust
S—Semiannual payment frequency for swaps
SOFR—Secured Overnight Financing Rate
SONIA—Sterling Overnight Index Average
STRIPs—Separate Trading of Registered Interest and Principal of Securities
| * | Non-income producing security. |
| # | Principal or notional amount is shown in U.S. dollars unless otherwise stated. |
See Notes to Financial Statements.
PGIM Absolute Return Bond Fund 37
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
| ~ | See tables subsequent to the Schedule of Investments for options detail. |
| ^ | Indicates a Level 3 instrument. The aggregate value of Level 3 instruments is $10,928,587 and 1.0% of netassets. |
| (a) | All or a portion of security is on loan. The aggregate market value of such securities, including those sold and pendingsettlement, is $19,209,902; cash collateral of $20,314,699 (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 lastbusiness 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 includesdividend reinvestment. |
| (c) | Variable rate instrument. The interest rate shown reflects the rate in effect at April 30, 2022. |
| (cc) | Variable rate instrument. The rate shown is based on the latest available information as of April 30, 2022. Certainvariable 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 anaffiliate of the issuer and is considered restricted as to disposition under federal securities law; the aggregate original cost of such securities is $3,030,704. The aggregate value of $1,772,860 is 0.2% of net assets. |
| (ff) | Variable rate security. Security may be issued at a fixed coupon rate, which converts to a variable rate at a specifieddate. 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. |
| (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 isafter 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. |
| (wc) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Short-Term Bond Fund, PGIM CoreUltra Short Bond Fund and PGIM Institutional Money Market Fund, if applicable. |
| (z) | Includes net unrealized appreciation/(depreciation) and/or market value of the below holdings which are excluded from theSchedule of Investments: |
Options Purchased:
OTCTraded
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Description | | Call/
Put | | | Counterparty | | Expiration
Date | | | Strike | | | Contracts | | | Notional
Amount
(000)# | | | Value | |
| Currency Option USD vs JPY | | | Call | | | Barclays Bank PLC | | | 10/27/23 | | | | 115.00 | | | | — | | | | 39,000 | | | $ | 3,467,456 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| (cost $493,824) | | | | | | | | | | | | | | | | | | | | | | | | | | |
OTC Swaptions
| | | | | | | | | | | | | | | | | | | | | | |
| Description | | Call/
Put | | | Counterparty | | Expiration
Date | | Strike | | Receive | | Pay | | Notional
Amount
(000)# | | | Value | |
| CDX.NA.IG.37.V1, 12/20/26 | | | Call | | | Citibank, N.A. | | 05/18/22 | | 0.35% | | 1.00%(Q) | | CDX.NA.IG.37.V1(Q) | | | 158,830 | | | $ | — | |
| CDX.NA.IG.38.V1, 06/20/27 | | | Call | | | BNP Paribas S.A. | | 05/18/22 | | 0.35% | | 1.00%(Q) | | CDX.NA.IG.38.V1(Q) | | | 45,880 | | | | — | |
See Notes to Financial Statements.
38
Options Purchased (continued):
OTC Swaptions
| | | | | | | | | | | | | | | | | | | | | | | | |
| Description | | Call/
Put | | Counterparty | | Expiration
Date | | | Strike | | | Receive | | Pay | | Notional
Amount
(000)# | | | Value | |
| CDX.NA.IG.38.V1, 06/20/27 | | Call | | Goldman Sachs International | | | 05/18/22 | | | | 0.35% | | | 1.00%(Q) | | CDX.NA.IG.38.V1(Q) | | | 45,180 | | | $ | — | |
| CDX.NA.IG.38.V1, 06/20/27 | | Call | | BNP Paribas S.A. | | | 06/15/22 | | | | 0.35% | | | 1.00%(Q) | | CDX.NA.IG.38.V1(Q) | | | 46,060 | | | | 63 | |
| CDX.NA.IG.38.V1, 06/20/27 | | Call | | Goldman Sachs International | | | 06/15/22 | | | | 0.35% | | | 1.00%(Q) | | CDX.NA.IG.38.V1(Q) | | | 45,230 | | | | 62 | |
| CDX.NA.IG.38.V1, 06/20/27 | | Call | | Morgan Stanley & Co. International PLC | | | 06/15/22 | | | | 0.35% | | | 1.00%(Q) | | CDX.NA.IG.38.V1(Q) | | | 90,470 | | | | 124 | |
| CDX.NA.IG.38.V1, 06/20/27 | | Call | | Bank of America, N.A. | | | 06/15/22 | | | | 0.45% | | | 1.00%(Q) | | CDX.NA.IG.38.V1(Q) | | | 48,620 | | | | 716 | |
| CDX.NA.IG.38.V1, 06/20/27 | | Call | | Barclays Bank PLC | | | 07/20/22 | | | | 0.35% | | | 1.00%(Q) | | CDX.NA.IG.38.V1(Q) | | | 45,180 | | | | 128 | |
| CDX.NA.IG.38.V1, 06/20/27 | | Call | | Barclays Bank PLC | | | 07/20/22 | | | | 0.35% | | | 1.00%(Q) | | CDX.NA.IG.38.V1(Q) | | | 47,320 | | | | 135 | |
| CDX.NA.IG.38.V1, 06/20/27 | | Call | | Citibank, N.A. | | | 07/20/22 | | | | 0.35% | | | 1.00%(Q) | | CDX.NA.IG.38.V1(Q) | | | 45,180 | | | | 128 | |
| CDX.NA.IG.38.V1, 06/20/27 | | Call | | Morgan Stanley & Co. International PLC | | | 07/20/22 | | | | 0.35% | | | 1.00%(Q) | | CDX.NA.IG.38.V1(Q) | | | 47,320 | | | | 135 | |
| CDX.NA.IG.38.V1, 06/20/27 | | Call | | Barclays Bank PLC | | | 08/17/22 | | | | 0.35% | | | 1.00%(Q) | | CDX.NA.IG.38.V1(Q) | | | 47,320 | | | | 274 | |
| CDX.NA.HY.38.V1, 06/20/27 | | Put | | Morgan Stanley & Co. International PLC | | | 05/18/22 | | | $ | 97.00 | | | CDX.NA.HY.38.V1(Q) | | 5.00%(Q) | | | 5,300 | | | | 12,456 | |
| CDX.NA.HY.38.V1, 06/20/27 | | Put | | Morgan Stanley & Co. International PLC | | | 06/15/22 | | | $ | 94.00 | | | CDX.NA.HY.38.V1(Q) | | 5.00%(Q) | | | 5,300 | | | | 23,727 | |
| CDX.NA.IG.37.V1, 12/20/26 | | Put | | Citibank, N.A. | | | 05/18/22 | | | | 0.70% | | | CDX.NA.IG.37.V1(Q) | | 1.00%(Q) | | | 158,830 | | | | 684,864 | |
| CDX.NA.IG.38.V1, 06/20/27 | | Put | | Goldman Sachs International | | | 05/18/22 | | | | 0.75% | | | CDX.NA.IG.38.V1(Q) | | 1.00%(Q) | | | 45,180 | | | | 225,168 | |
| CDX.NA.IG.38.V1, 06/20/27 | | Put | | BNP Paribas S.A. | | | 05/18/22 | | | | 0.78% | | | CDX.NA.IG.38.V1(Q) | | 1.00%(Q) | | | 45,880 | | | | 191,168 | |
| CDX.NA.IG.38.V1, 06/20/27 | | Put | | Bank of America, N.A. | | | 06/15/22 | | | | 0.75% | | | CDX.NA.IG.38.V1(Q) | | 1.00%(Q) | | | 48,620 | | | | 301,466 | |
| CDX.NA.IG.38.V1, 06/20/27 | | Put | | BNP Paribas S.A. | | | 06/15/22 | | | | 0.75% | | | CDX.NA.IG.38.V1(Q) | | 1.00%(Q) | | | 46,060 | | | | 285,593 | |
| CDX.NA.IG.38.V1, 06/20/27 | | Put | | Goldman Sachs International | | | 06/15/22 | | | | 0.75% | | | CDX.NA.IG.38.V1(Q) | | 1.00%(Q) | | | 45,230 | | | | 280,446 | |
| CDX.NA.IG.38.V1, 06/20/27 | | Put | | Morgan Stanley & Co. International PLC | | | 06/15/22 | | | | 0.75% | | | CDX.NA.IG.38.V1(Q) | | 1.00%(Q) | | | 90,470 | | | | 560,954 | |
See Notes to Financial Statements.
PGIM Absolute Return Bond Fund 39
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Options Purchased (continued):
OTC Swaptions
| | | | | | | | | | | | | | | | | | | | | | | | |
| Description | | Call/
Put | | Counterparty | | Expiration
Date | | | Strike | | | Receive | | Pay | | Notional
Amount
(000)# | | | Value | |
| CDX.NA.IG.38.V1, 06/20/27 | | Put | | Barclays Bank PLC | | | 07/20/22 | | | | 0.70% | | | CDX.NA.IG.38.V1(Q) | | 1.00%(Q) | | | 47,320 | | | $ | 418,028 | |
| CDX.NA.IG.38.V1, 06/20/27 | | Put | | Morgan Stanley & Co. International PLC | | | 07/20/22 | | | | 0.75% | | | CDX.NA.IG.38.V1(Q) | | 1.00%(Q) | | | 47,320 | | | | 351,750 | |
| CDX.NA.IG.38.V1, 06/20/27 | | Put | | Barclays Bank PLC | | | 07/20/22 | | | | 0.78% | | | CDX.NA.IG.38.V1(Q) | | 1.00%(Q) | | | 45,180 | | | | 309,768 | |
| CDX.NA.IG.38.V1, 06/20/27 | | Put | | Citibank, N.A. | | | 07/20/22 | | | | 0.78% | | | CDX.NA.IG.38.V1(Q) | | 1.00%(Q) | | | 45,180 | | | | 309,768 | |
| CDX.NA.IG.38.V1, 06/20/27 | | Put | | Barclays Bank PLC | | | 08/17/22 | | | | 0.78% | | | CDX.NA.IG.38.V1(Q) | | 1.00%(Q) | | | 47,320 | | | | 366,294 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| Total OTC Swaptions (cost $2,774,576) | | | | | | | | | | | | | | | | | | $ | 4,323,215 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| Total Options Purchased (cost $3,268,400) | | | | | | | | | | | | | | | $ | 7,790,671 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Options Written:
OTC Traded
| | | | | | | | | | | | | | | | | | | | | | | | |
| Description | | Call/
Put | | Counterparty | | Expiration
Date | | | Strike | | | Contracts | | | Notional
Amount
(000)# | | | Value | |
| Currency Option USD vs JPY | | Call | | Bank of America, N.A. | | | 10/27/23 | | | | 115.00 | | | | — | | | | 39,000 | | | $ | (3,467,456 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (premiums received $539,994) | | | | | | | | | | | | | | | | | | | | | | |
OTC Swaptions
| | | | | | | | | | | | | | | | | | | | | | |
| Description | | Call/
Put | | Counterparty | | Expiration
Date | | Strike | | | Receive | | Pay | | Notional
Amount
(000)# | | | Value | |
| CDX.NA.IG.37.V1, 12/20/26 | | Call | | Citibank, N.A. | | 05/18/22 | | | 0.63% | | | CDX.NA.IG.37.V1(Q) | | 1.00%(Q) | | | 158,830 | | | $ | (5,663 | ) |
| CDX.NA.IG.38.V1, 06/20/27 | | Call | | BNP Paribas S.A. | | 05/18/22 | | | 0.68% | | | CDX.NA.IG.38.V1(Q) | | 1.00%(Q) | | | 45,880 | | | | (3,535 | ) |
| CDX.NA.IG.38.V1, 06/20/27 | | Call | | Goldman Sachs International | | 05/18/22 | | | 0.68% | | | CDX.NA.IG.38.V1(Q) | | 1.00%(Q) | | | 45,180 | | | | (3,481 | ) |
| CDX.NA.IG.38.V1, 06/20/27 | | Call | | Bank of America, N.A. | | 06/15/22 | | | 0.65% | | | CDX.NA.IG.38.V1(Q) | | 1.00%(Q) | | | 48,620 | | | | (8,455 | ) |
| CDX.NA.IG.38.V1, 06/20/27 | | Call | | BNP Paribas S.A. | | 06/15/22 | | | 0.68% | | | CDX.NA.IG.38.V1(Q) | | 1.00%(Q) | | | 46,060 | | | | (11,256 | ) |
| CDX.NA.IG.38.V1, 06/20/27 | | Call | | Goldman Sachs International | | 06/15/22 | | | 0.68% | | | CDX.NA.IG.38.V1(Q) | | 1.00%(Q) | | | 45,230 | | | | (11,053 | ) |
See Notes to Financial Statements.
40
Options Written (continued):
OTC Swaptions
| | | | | | | | | | | | | | | | | | | | | | |
| Description | | Call/
Put | | Counterparty | | Expiration
Date | | Strike | | | Receive | | Pay | | Notional
Amount
(000)# | | | Value | |
| CDX.NA.IG.38.V1, 06/20/27 | | Call | | Morgan Stanley & Co. International PLC | | 06/15/22 | | | 0.68% | | | CDX.NA.IG.38.V1(Q) | | 1.00%(Q) | | | 90,470 | | | $ | (22,109) | |
| CDX.NA.IG.38.V1, 06/20/27 | | Call | | Barclays Bank PLC | | 07/20/22 | | | 0.63% | | | CDX.NA.IG.38.V1(Q) | | 1.00%(Q) | | | 47,320 | | | | (13,171) | |
| CDX.NA.IG.38.V1, 06/20/27 | | Call | | Morgan Stanley & Co. International PLC | | 07/20/22 | | | 0.65% | | | CDX.NA.IG.38.V1(Q) | | 1.00%(Q) | | | 47,320 | | | | (16,228) | |
| CDX.NA.IG.38.V1, 06/20/27 | | Call | | Barclays Bank PLC | | 07/20/22 | | | 0.68% | | | CDX.NA.IG.38.V1(Q) | | 1.00%(Q) | | | 45,180 | | | | (22,763) | |
| CDX.NA.IG.38.V1, 06/20/27 | | Call | | Citibank, N.A. | | 07/20/22 | | | 0.68% | | | CDX.NA.IG.38.V1(Q) | | 1.00%(Q) | | | 45,180 | | | | (22,763) | |
| CDX.NA.IG.38.V1, 06/20/27 | | Call | | Barclays Bank PLC | | 08/17/22 | | | 0.70% | | | CDX.NA.IG.38.V1(Q) | | 1.00%(Q) | | | 47,320 | | | | (48,648) | |
| CDX.NA.HY.38.V1, 06/20/27 | | Put | | Morgan Stanley & Co. International PLC | | 06/15/22 | | $ | 100.00 | | | 5.00%(Q) | | CDX.NA.HY.38.V1(Q) | | | 5,300 | | | | (73,980) | |
| CDX.NA.HY.38.V1, 06/20/27 | | Put | | Morgan Stanley & Co. International PLC | | 08/17/22 | | $ | 98.00 | | | 5.00%(Q) | | CDX.NA.HY.38.V1(Q) | | | 5,300 | | | | (103,851) | |
| CDX.NA.IG.37.V1, 12/20/26 | | Put | | Citibank, N.A. | | 05/18/22 | | | 0.90% | | | 1.00%(Q) | | CDX.NA.IG.37.V1(Q) | | | 158,830 | | | | (149,820) | |
| CDX.NA.IG.38.V1, 06/20/27 | | Put | | Goldman Sachs International | | 05/18/22 | | | 0.93% | | | 1.00%(Q) | | CDX.NA.IG.38.V1(Q) | | | 45,180 | | | | (62,467) | |
| CDX.NA.IG.38.V1, 06/20/27 | | Put | | BNP Paribas S.A. | | 05/18/22 | | | 1.00% | | | 1.00%(Q) | | CDX.NA.IG.38.V1(Q) | | | 45,880 | | | | (37,175) | |
| CDX.NA.IG.38.V1, 06/20/27 | | Put | | Bank of America, N.A. | | 06/15/22 | | | 0.95% | | | 1.00%(Q) | | CDX.NA.IG.38.V1(Q) | | | 48,620 | | | | (132,084) | |
| CDX.NA.IG.38.V1, 06/20/27 | | Put | | BNP Paribas S.A. | | 06/15/22 | | | 0.95% | | | 1.00%(Q) | | CDX.NA.IG.38.V1(Q) | | | 46,060 | | | | (125,130) | |
| CDX.NA.IG.38.V1, 06/20/27 | | Put | | Goldman Sachs International | | 06/15/22 | | | 0.95% | | | 1.00%(Q) | | CDX.NA.IG.38.V1(Q) | | | 45,230 | | | | (122,875) | |
| CDX.NA.IG.38.V1, 06/20/27 | | Put | | Morgan Stanley & Co. International PLC | | 06/15/22 | | | 0.95% | | | 1.00%(Q) | | CDX.NA.IG.38.V1(Q) | | | 90,470 | | | | (245,777) | |
| CDX.NA.IG.38.V1, 06/20/27 | | Put | | Barclays Bank PLC | | 07/20/22 | | | 0.95% | | | 1.00%(Q) | | CDX.NA.IG.38.V1(Q) | | | 47,320 | | | | (197,102) | |
See Notes to Financial Statements.
PGIM Absolute Return Bond Fund 41
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Options Written (continued):
OTC Swaptions
| | | | | | | | | | | | | | | | | | | | | | |
| Description | | Call/
Put | | Counterparty | | Expiration
Date | | Strike | | | Receive | | Pay | | Notional
Amount
(000)# | | | Value | |
| CDX.NA.IG.38.V1, 06/20/27 | | Put | | Morgan Stanley & Co. International PLC | | 07/20/22 | | | 0.98% | | | 1.00%(Q) | | CDX.NA.IG.38.V1(Q) | | | 47,320 | | | $ | (184,322 | ) |
| CDX.NA.IG.38.V1, 06/20/27 | | Put | | Barclays Bank PLC | | 07/20/22 | | | 1.05% | | | 1.00%(Q) | | CDX.NA.IG.38.V1(Q) | | | 45,180 | | | | (145,448 | ) |
| CDX.NA.IG.38.V1, 06/20/27 | | Put | | Citibank, N.A. | | 07/20/22 | | | 1.05% | | | 1.00%(Q) | | CDX.NA.IG.38.V1(Q) | | | 45,180 | | | | (145,448 | ) |
| CDX.NA.IG.38.V1, 06/20/27 | | Put | | Barclays Bank PLC | | 08/17/22 | | | 1.03% | | | 1.00%(Q) | | CDX.NA.IG.38.V1(Q) | | | 47,320 | | | | (204,446 | ) |
| GS_21-PJA†† ^ | | Put | | Goldman Sachs International | | 06/17/24 | | | 0.25% | | | 0.25%(M) | | GS_21-PJA(M) | | | 16,440 | | | | (547 | ) |
| GS_21-PJA^ | | Put | | Goldman Sachs International | | 11/15/24 | | | 0.50% | | | 0.50%(S) | | GS_21-PJA(Q) | | | 8,530 | | | | (301 | ) |
| iTraxx.XO.35. V1,06/20/26 | | Put | | Barclays Bank PLC | | 06/15/22 | | | 7.00% | | | 5.00%(Q) | | iTraxx.XO.35.V1(Q) | | EUR | 10,130 | | | | (13,494 | ) |
| iTraxx.XO.36. V1,12/20/26^ | | Put | | Barclays Bank PLC | | 09/21/22 | | | 9.00% | | | 5.00%(Q) | | iTraxx.XO.36.V1(Q) | | EUR | 8,170 | | | | (44,532 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| Total OTC Swaptions (premiums received $2,794,914) | | | | | | | | | | | | | | $ | (2,177,924 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| Total Options Written (premiums received $3,334,908) | | | | | | | | | | | | | | $ | (5,645,380 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| †† | The value of the contract, GS_21-PJA, is derived from a pool of senior prime jumbomortgages. |
Futures contracts outstanding at April 30, 2022:
| | | | | | | | | | | | | | | | | |
| Number of Contracts | | Type | | Expiration
Date | | Current
Notional
Amount | | Value /
Unrealized
Appreciation
(Depreciation) |
| | | |
| Short Positions: | | | | | | | | | | | | | | | |
| 58 | | 30 Day Federal Funds | | | | May 2022 | | | | $ | 23,978,876 | | | | $ | 204,129 | |
| 48 | | 30 Day Federal Funds | | | | Jun. 2022 | | | | | 19,771,582 | | | | | 240,940 | |
| 14 | | 30 Day Federal Funds | | | | Jul. 2022 | | | | | 5,746,001 | | | | | 91,276 | |
| 908 | | 2 Year U.S. Treasury Notes | | | | Jun. 2022 | | | | | 191,417,750 | | | | | 2,331,603 | |
| 161 | | 5 Year Euro-Bobl | | | | Jun. 2022 | | | | | 21,601,135 | | | | | 993,018 | |
| 951 | | 5 Year U.S. Treasury Notes | | | | Jun. 2022 | | | | | 107,150,958 | | | | | 1,021,220 | |
| 150 | | 10 Year Euro-Bund | | | | Jun. 2022 | | | | | 24,304,466 | | | | | 2,131,891 | |
| 247 | | 10 Year U.S. Treasury Notes | | | | Jun. 2022 | | | | | 29,431,594 | | | | | 155,396 | |
| 242 | | 10 Year U.S. Ultra Treasury Notes | | | | Jun. 2022 | | | | | 31,218,000 | | | | | 2,573,767 | |
| 881 | | 20 Year U.S. Treasury Bonds | | | | Jun. 2022 | | | | | 123,945,688 | | | | | 8,215,713 | |
See Notes to Financial Statements.
42
Futures contracts outstanding at April 30, 2022 (continued):
| | | | | | | | | | | | | | | | | |
| Number of Contracts | | Type | | Expiration
Date | | Current
Notional
Amount | | Value /
Unrealized
Appreciation
(Depreciation) |
| | | |
| Short Positions (cont’d): | | | | | | | | | | | | | | | |
| 140 | | 30 Year U.S. Ultra Treasury Bonds | | | | Jun. 2022 | | | | $ | 22,461,250 | | | | $ | 437,232 | |
| 76 | | Euro Schatz Index | | | | Jun. 2022 | | | | | 8,831,008 | | | | | 145,817 | |
| | | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | $ | 18,542,002 | |
| | | | | | | | | | | | | | | | | |
Forward foreign currency exchange contracts outstanding at April 30, 2022:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Purchase Contracts | | Counterparty | | Notional
Amount
(000) | | Value at
Settlement
Date | | Current
Value | | Unrealized
Appreciation | | Unrealized
Depreciation |
| |
| OTC Forward Foreign Currency Exchange Contracts: | | | | | | |
| Australian Dollar, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 07/19/22 | | JPMorgan Chase Bank, N.A. | | | | AUD | | | | | 893 | | | | $ | 641,055 | | | | $ | 632,126 | | | | $ | — | | | | $ | (8,929 | ) |
| Expiring 10/31/23 | | JPMorgan Chase Bank, N.A. | | | | AUD | | | | | 3,180 | | | | | 2,208,097 | | | | | 2,246,290 | | | | | 38,193 | | | | | — | |
| Brazilian Real, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 05/03/22 | | Citibank, N.A. | | | | BRL | | | | | 4,892 | | | | | 1,036,000 | | | | | 988,266 | | | | | — | | | | | (47,734 | ) |
| Expiring 05/03/22 | | Goldman Sachs International | | | | BRL | | | | | 3,138 | | | | | 657,000 | | | | | 633,883 | | | | | — | | | | | (23,117 | ) |
| Expiring 06/02/22 | | Citibank, N.A. | | | | BRL | | | | | 5,640 | | | | | 1,188,980 | | | | | 1,128,001 | | | | | — | | | | | (60,979 | ) |
| Expiring 06/02/22 | | Goldman Sachs International | | | | BRL | | | | | 2,142 | | | | | 427,000 | | | | | 428,458 | | | | | 1,458 | | | | | — | |
| Canadian Dollar, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 07/19/22 | | Barclays Bank PLC | | | | CAD | | | | | 2,710 | | | | | 2,146,627 | | | | | 2,108,623 | | | | | — | | | | | (38,004 | ) |
| Chilean Peso, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 06/15/22 | | Citibank, N.A. | | | | CLP | | | | | 1,085,501 | | | | | 1,329,000 | | | | | 1,260,689 | | | | | — | | | | | (68,311 | ) |
| Expiring 06/15/22 | | UBS AG | | | | CLP | | | | | 557,487 | | | | | 651,000 | | | | | 647,460 | | | | | — | | | | | (3,540 | ) |
| Chinese Renminbi, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 05/23/22 | | Citibank, N.A. | | | | CNH | | | | | 16,983 | | | | | 2,574,000 | | | | | 2,551,529 | | | | | — | | | | | (22,471 | ) |
| Expiring 05/23/22 | | Goldman Sachs International | | | | CNH | | | | | 8,644 | | | | | 1,300,000 | | | | | 1,298,603 | | | | | — | | | | | (1,397 | ) |
| Expiring 05/23/22 | | HSBC Bank PLC | | | | CNH | | | | | 13,153 | | | | | 2,068,000 | | | | | 1,976,138 | | | | | — | | | | | (91,862 | ) |
| Expiring 05/23/22 | | HSBC Bank PLC | | | | CNH | | | | | 8,202 | | | | | 1,292,000 | | | | | 1,232,324 | | | | | — | | | | | (59,676 | ) |
| Colombian Peso, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 06/15/22 | | BNP Paribas S.A. | | | | COP | | | | | 2,590,329 | | | | | 651,000 | | | | | 649,241 | | | | | — | | | | | (1,759 | ) |
| Expiring 06/15/22 | | Citibank, N.A. | | | | COP | | | | | 2,745,432 | | | | | 720,000 | | | | | 688,116 | | | | | — | | | | | (31,884 | ) |
| Expiring 06/15/22 | | Citibank, N.A. | | | | COP | | | | | 2,500,319 | | | | | 647,000 | | | | | 626,680 | | | | | — | | | | | (20,320 | ) |
| Expiring 06/15/22 | | JPMorgan Chase Bank, N.A. | | | | COP | | | | | 2,602,177 | | | | | 651,001 | | | | | 652,210 | | | | | 1,209 | | | | | — | |
| Czech Koruna, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 07/19/22 | | Morgan Stanley & Co. International PLC | | | | CZK | | | | | 16,384 | | | | | 722,000 | | | | | 695,927 | | | | | — | | | | | (26,073 | ) |
See Notes to Financial Statements.
PGIM Absolute Return Bond Fund 43
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Forward foreign currency exchange contracts outstanding at April 30, 2022 (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.): | | | | | | |
| Hungarian Forint, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 07/19/22 | | Barclays Bank PLC | | | | HUF | | | | | 473,760 | | | | $ | 1,342,287 | | | | $ | 1,306,726 | | | | $ | — | | | | $ | (35,561 | ) |
| Indian Rupee, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 06/15/22 | | Citibank, N.A. | | | | INR | | | | | 126,428 | | | | | 1,650,000 | | | | | 1,642,592 | | | | | — | | | | | (7,408 | ) |
| Expiring 06/15/22 | | Citibank, N.A. | | | | INR | | | | | 83,493 | | | | | 1,088,000 | | | | | 1,084,769 | | | | | — | | | | | (3,231 | ) |
| Expiring 06/15/22 | | JPMorgan Chase Bank, N.A. | | | | INR | | | | | 460,407 | | | | | 5,965,562 | | | | | 5,981,757 | | | | | 16,195 | | | | | — | |
| Expiring 06/15/22 | | JPMorgan Chase Bank, N.A. | | | | INR | | | | | 65,067 | | | | | 848,000 | | | | | 845,372 | | | | | — | | | | | (2,628 | ) |
| Expiring 06/15/22 | | JPMorgan Chase Bank, N.A. | | | | INR | | | | | 46,311 | | | | | 610,000 | | | | | 601,690 | | | | | — | | | | | (8,310 | ) |
| Indonesian Rupiah, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 06/15/22 | | JPMorgan Chase Bank, N.A. | | | | IDR | | | | | 12,849,492 | | | | | 885,000 | | | | | 879,172 | | | | | — | | | | | (5,828 | ) |
| Japanese Yen, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 05/31/22 | | Citibank, N.A. | | | | JPY | | | | | 92,578 | | | | | 849,426 | | | | | 714,140 | | | | | — | | | | | (135,286 | ) |
| Expiring 05/31/22 | | Deutsche Bank AG | | | | JPY | | | | | 662,163 | | | | | 6,130,000 | | | | | 5,107,870 | | | | | — | | | | | (1,022,130 | ) |
| Expiring 07/19/22 | | HSBC Bank PLC | | | | JPY | | | | | 127,101 | | | | | 1,018,259 | | | | | 982,871 | | | | | — | | | | | (35,388 | ) |
| Expiring 10/31/23 | | Barclays Bank PLC | | | | JPY | | | | | 487,838 | | | | | 5,118,000 | | | | | 3,940,698 | | | | | — | | | | | (1,177,302 | ) |
| Expiring 10/31/23 | | Deutsche Bank AG | | | | JPY | | | | | 498,249 | | | | | 5,220,000 | | | | | 4,024,801 | | | | | — | | | | | (1,195,199 | ) |
| Expiring 10/31/23 | | Goldman Sachs International | | | | JPY | | | | | 874,045 | | | | | 8,971,000 | | | | | 7,060,436 | | | | | — | | | | | (1,910,564 | ) |
| Expiring 10/31/23 | | Morgan Stanley & Co. International PLC | | | | JPY | | | | | 855,296 | | | | | 8,262,958 | | | | | 6,908,987 | | | | | — | | | | | (1,353,971 | ) |
| Mexican Peso, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 06/15/22 | | JPMorgan Chase Bank, N.A. | | | | MXN | | | | | 23,451 | | | | | 1,149,000 | | | | | 1,138,573 | | | | | — | | | | | (10,427 | ) |
| Expiring 06/15/22 | | JPMorgan Chase Bank, N.A. | | | | MXN | | | | | 13,375 | | | | | 615,000 | | | | | 649,346 | | | | | 34,346 | | | | | — | |
| Expiring 06/15/22 | | Morgan Stanley & Co. International PLC | | | | MXN | | | | | 42,192 | | | | | 2,000,257 | | | | | 2,048,470 | | | | | 48,213 | | | | | — | |
| Expiring 06/15/22 | | UBS AG | | | | MXN | | | | | 30,459 | | | | | 1,486,000 | | | | | 1,478,801 | | | | | — | | | | | (7,199 | ) |
| Expiring 06/15/22 | | UBS AG | | | | MXN | | | | | 13,342 | | | | | 615,000 | | | | | 647,779 | | | | | 32,779 | | | | | — | |
| Expiring 04/28/23 | | JPMorgan Chase Bank, N.A. | | | | MXN | | | | | 72,679 | | | | | 3,006,698 | | | | | 3,320,489 | | | | | 313,791 | | | | | — | |
| Expiring 04/28/23 | | Morgan Stanley & Co. International PLC | | | | MXN | | | | | 231,058 | | | | | 9,739,000 | | | | | 10,556,290 | | | | | 817,290 | | | | | — | |
| New Taiwanese Dollar, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 06/15/22 | | JPMorgan Chase Bank, N.A. | | | | TWD | | | | | 37,765 | | | | | 1,310,000 | | | | | 1,287,316 | | | | | — | | | | | (22,684 | ) |
| Expiring 06/15/22 | | UBS AG | | | | TWD | | | | | 81,960 | | | | | 2,860,000 | | | | | 2,793,806 | | | | | — | | | | | (66,194 | ) |
| Expiring 06/15/22 | | UBS AG | | | | TWD | | | | | 49,371 | | | | | 1,728,000 | | | | | 1,682,911 | | | | | — | | | | | (45,089 | ) |
See Notes to Financial Statements.
44
Forward foreign currency exchange contracts outstanding at April 30, 2022 (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.): | | | | | | |
| New Zealand Dollar, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 07/19/22 | | JPMorgan Chase Bank, N.A. | | | | NZD | | | | | 1,039 | | | | $ | 709,067 | | | | $ | 670,426 | | | | $ | — | | | | $ | (38,641 | ) |
| Peruvian Nuevo Sol, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 06/15/22 | | BNP Paribas S.A. | | | | PEN | | | | | 3,976 | | | | | 1,057,000 | | | | | 1,030,018 | | | | | — | | | | | (26,982 | ) |
| Expiring 06/15/22 | | BNP Paribas S.A. | | | | PEN | | | | | 2,135 | | | | | 563,301 | | | | | 553,051 | | | | | — | | | | | (10,250 | ) |
| Expiring 06/15/22 | | Citibank, N.A. | | | | PEN | | | | | 4,634 | | | | | 1,209,000 | | | | | 1,200,471 | | | | | — | | | | | (8,529 | ) |
| Philippine Peso, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 06/15/22 | | JPMorgan Chase Bank, N.A. | | | | PHP | | | | | 72,015 | | | | | 1,367,000 | | | | | 1,366,352 | | | | | — | | | | | (648 | ) |
| Expiring 06/15/22 | | JPMorgan Chase Bank, N.A. | | | | PHP | | | | | 68,358 | | | | | 1,297,000 | | | | | 1,296,974 | | | | | — | | | | | (26 | ) |
| Expiring 06/15/22 | | JPMorgan Chase Bank, N.A. | | | | PHP | | | | | 64,051 | | | | | 1,217,000 | | | | | 1,215,246 | | | | | — | | | | | (1,754 | ) |
| Expiring 06/15/22 | | JPMorgan Chase Bank, N.A. | | | | PHP | | | | | 33,433 | | | | | 634,000 | | | | | 634,331 | | | | | 331 | | | | | — | |
| Expiring 06/15/22 | | Standard Chartered Bank | | | | PHP | | | | | 129,640 | | | | | 2,457,000 | | | | | 2,459,682 | | | | | 2,682 | | | | | — | |
| Expiring 06/15/22 | | Standard Chartered Bank | | | | PHP | | | | | 108,451 | | | | | 2,050,000 | | | | | 2,057,664 | | | | | 7,664 | | | | | — | |
| Expiring 06/15/22 | | Standard Chartered Bank | | | | PHP | | | | | 59,394 | | | | | 1,126,000 | | | | | 1,126,898 | | | | | 898 | | | | | — | |
| Polish Zloty, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 07/19/22 | | HSBC Bank PLC | | | | PLN | | | | | 6,202 | | | | | 1,437,751 | | | | | 1,384,218 | | | | | — | | | | | (53,533 | ) |
| Expiring 07/19/22 | | HSBC Bank PLC | | | | PLN | | | | | 5,241 | | | | | 1,208,343 | | | | | 1,169,689 | | | | | — | | | | | (38,654 | ) |
| Singapore Dollar, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 06/15/22 | | Citibank, N.A. | | | | SGD | | | | | 2,735 | | | | | 2,017,000 | | | | | 1,977,586 | | | | | — | | | | | (39,414 | ) |
| Expiring 06/15/22 | | HSBC Bank PLC | | | | SGD | | | | | 2,160 | | | | | 1,590,000 | | | | | 1,561,804 | | | | | — | | | | | (28,196 | ) |
| Expiring 06/15/22 | | JPMorgan Chase Bank, N.A. | | | | SGD | | | | | 2,945 | | | | | 2,171,000 | | | | | 2,129,315 | | | | | — | | | | | (41,685 | ) |
| South African Rand, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 05/31/22 | | Morgan Stanley & Co. International PLC | | | | ZAR | | | | | 10,977 | | | | | 706,260 | | | | | 692,485 | | | | | — | | | | | (13,775 | ) |
| Expiring 05/31/22 | | Morgan Stanley & Co. International PLC | | | | ZAR | | | | | 7,904 | | | | | 515,310 | | | | | 498,582 | | | | | — | | | | | (16,728 | ) |
| Expiring 06/15/22 | | Barclays Bank PLC | | | | ZAR | | | | | 11,270 | | | | | 763,000 | | | | | 709,844 | | | | | — | | | | | (53,156 | ) |
| Expiring 06/15/22 | | Barclays Bank PLC | | | | ZAR | | | | | 10,223 | | | | | 651,000 | | | | | 643,905 | | | | | — | | | | | (7,095 | ) |
| Expiring 06/15/22 | | JPMorgan Chase Bank, N.A. | | | | ZAR | | | | | 14,617 | | | | | 922,000 | | | | | 920,706 | | | | | — | | | | | (1,294 | ) |
| Expiring 06/15/22 | | JPMorgan Chase Bank, N.A. | | | | ZAR | | | | | 10,394 | | | | | 651,000 | | | | | 654,676 | | | | | 3,676 | | | | | — | |
| Expiring 06/15/22 | | JPMorgan Chase Bank, N.A. | | | | ZAR | | | | | 10,319 | | | | | 651,000 | | | | | 649,965 | | | | | — | | | | | (1,035 | ) |
See Notes to Financial Statements.
PGIM Absolute Return Bond Fund 45
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Forward foreign currency exchange contracts outstanding at April 30, 2022 (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.): | | | | | | |
| South African Rand (cont’d.), | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 06/15/22 | | UBS AG | | | | ZAR | | | | | 28,058 | | | | $ | 1,790,000 | | | | $ | 1,767,288 | | | | $ | — | | | | $ | (22,712 | ) |
| South Korean Won, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 06/15/22 | | HSBC Bank PLC | | | | KRW | | | | | 1,569,605 | | | | | 1,277,000 | | | | | 1,242,668 | | | | | — | | | | | (34,332 | ) |
| Expiring 06/15/22 | | HSBC Bank PLC | | | | KRW | | | | | 1,281,412 | | | | | 1,058,000 | | | | | 1,014,502 | | | | | — | | | | | (43,498 | ) |
| Expiring 06/15/22 | | HSBC Bank PLC | | | | KRW | | | | | 750,446 | | | | | 607,000 | | | | | 594,134 | | | | | — | | | | | (12,866 | ) |
| Expiring 06/15/22 | | Standard Chartered Bank | | | | KRW | | | | | 1,170,819 | | | | | 961,000 | | | | | 926,946 | | | | | — | | | | | (34,054 | ) |
| Thai Baht, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 06/15/22 | | Goldman Sachs International | | | | THB | | | | | 38,626 | | | | | 1,161,000 | | | | | 1,128,644 | | | | | — | | | | | (32,356 | ) |
| Expiring 06/15/22 | | JPMorgan Chase Bank, N.A. | | | | THB | | | | | 13,207 | | | | | 397,000 | | | | | 385,907 | | | | | — | | | | | (11,093 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | | | | | | | | | $ | 127,598,239 | | | | $ | 120,794,203 | | | | | 1,318,725 | | | | | (8,122,761 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Sale Contracts | | Counterparty | | Notional
Amount
(000) | | Value at
Settlement
Date | | Current
Value | | Unrealized
Appreciation | | Unrealized
Depreciation |
| |
| OTC Forward Foreign Currency Exchange Contracts: | | | | | | |
| Australian Dollar, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 05/31/22 | | Morgan Stanley & Co. International PLC | | | | AUD | | | | | 1,263 | | | | $ | 953,616 | | | | $ | 892,903 | | | | $ | 60,713 | | | | $ | — | |
| Expiring 07/19/22 | | BNP Paribas S.A. | | | | AUD | | | | | 2,665 | | | | | 1,985,092 | | | | | 1,885,986 | | | | | 99,106 | | | | | — | |
| Brazilian Real, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 05/03/22 | | BNP Paribas S.A. | | | | BRL | | | | | 2,390 | | | | | 504,000 | | | | | 482,859 | | | | | 21,141 | | | | | — | |
| Expiring 05/03/22 | | Citibank, N.A. | | | | BRL | | | | | 5,640 | | | | | 1,200,189 | | | | | 1,139,290 | | | | | 60,899 | | | | | — | |
| British Pound, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 07/19/22 | | The Toronto-Dominion Bank | | | | GBP | | | | | 19,964 | | | | | 26,045,243 | | | | | 25,112,827 | | | | | 932,416 | | | | | — | |
| Chilean Peso, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 06/15/22 | | BNP Paribas S.A. | | | | CLP | | | | | 829,830 | | | | | 1,030,000 | | | | | 963,756 | | | | | 66,244 | | | | | — | |
| Expiring 06/15/22 | | Morgan Stanley & Co. International PLC | | | | CLP | | | | | 818,247 | | | | | 1,006,144 | | | | | 950,303 | | | | | 55,841 | | | | | — | |
| Expiring 06/15/22 | | UBS AG | | | | CLP | | | | | 880,396 | | | | | 1,104,000 | | | | | 1,022,483 | | | | | 81,517 | | | | | — | |
| Chinese Renminbi, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 05/23/22 | | JPMorgan Chase Bank, N.A. | | | | CNH | | | | | 67,121 | | | | | 10,509,135 | | | | | 10,084,167 | | | | | 424,968 | | | | | — | |
| Expiring 05/23/22 | | Morgan Stanley & Co. International PLC | | | | CNH | | | | | 12,660 | | | | | 1,985,000 | | | | | 1,901,987 | | | | | 83,013 | | | | | — | |
| Expiring 05/23/22 | | UBS AG | | | | CNH | | | | | 13,153 | | | | | 2,069,000 | | | | | 1,976,090 | | | | | 92,910 | | | | | — | |
| Expiring 05/23/22 | | UBS AG | | | | CNH | | | | | 8,517 | | | | | 1,328,000 | | | | | 1,279,655 | | | | | 48,345 | | | | | — | |
See Notes to Financial Statements.
46
Forward foreign currency exchange contracts outstanding at April 30, 2022 (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.): | | | | | | |
| Colombian Peso, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 06/15/22 | | Citibank, N.A. | | | | COP | | | | | 3,027,524 | | | | $ | 761,000 | | | | $ | 758,819 | | | | $ | 2,181 | | | | $ | — | |
| Expiring 06/15/22 | | HSBC Bank PLC | | | | COP | | | | | 3,301,584 | | | | | 858,000 | | | | | 827,510 | | | | | 30,490 | | | | | — | |
| Czech Koruna, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 07/19/22 | | Barclays Bank PLC | | | | CZK | | | | | 16,269 | | | | | 714,382 | | | | | 691,030 | | | | | 23,352 | | | | | — | |
| Euro, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 07/19/22 | | BNP Paribas S.A. | | | | EUR | | | | | 22,593 | | | | | 24,563,262 | | | | | 23,936,298 | | | | | 626,964 | | | | | — | |
| Expiring 07/19/22 | | BNP Paribas S.A. | | | | EUR | | | | | 580 | | | | | 628,000 | | | | | 614,462 | | | | | 13,538 | | | | | — | |
| Expiring 07/19/22 | | Deutsche Bank AG | | | | EUR | | | | | 29,257 | | | | | 31,936,583 | | | | | 30,996,117 | | | | | 940,466 | | | | | — | |
| Expiring 07/19/22 | | Standard Chartered Bank | | | | EUR | | | | | 29,645 | | | | | 32,477,503 | | | | | 31,407,744 | | | | | 1,069,759 | | | | | — | |
| Indian Rupee, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 06/15/22 | | Citibank, N.A. | | | | INR | | | | | 175,671 | | | | | 2,282,000 | | | | | 2,282,369 | | | | | — | | | | | (369 | ) |
| Expiring 06/15/22 | | HSBC Bank PLC | | | | INR | | | | | 173,102 | | | | | 2,233,000 | | | | | 2,248,999 | | | | | — | | | | | (15,999 | ) |
| Expiring 06/15/22 | | HSBC Bank PLC | | | | INR | | | | | 103,226 | | | | | 1,332,000 | | | | | 1,341,145 | | | | | — | | | | | (9,145 | ) |
| Expiring 06/15/22 | | JPMorgan Chase Bank, N.A. | | | | INR | | | | | 179,896 | | | | | 2,339,000 | | | | | 2,337,266 | | | | | 1,734 | | | | | — | |
| Expiring 06/15/22 | | Morgan Stanley & Co. International PLC | | | | INR | | | | | 157,553 | | | | | 2,047,000 | | | | | 2,046,985 | | | | | 15 | | | | | — | |
| Indonesian Rupiah, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 06/15/22 | | Citibank, N.A. | | | | IDR | | | | | 15,711,289 | | | | | 1,081,300 | | | | | 1,074,978 | | | | | 6,322 | | | | | — | |
| Expiring 06/15/22 | | Citibank, N.A. | | | | IDR | | | | | 3,192,461 | | | | | 219,700 | | | | | 218,430 | | | | | 1,270 | | | | | — | |
| Expiring 06/15/22 | | Goldman Sachs International | | | | IDR | | | | | 22,378,857 | | | | | 1,561,243 | | | | | 1,531,178 | | | | | 30,065 | | | | | — | |
| Expiring 06/15/22 | | JPMorgan Chase Bank, N.A. | | | | IDR | | | | | 18,588,712 | | | | | 1,286,000 | | | | | 1,271,853 | | | | | 14,147 | | | | | — | |
| Israeli Shekel, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 06/15/22 | | Bank of America, N.A. | | | | ILS | | | | | 3,303 | | | | | 1,021,440 | | | | | 991,879 | | | | | 29,561 | | | | | — | |
| Expiring 06/15/22 | | Bank of America, N.A. | | | | ILS | | | | | 2,616 | | | | | 802,560 | | | | | 785,498 | | | | | 17,062 | | | | | — | |
| Expiring 06/15/22 | | Barclays Bank PLC | | | | ILS | | | | | 3,552 | | | | | 1,085,000 | | | | | 1,066,628 | | | | | 18,372 | | | | | — | |
| Expiring 06/15/22 | | Citibank, N.A. | | | | ILS | | | | | 3,750 | | | | | 1,174,000 | | | | | 1,125,970 | | | | | 48,030 | | | | | — | |
| Expiring 06/15/22 | | HSBC Bank PLC | | | | ILS | | | | | 4,597 | | | | | 1,400,000 | | | | | 1,380,262 | | | | | 19,738 | | | | | — | |
| Expiring 06/15/22 | | JPMorgan Chase Bank, N.A. | | | | ILS | | | | | 4,465 | | | | | 1,370,000 | | | | | 1,340,689 | | | | | 29,311 | | | | | — | |
| Japanese Yen, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 05/31/22 | | Citibank, N.A. | | | | JPY | | | | | 293,864 | | | | | 2,846,550 | | | | | 2,266,841 | | | | | 579,709 | | | | | — | |
| Expiring 05/31/22 | | Deutsche Bank AG | | | | JPY | | | | | 349,393 | | | | | 3,323,000 | | | | | 2,695,186 | | | | | 627,814 | | | | | — | |
| Expiring 10/31/23 | | Bank of America, N.A. | | | | JPY | | | | | 1,325,555 | | | | | 12,988,000 | | | | | 10,707,690 | | | | | 2,280,310 | | | | | — | |
| Expiring 10/31/23 | | Bank of America, N.A. | | | | JPY | | | | | 1,168,753 | | | | | 11,585,000 | | | | | 9,441,056 | | | | | 2,143,944 | | | | | — | |
| Expiring 10/31/23 | | Citibank, N.A. | | | | JPY | | | | | 399,802 | | | | | 4,148,827 | | | | | 3,229,554 | | | | | 919,273 | | | | | — | |
| Expiring 10/31/23 | | Citibank, N.A. | | | | JPY | | | | | 46,713 | | | | | 447,401 | | | | | 377,344 | | | | | 70,057 | | | | | — | |
See Notes to Financial Statements.
PGIM Absolute Return Bond Fund 47
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Forward foreign currency exchange contracts outstanding at April 30, 2022 (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.): | | | | | | |
| Mexican Peso, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 06/15/22 | | JPMorgan Chase Bank, N.A. | | | | MXN | | | | | 17,678 | | | | $ | 829,000 | | | | $ | 858,303 | | | | $ | — | | | | $ | (29,303 | ) |
| Expiring 06/15/22 | | JPMorgan Chase Bank, N.A. | | | | MXN | | | | | 13,452 | | | | | 651,000 | | | | | 653,111 | | | | | — | | | | | (2,111 | ) |
| Expiring 06/15/22 | | UBS AG | | | | MXN | | | | | 20,253 | | | | | 952,000 | | | | | 983,294 | | | | | — | | | | | (31,294 | ) |
| Expiring 04/28/23 | | Morgan Stanley & Co. International PLC | | | | MXN | | | | | 303,737 | | | | | 13,188,761 | | | | | 13,876,779 | | | | | — | | | | | (688,018 | ) |
| New Taiwanese Dollar, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 06/15/22 | | Citibank, N.A. | | | | TWD | | | | | 34,675 | | | | | 1,189,000 | | | | | 1,181,969 | | | | | 7,031 | | | | | — | |
| Expiring 06/15/22 | | Goldman Sachs International | | | | TWD | | | | | 246,408 | | | | | 8,728,603 | | | | | 8,399,386 | | | | | 329,217 | | | | | — | |
| Expiring 06/15/22 | | HSBC Bank PLC | | | | TWD | | | | | 32,704 | | | | | 1,130,000 | | | | | 1,114,805 | | | | | 15,195 | | | | | — | |
| Expiring 06/15/22 | | HSBC Bank PLC | | | | TWD | | | | | 32,602 | | | | | 1,116,000 | | | | | 1,111,310 | | | | | 4,690 | | | | | — | |
| Expiring 06/15/22 | | Morgan Stanley & Co. International PLC | | | | TWD | | | | | 33,879 | | | | | 1,161,000 | | | | | 1,154,855 | | | | | 6,145 | | | | | — | |
| Philippine Peso, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 06/15/22 | | Bank of America, N.A. | | | | PHP | | | | | 83,967 | | | | | 1,605,000 | | | | | 1,593,122 | | | | | 11,878 | | | | | — | |
| Expiring 06/15/22 | | Citibank, N.A. | | | | PHP | | | | | 31,442 | | | | | 610,000 | | | | | 596,563 | | | | | 13,437 | | | | | — | |
| Expiring 06/15/22 | | JPMorgan Chase Bank, N.A. | | | | PHP | | | | | 32,059 | | | | | 614,000 | | | | | 608,269 | | | | | 5,731 | | | | | — | |
| Expiring 06/15/22 | | Morgan Stanley & Co. International PLC | | | | PHP | | | | | 75,158 | | | | | 1,418,609 | | | | | 1,425,985 | | | | | — | | | | | (7,376 | ) |
| Expiring 06/15/22 | | Standard Chartered Bank | | | | PHP | | | | | 76,856 | | | | | 1,485,000 | | | | | 1,458,206 | | | | | 26,794 | | | | | — | |
| Polish Zloty, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 07/19/22 | | Morgan Stanley & Co. International PLC | | | | PLN | | | | | 1,163 | | | | | 267,000 | | | | | 259,642 | | | | | 7,358 | | | | | — | |
| Singapore Dollar, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 06/15/22 | | Credit Suisse International | | | | SGD | | | | | 1,834 | | | | | 1,346,000 | | | | | 1,326,044 | | | | | 19,956 | | | | | — | |
| Expiring 06/15/22 | | Goldman Sachs International | | | | SGD | | | | | 2,865 | | | | | 2,073,000 | | | | | 2,071,312 | | | | | 1,688 | | | | | — | |
| Expiring 06/15/22 | | HSBC Bank PLC | | | | SGD | | | | | 2,726 | | | | | 1,965,000 | | | | | 1,971,186 | | | | | — | | | | | (6,186 | ) |
| Expiring 06/15/22 | | Morgan Stanley & Co. International PLC | | | | SGD | | | | | 8,609 | | | | | 6,326,812 | | | | | 6,224,934 | | | | | 101,878 | | | | | — | |
| South African Rand, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 05/31/22 | | JPMorgan Chase Bank, N.A. | | | | ZAR | | | | | 10,977 | | | | | 652,000 | | | | | 692,485 | | | | | — | | | | | (40,485 | ) |
| Expiring 05/31/22 | | JPMorgan Chase Bank, N.A. | | | | ZAR | | | | | 7,904 | | | | | 507,000 | | | | | 498,583 | | | | | 8,417 | | | | | — | |
| Expiring 06/15/22 | | Barclays Bank PLC | | | | ZAR | | | | | 58,149 | | | | | 3,833,043 | | | | | 3,662,616 | | | | | 170,427 | | | | | — | |
| Expiring 06/15/22 | | Barclays Bank PLC | | | | ZAR | | | | | 53,810 | | | | | 3,479,135 | | | | | 3,389,309 | | | | | 89,826 | | | | | — | |
See Notes to Financial Statements.
48
Forward foreign currency exchange contracts outstanding at April 30, 2022 (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.): | | | | | | |
| South African Rand (cont’d.), | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 06/15/22 | | Barclays Bank PLC | | | | ZAR | | | | | 35,778 | | | | $ | 2,313,263 | | | | $ | 2,253,538 | | | | $ | 59,725 | | | | $ | — | |
| Expiring 06/15/22 | | Citibank, N.A. | | | | ZAR | | | | | 58,149 | | | | | 3,821,807 | | | | | 3,662,615 | | | | | 159,192 | | | | | — | |
| South Korean Won, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 06/15/22 | | Citibank, N.A. | | | | KRW | | | | | 4,556,475 | | | | | 3,708,431 | | | | | 3,607,393 | | | | | 101,038 | | | | | — | |
| Expiring 06/15/22 | | HSBC Bank PLC | | | | KRW | | | | | 1,417,979 | | | | | 1,121,000 | | | | | 1,122,624 | | | | | — | | | | | (1,624 | ) |
| Expiring 06/15/22 | | Morgan Stanley & Co. International PLC | | | | KRW | | | | | 1,946,907 | | | | | 1,544,000 | | | | | 1,541,379 | | | | | 2,621 | | | | | — | |
| Expiring 06/15/22 | | Morgan Stanley & Co. International PLC | | | | KRW | | | | | 1,533,047 | | | | | 1,230,000 | | | | | 1,213,724 | | | | | 16,276 | | | | | — | |
| Expiring 06/15/22 | | Standard Chartered Bank | | | | KRW | | | | | 1,683,091 | | | | | 1,345,000 | | | | | 1,332,515 | | | | | 12,485 | | | | | — | |
| Expiring 06/15/22 | | Standard Chartered Bank | | | | KRW | | | | | 1,412,890 | | | | | 1,110,000 | | | | | 1,118,594 | | | | | — | | | | | (8,594 | ) |
| Swiss Franc, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 07/19/22 | | Barclays Bank PLC | | | | CHF | | | | | 606 | | | | | 652,123 | | | | | 625,719 | | | | | 26,404 | | | | | — | |
| Thai Baht, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 06/15/22 | | JPMorgan Chase Bank, N.A. | | | | THB | | | | | 344,815 | | | | | 10,403,845 | | | | | 10,075,291 | | | | | 328,554 | | | | | — | |
| Expiring 06/15/22 | | JPMorgan Chase Bank, N.A. | | | | THB | | | | | 22,243 | | | | | 651,000 | | | | | 649,939 | | | | | 1,061 | | | | | — | |
| Expiring 06/15/22 | | Morgan Stanley & Co. International PLC | | | | THB | | | | | 58,547 | | | | | 1,747,000 | | | | | 1,710,707 | | | | | 36,293 | | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | | | | | | | | | $ | 283,005,602 | | | | $ | 270,712,192 | | | | | 13,133,914 | | | | | (840,504 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | $ | 14,452,639 | | | | $ | (8,963,265 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cross currency exchange contracts outstanding at April 30, 2022:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Settlement | | Type | | Notional
Amount
(000) | | In Exchange
For (000) | | Unrealized
Appreciation | | Unrealized
Depreciation | | Counterparty |
| | | | | | | | | | | | | | | | | |
| | | | | | |
| OTC Cross Currency Exchange Contracts: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 05/31/22 | | | | Buy | | | | | AUD | | | | | 4,921 | | | | | JPY | | | | | 375,226 | | | | $ | 584,529 | | | | $ | — | | | Deutsche Bank AG |
| 05/31/22 | | | | Buy | | | | | JPY | | | | | 263,742 | | | | | AUD | | | | | 3,658 | | | | | — | | | | | (551,610 | ) | | Goldman Sachs International |
| 07/19/22 | | | | Buy | | | | | EUR | | | | | 584 | | | | | HUF | | | | | 220,209 | | | | | 11,335 | | | | | — | | | HSBC Bank PLC |
| 07/19/22 | | | | Buy | | | | | HUF | | | | | 236,120 | | | | | EUR | | | | | 616 | | | | | — | | | | | (1,352 | ) | | JPMorgan Chase Bank, N.A. |
See Notes to Financial Statements.
PGIM Absolute Return Bond Fund 49
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Cross currency exchange contracts outstanding at April 30, 2022 (continued):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Settlement | | Type | | Notional
Amount
(000) | | In Exchange
For (000) | | Unrealized
Appreciation | | Unrealized
Depreciation | | Counterparty |
| | | | | | | | | | | | | | | | | |
| | | | | |
| OTC Cross Currency Exchange Contracts (cont’d.): | | | | | | | | | | | | | | | | | | | | | | | |
| 10/31/23 | | | | Buy | | | | | AUD | | | | | 6,309 | | | | | JPY | | | | | 422,703 | | | | $ | 1,042,006 | | | | $ | — | | | Deutsche Bank AG |
| 10/31/23 | | | | Buy | | | | | JPY | | | | | 648,099 | | | | | AUD | | | | | 9,489 | | | | | — | | | | | (1,467,574 | ) | | Morgan Stanley & Co. International PLC |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 1,637,870 | | | | $ | (2,020,536 | ) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Credit default swap agreements outstanding at April 30, 2022:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Reference Entity/ Obligation | | Termination
Date | | Fixed
Rate | | Notional
Amount
(000)#(3) | | Implied
Credit
Spread at
April 30,
2022(4) | | Fair
Value | | Upfront
Premiums
Paid
(Received) | | Unrealized
Appreciation
(Depreciation) | | Counterparty |
| | | | | | | | | | | | | | | | | |
|
| OTC Credit Default Swap Agreements on asset-backed and/or mortgage-backed securities - SellProtection(2)^: |
| GS_21-PJ2A | | | | 05/14/22 | | | | | 0.500 | %(M) | | | | 6,762 | | | | | 0.500 | % | | | $ | 4,413 | | | | $ | (261 | ) | | | $ | 4,674 | | | Goldman Sachs International |
| GS_21-PJA†† | | | | 05/14/22 | | | | | 0.250 | %(M) | | | | 13,033 | | | | | * | | | | | 4,253 | | | | | (251 | ) | | | | 4,504 | | | Goldman Sachs International |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | $ | 8,666 | | | | $ | (512 | ) | | | $ | 9,178 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| †† | The value of the contract, GS_21-PJA, is derived from a pool of senior prime jumbomortgages. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 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 - BuyProtection(1): |
| Gazprom PAO | | | | 03/20/23 | | | | | 1.000 | %(Q) | | | | 1,630 | | | | $ | 803,679 | | | | $ | 817,885 | | | | $ | (14,206 | ) | | Barclays Bank PLC |
| Russian Federation | | | | 06/20/25 | | | | | 1.000 | %(Q) | | | | 8,000 | | | | | 4,883,808 | | | | | 4,966,000 | | | | | (82,192 | ) | | HSBC Bank PLC |
| United Mexican States | | | | 06/20/23 | | | | | 1.000 | %(Q) | | | | 1,400 | | | | | (9,210 | ) | | | | 2,025 | | | | | (11,235 | ) | | Citibank, N.A. |
| United Mexican States | | | | 06/20/23 | | | | | 1.000 | %(Q) | | | | 1,385 | | | | | (9,111 | ) | | | | 4,971 | | | | | (14,082 | ) | | Citibank, N.A. |
| United Mexican States | | | | 06/20/23 | | | | | 1.000 | %(Q) | | | | 460 | | | | | (3,026 | ) | | | | 1,852 | | | | | (4,878 | ) | | Citibank, N.A. |
| United Mexican States | | | | 06/20/23 | | | | | 1.000 | %(Q) | | | | 460 | | | | | (3,026 | ) | | | | 1,698 | | | | | (4,724 | ) | | Citibank, N.A. |
| United Mexican States | | | | 06/20/23 | | | | | 1.000 | %(Q) | | | | 455 | | | | | (2,993 | ) | | | | 612 | | | | | (3,605 | ) | | Citibank, N.A. |
| United Mexican States | | | | 06/20/23 | | | | | 1.000 | %(Q) | | | | 240 | | | | | (1,579 | ) | | | | 347 | | | | | (1,926 | ) | | Citibank, N.A. |
| United Mexican States | | | | 12/20/24 | | | | | 1.000 | %(Q) | | | | 1,000 | | | | | (5,051 | ) | | | | (6,285 | ) | | | | 1,234 | | | Barclays Bank PLC |
| United Mexican States | | | | 12/20/24 | | | | | 1.000 | %(Q) | | | | 440 | | | | | (2,210 | ) | | | | 1,637 | | | | | (3,847 | ) | | Citibank, N.A. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | | | | | | | | | | | | $ | 5,651,281 | | | | $ | 5,790,742 | | | | $ | (139,461 | ) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
See Notes to Financial Statements.
50
Credit default swap agreements outstanding at April 30, 2022 (continued):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Reference Entity/ Obligation | | Termination
Date | | Fixed
Rate | | Notional
Amount
(000)#(3) | | Implied
Credit
Spread at
April 30,
2022(4) | | Fair
Value | | Upfront
Premiums
Paid
(Received) | | Unrealized
Appreciation
(Depreciation) | | Counterparty |
| | | | | | | | | | | | | | | | | |
|
| OTC Credit Default Swap Agreements on corporate and/or sovereign issues - SellProtection(2): |
| AT&T, Inc. | | | | 06/20/22 | | | | | 1.000 | %(Q) | | | | 2,810 | | | | | 0.473 | % | | | $ | 5,411 | | | | $ | 3,004 | | | | $ | 2,407 | | | Goldman Sachs International |
| Bank of America Corp. | | | | 06/20/22 | | | | | 1.000 | %(Q) | | | | 4,690 | | | | | 0.407 | % | | | | 9,477 | | | | | 5,079 | | | | | 4,398 | | | Goldman Sachs International |
| Boeing Co. | | | | 06/20/24 | | | | | 1.000 | %(Q) | | | | 1,460 | | | | | 1.320 | % | | | | (7,969 | ) | | | | 4,322 | | | | | (12,291 | ) | | Goldman Sachs International |
| Calpine Corp. | | | | 06/20/22 | | | | | 5.000 | %(Q) | | | | 5,000 | | | | | 1.063 | % | | | | 57,501 | | | | | 28,806 | | | | | 28,695 | | | Credit Suisse International |
| Calpine Corp. | | | | 06/20/22 | | | | | 5.000 | %(Q) | | | | 3,000 | | | | | 1.063 | % | | | | 34,501 | | | | | 17,082 | | | | | 17,419 | | | Credit Suisse International |
| Casino Guichard Perrachon SA | | | | 06/20/24 | | | | | 5.000 | %(Q) | | | EUR | 1,490 | | | | | 14.235 | % | | | | (236,973 | ) | | | | 21,102 | | | | | (258,075 | ) | | Goldman Sachs International |
| Casino Guichard Perrachon SA | | | | 06/20/24 | | | | | 5.000 | %(Q) | | | EUR | 220 | | | | | 14.235 | % | | | | (34,989 | ) | | | | 3,230 | | | | | (38,219 | ) | | Goldman Sachs International |
| Citigroup, Inc. | | | | 06/20/22 | | | | | 1.000 | %(Q) | | | | 2,920 | | | | | 0.499 | % | | | | 5,514 | | | | | 3,122 | | | | | 2,392 | | | Goldman Sachs International |
| Delta Air Lines, Inc. | | | | 06/20/22 | | | | | 5.000 | %(Q) | | | | 680 | | | | | 1.272 | % | | | | 7,616 | | | | | 3,753 | | | | | 3,863 | | | Credit Suisse International |
| Devon Energy Corp. | | | | 06/20/22 | | | | | 1.000 | %(Q) | | | | 4,990 | | | | | 0.511 | % | | | | 9,201 | | | | | 3,876 | | | | | 5,325 | | | Barclays Bank PLC |
| Electricite de France SA | | | | 12/20/22 | | | | | 1.000 | %(Q) | | | EUR | 1,820 | | | | | 0.487 | % | | | | 8,659 | | | | | 11,011 | | | | | (2,352 | ) | | Goldman Sachs International |
| EQT Corp. | | | | 06/20/22 | | | | | 5.000 | %(Q) | | | | 770 | | | | | 0.941 | % | | | | 8,991 | | | | | 3,830 | | | | | 5,161 | | | Credit Suisse International |
| General Electric Co. | | | | 06/20/22 | | | | | 1.000 | %(Q) | | | | 2,780 | | | | | 0.266 | % | | | | 6,184 | | | | | 2,698 | | | | | 3,486 | | | Morgan Stanley & Co. International PLC |
| General Motors Co. | | | | 06/20/26 | | | | | 5.000 | %(Q) | | | | 2,230 | | | | | 1.803 | % | | | | 282,540 | | | | | 360,082 | | | | | (77,542 | ) | | Goldman Sachs International |
| Halliburton Co. | | | | 12/20/26 | | | | | 1.000 | %(Q) | | | | 910 | | | | | 0.871 | % | | | | 6,122 | | | | | 8,098 | | | | | (1,976 | ) | | Goldman Sachs International |
| Host Hotels & Resorts LP | | | | 06/20/24 | | | | | 1.000 | %(Q) | | | | 500 | | | | | 0.691 | % | | | | 3,816 | | | | | 4,149 | | | | | (333 | ) | | Goldman Sachs International |
| Naturgy Energy Group SA | | | | 06/20/22 | | | | | 1.000 | %(Q) | | | EUR | 4,950 | | | | | 0.504 | % | | | | 9,838 | | | | | 7,073 | | | | | 2,765 | | | Goldman Sachs International |
| Newell Brands, Inc. | | | | 06/20/22 | | | | | 1.000 | %(Q) | | | | 4,460 | | | | | 0.322 | % | | | | 9,435 | | | | | 4,410 | | | | | 5,025 | | | Barclays Bank PLC |
| Petroleos Mexicanos | | | | 06/20/23 | | | | | 1.000 | %(Q) | | | | 9,450 | | | | | 2.404 | % | | | | (138,348 | ) | | | | (323,146 | ) | | | | 184,798 | | | BNP Paribas S.A. |
See Notes to Financial Statements.
PGIM Absolute Return Bond Fund 51
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Credit default swap agreements outstanding at April 30, 2022 (continued):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Reference Entity/ Obligation | | Termination
Date | | Fixed
Rate | | Notional
Amount
(000)#(3) | | Implied
Credit
Spread at
April 30,
2022(4) | | Fair
Value | | Upfront
Premiums
Paid
(Received) | | Unrealized
Appreciation
(Depreciation) | | Counterparty |
| | | | | | | | | | | | | | | | | |
|
| OTC Credit Default Swap Agreements on corporate and/or sovereign issues - SellProtection(2)(cont’d.): |
| Petroleos Mexicanos | | | | 06/20/23 | | | | | 1.000 | %(Q) | | | | 1,165 | | | | | 2.404 | % | | | $ | (17,056 | ) | | | $ | (16,992 | ) | | | $ | (64 | ) | | Citibank, N.A. |
| Petroleos Mexicanos | | | | 06/20/23 | | | | | 1.000 | %(Q) | | | | 1,155 | | | | | 2.404 | % | | | | (16,910 | ) | | | | (20,222 | ) | | | | 3,312 | | | Citibank, N.A. |
| Petroleos Mexicanos | | | | 06/20/23 | | | | | 1.000 | %(Q) | | | | 385 | | | | | 2.404 | % | | | | (5,637 | ) | | | | (6,908 | ) | | | | 1,271 | | | Citibank, N.A. |
| Petroleos Mexicanos | | | | 06/20/23 | | | | | 1.000 | %(Q) | | | | 385 | | | | | 2.404 | % | | | | (5,636 | ) | | | | (6,782 | ) | | | | 1,146 | | | Citibank, N.A. |
| Petroleos Mexicanos | | | | 06/20/23 | | | | | 1.000 | %(Q) | | | | 380 | | | | | 2.404 | % | | | | (5,564 | ) | | | | (5,569 | ) | | | | 5 | | | Citibank, N.A. |
| Petroleos Mexicanos | | | | 06/20/23 | | | | | 1.000 | %(Q) | | | | 195 | | | | | 2.404 | % | | | | (2,855 | ) | | | | (2,843 | ) | | | | (12 | ) | | Citibank, N.A. |
| Petroleos Mexicanos | | | | 12/20/24 | | | | | 1.000 | %(Q) | | | | 1,000 | | | | | 3.304 | % | | | | (55,570 | ) | | | | (27,578 | ) | | | | (27,992 | ) | | Barclays Bank PLC |
| Petroleos Mexicanos | | | | 12/20/24 | | | | | 1.000 | %(Q) | | | | 440 | | | | | 3.304 | % | | | | (24,463 | ) | | | | (21,926 | ) | | | | (2,537 | ) | | Citibank, N.A. |
| Pioneer Natural Resources Co. | | | | 06/20/22 | | | | | 1.000 | %(Q) | | | | 3,750 | | | | | 0.221 | % | | | | 8,584 | | | | | 4,113 | | | | | 4,471 | | | Goldman Sachs International |
| Republic of Ukraine | | | | 12/20/26 | | | | | 1.000 | %(Q) | | | | 1,800 | | | | | 79.727 | % | | | | (1,227,414 | ) | | | | (469,970 | ) | | | | (757,444 | ) | | Barclays Bank PLC |
| Russian Federation | | | | 03/20/25 | | | | | 1.000 | %(Q) | | | | 8,000 | | | | | 69.464 | % | | | | (4,839,988 | ) | | | | (4,965,596 | ) | | | | 125,608 | | | HSBC Bank PLC |
| Simon Property Group LP | | | | 06/20/26 | | | | | 1.000 | %(Q) | | | | 1,980 | | | | | 0.894 | % | | | | 10,452 | | | | | 19,043 | | | | | (8,591 | ) | | Goldman Sachs International |
| Verizon Communications, Inc. | | | | 06/20/26 | | | | | 1.000 | %(Q) | | | | 680 | | | | | 0.886 | % | | | | 3,799 | | | | | 11,811 | | | | | (8,012 | ) | | Goldman Sachs International |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | $ | (6,131,731 | ) | | | $ | (5,337,838 | ) | | | $ | (793,893 | ) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Reference Entity/ Obligation | | Termination
Date | | Fixed
Rate | | Notional
Amount
(000)#(3) | | Value at
Trade Date | | Value at
April 30,
2022 | | Unrealized
Appreciation
(Depreciation) |
| | | | | | | | | | | | | |
|
| Centrally Cleared Credit Default Swap Agreement on credit indices - BuyProtection(1): | |
| CDX.NA.IG.38.V1 | | | | 06/20/27 | | | | | 1.000 | %(Q) | | | | 278,250 | | | | $ | (3,882,221 | ) | | | $ | (2,440,369 | ) | | | $ | 1,441,852 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
See Notes to Financial Statements.
52
Credit default swap agreements outstanding at April 30, 2022 (continued):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Reference Entity/ Obligation | | Termination
Date | | Fixed
Rate | | Notional
Amount
(000)#(3) | | Implied Credit
Spread at
April 30,
2022(4) | | Value at
Trade Date | | Value at
April 30,
2022 | | Unrealized
Appreciation
(Depreciation) |
| | | | | | | | | | | | | | | |
|
| Centrally Cleared Credit Default Swap Agreement on credit indices - SellProtection(2): | |
| CDX.NA.HY.38.V1 | | | | 06/20/27 | | | | | 5.000 | %(Q) | | | | 3,540 | | | | | 4.634 | % | | | $ | 149,529 | | | | $ | 73,498 | | | | $ | (76,031 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| 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 credit indices - Buy Protection(1): |
| CMBX.NA.13.AAA | | 12/16/72 | | 0.500%(M) | | | | 25,000 | | | | $ | 215,586 | | | | $ | 690,693 | | | | $ | (475,107 | ) | | Morgan Stanley & Co. International PLC |
| CMBX.NA.13.AAA | | 12/16/72 | | 0.500%(M) | | | | 22,500 | | | | | 194,027 | | | | | 231,968 | | | | | (37,941 | ) | | Citigroup Global Markets, Inc. |
| CMBX.NA.13.AAA | | 12/16/72 | | 0.500%(M) | | | | 10,000 | | | | | 86,234 | | | | | 198,235 | | | | | (112,001 | ) | | Goldman Sachs International |
| CMBX.NA.13.AAA | | 12/16/72 | | 0.500%(M) | | | | 7,000 | | | | | 59,488 | | | | | 33,107 | | | | | 26,381 | | | Morgan Stanley & Co. International PLC |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | | | | | | $ | 555,335 | | | | $ | 1,154,003 | | | | $ | (598,668 | ) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
The Fund entered into credit default swaps (“CDS”) to provide a measure of protection against defaults or to take an activelong 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 theprotection 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.
| (1) | If the Fund is a buyer of protection, it pays the fixed rate. When a credit event occurs, as defined under the terms ofthat 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 referencedindex 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 termsof 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 |
See Notes to Financial Statements.
PGIM Absolute Return Bond Fund 53
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
| | 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 underlyingsecurities comprising the referenced index. |
| (3) | Notional amount represents the maximum potential amount the Fund could be required to pay as a seller of credit protectionor 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 swapagreements 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 creditspread 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 adeterioration 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 creditindices 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 creditderivative 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 referencedentity’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 April 30, 2022:
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Notional Amount (000)# | | Termination
Date | | Fixed
Rate | | Floating Rate | | Value at
Trade Date | | Value at
April 30,
2022 | | Unrealized
Appreciation
(Depreciation) |
| | | | | | | | | | | | | |
| |
| Centrally Cleared Interest Rate Swap Agreements: | | | | | |
| GBP 6,090 | | | | 05/08/26 | | | | | 1.000 | %(A) | | 1 Day SONIA(1)(A) | | | $ | (84,366 | ) | | | $ | 279,121 | | | | $ | 363,487 | |
| GBP 3,280 | | | | 05/08/27 | | | | | 1.050 | %(A) | | 1 Day SONIA(1)(A) | | | | 169,315 | | | | | 190,439 | | | | | 21,124 | |
| GBP 1,340 | | | | 05/08/31 | | | | | 1.150 | %(A) | | 1 Day SONIA(1)(A) | | | | (30,882 | ) | | | | 102,009 | | | | | 132,891 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | | | | | | | | | | | | | | $ | 54,067 | | | | $ | 571,569 | | | | $ | 517,502 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (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 April 30, 2022:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 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 Agreement: | |
| Total Return Benchmark Bond Index(T) | | 1 Day USOIS -60bps(Q) | | |
| Goldman
Sachs
International |
| | | | 7/14/22 | | | | | (3,679 | ) | | | $ | 135,948 | | | | $ | — | | | | $ | 135,948 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
See Notes to Financial Statements.
54
| (1) | On a long total return swap, the Fund receives payments for any positive return on the reference entity (makes paymentsfor 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 | | $7,480,724 | | $(5,874,329) | | $574,288 | | $(1,961,184) |
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 derivativesare listed by broker as follows:
| | | | | | | | | | | | |
| Broker | | Cash and/or Foreign Currency | | Securities Market Value |
| | | | | | |
| Citigroup Global Markets, Inc. | | | | $2,663,000 | | | | | | $10,179,061 | | |
| | | | | | | | | | | | |
Fair Value Measurements:
Variousinputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.
Level1—unadjusted quoted prices generally in active markets for identical securities.
Level 2—quoted prices for similar securities, interestrates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs forsecurities valued in accordance with Board approved fair valuation procedures.
The following is a summary of the inputs used as of April 30, 2022 in valuingsuch portfolio securities:
| | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | |
| | | |
| Investments in Securities | | | | | | | | | | | | |
| Assets | | | | | | | | | | | | |
| Long-Term Investments | | | | | | | | | | | | |
| Asset-Backed Securities | | | | | | | | | | | | |
| Automobiles | | $ | — | | | $ | 1,860,853 | | | $ | — | |
| Collateralized Loan Obligations | | | — | | | | 194,830,638 | | | | — | |
| Consumer Loans | | | — | | | | 4,964,428 | | | | — | |
| Home Equity Loans | | | — | | | | 11,889,239 | | | | — | |
| Other | | | — | | | | 3,160,882 | | | | — | |
| Residential Mortgage-Backed Securities | | | — | | | | 15,655,159 | | | | 6,952 | |
| Student Loans | | | — | | | | 16,549,650 | | | | — | |
| Bank Loans | | | — | | | | 9,628,988 | | | | 10,237,092 | |
| Commercial Mortgage-Backed Securities | | | — | | | | 64,665,405 | | | | — | |
| Convertible Bond | | | — | | | | 32,115 | | | | — | |
| Corporate Bonds | | | — | | | | 265,692,688 | | | | 711,015 | |
See Notes to Financial Statements.
PGIM Absolute Return Bond Fund 55
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
| | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | |
| Investments in Securities (continued) | | | | | | | | | | | | |
| Assets (continued) | | | | | | | | | | | | |
| Long-Term Investments (continued) | | | | | | | | | | | | |
| Municipal Bonds | | $ | — | | | $ | 20,213,846 | | | $ | — | |
| Residential Mortgage-Backed Securities | | | — | | | | 29,616,551 | | | | — | |
| Sovereign Bonds | | | — | | | | 28,974,205 | | | | — | |
| U.S. Treasury Obligations | | | — | | | | 188,780,022 | | | | — | |
| Common Stocks | | | 11,761,047 | | | | 756,536 | | | | — | |
| Rights | | | — | | | | — | | | | 4,644 | |
| Warrants | | | — | | | | — | | | | 5,598 | |
| | | |
| Short-Term Investments | | | | | | | | | | | | |
| Affiliated Mutual Funds | | $ | 70,453,977 | | | $ | — | | | $ | — | |
| Unaffiliated Fund | | | 140,656,880 | | | | — | | | | — | |
| Options Purchased | | | — | | | | 7,790,671 | | | | — | |
| | | | | | | | | | | | |
| | | |
| Total | | $ | 222,871,904 | | | $ | 865,061,876 | | | $ | 10,965,301 | |
| | | | | | | | | | | | |
| | | |
| Liabilities | | | | | | | | | | | | |
| Options Written | | $ | — | | | $ | (5,600,000 | ) | | $ | (45,380 | ) |
| | | | | | | | | | | | |
| | | |
| Other Financial Instruments* | | | | | | | | | | | | |
| Assets | | | | | | | | | | | | |
| Futures Contracts | | $ | 18,542,002 | | | $ | — | | | $ | — | |
| OTC Forward Foreign Currency Exchange Contracts | | | — | | | | 14,452,639 | | | | — | |
| OTC Cross Currency Exchange Contracts | | | — | | | | 1,637,870 | | | | — | |
| Centrally Cleared Credit Default Swap Agreement | | | — | | | | 1,441,852 | | | | — | |
| OTC Credit Default Swap Agreements | | | — | | | | 6,730,463 | | | | 8,666 | |
| Centrally Cleared Interest Rate Swap Agreements | | | — | | | | 517,502 | | | | — | |
| OTC Total Return Swap Agreement | | | — | | | | 135,948 | | | | — | |
| | | | | | | | | | | | |
| | | |
| Total | | $ | 18,542,002 | | | $ | 24,916,274 | | | $ | 8,666 | |
| | | | | | | | | | | | |
| | | |
| Liabilities | | | | | | | | | | | | |
| OTC Forward Foreign Currency Exchange Contracts | | $ | — | | | $ | (8,963,265 | ) | | $ | — | |
| OTC Cross Currency Exchange Contracts | | | — | | | | (2,020,536 | ) | | | — | |
| Centrally Cleared Credit Default Swap Agreement | | | — | | | | (76,031 | ) | | | — | |
| OTC Credit Default Swap Agreements | | | — | | | | (6,655,578 | ) | | | — | |
| | | | | | | | | | | | |
| | | |
| Total | | $ | — | | | $ | (17,715,410 | ) | | $ | — | |
| | | | | | | | | | | | |
| * | Other financial instruments are derivative instruments not reflected in the Schedule of Investments, such as futures,forwards and centrally cleared swap contracts, which are recorded at the unrealized appreciation (depreciation) on the instrument, and OTC swap contracts which are recorded at fair value. |
See Notes to Financial Statements.
56
The following is a reconciliation of assets in which unobservable inputs (Level 3) were used indetermining fair value:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Asset-Backed Securities-
Residential Mortgage-Backed
Securities | | Bank Loans | | Corporate Bonds | | Common Stocks | | Rights |
| | | | | |
| Balance as of 10/31/21 | | | $ | — | | | | $ | 7,103,458 | | | | $ | — | | | | $ | — | | | | $ | — | |
| Realized gain (loss) | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | |
| Change in unrealized appreciation | | | | | | | | | | | | | | | | | | | | | | | | | |
| (depreciation) | | | | 6,951 | | | | | (784,582 | ) | | | | (320,571 | ) | | | | — | | | | | 4,644 | |
| Purchases/Exchanges/Issuances | | | | 1 | | | | | 3,914,251 | | | | | 1,041,676 | | | | | — | | | | | — | |
| Sales/Paydowns | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | |
| Accrued discount/premium | | | | — | | | | | 3,965 | | | | | (10,090 | ) | | | | — | | | | | — | |
| Transfers into Level 3* | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | |
| Transfers out of Level 3* | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| Balance as of 04/30/22 | | | $ | 6,952 | | | | $ | 10,237,092 | | | | $ | 711,015 | | | | $ | — | | | | $ | 4,644 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| Change in unrealized appreciation (depreciation) relating to securities still held at reporting periodend | | | $ | 6,951 | | | | $ | (784,582 | ) | | | $ | (320,571 | ) | | | $ | — | | | | $ | 4,644 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Warrants | | Options Written | | OTC Credit Default
Swap Agreements |
| | | |
| Balance as of 10/31/21 | | | $ | 5,598 | | | | $ | (60,383 | ) | | | $ | 3,996 | |
| Realized gain (loss) | | | | — | | | | | — | | | | | 1,598 | |
| Change in unrealized appreciation (depreciation) | | | | — | | | | | 15,003 | | | | | 8,666 | |
| Purchases/Exchanges/Issuances | | | | — | | | | | — | | | | | — | |
| Sales/Paydowns | | | | — | | | | | — | | | | | (5,594 | ) |
| Accrued discount/premium | | | | — | | | | | — | | | | | — | |
| Transfers into Level 3* | | | | — | | | | | — | | | | | — | |
| Transfers out of Level 3* | | | | — | | | | | — | | | | | — | |
| | | | | | | | | | | | | | | |
| | | |
| Balance as of 04/30/22 | | | $ | 5,598 | | | | $ | (45,380 | ) | | | $ | 8,666 | |
| | | | | | | | | | | | | | | |
| | | |
| Change in unrealized appreciation (depreciation) relating to securities still held at reporting periodend | | | $ | — | | | | $ | 15,003 | | | | $ | 8,666 | |
| | | | | | | | | | | | | | | |
| * | It is the Fund’s policy to recognize transfers in and transfers out at the fair value as of the beginning of period.Securities transferred levels due to a change in observable and/or unobservable inputs. |
See Notes to Financial Statements.
PGIM Absolute Return Bond Fund 57
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Level 3 securities as presented in the table above are being fair valued using pricing methodologies approved bythe Board, which contain unobservable inputs as follows:
| | | | | | | | | | | |
| Level 3 Securities** | | Fair Value as of
April 30, 2022 | | Valuation Approach | | Valuation Methodology | | Unobservable Inputs |
| Asset-Backed Securities- Residential Mortgage- Backed Securities | | | $ | 6,952 | | | Market | | Pro Rata Distribution | | Estimated Distribution |
| Bank Loans | | | | 2,592,368 | | | Market | | Comparable Bond | | Discounted Yield Curve Spread |
| Corporate Bonds | | | | 2 | | | Market | | Worthless | | Estimated Future Distributions |
| Rights | | | | 4,644 | | | Market | | Enterprise Value | | Estimated Weighted Value |
| | | | | | | | | | | |
| | | | |
| | | $ | 2,603,966 | | | | | | | |
| | | | | | | | | | | |
** The table does not include Level 3 securities and/or derivatives that are valued by independent pricing vendors or brokers. As ofApril 30, 2022, the aggregate value of these securities was $8,324,621. The unobservable inputs for these investments were not developed by the Fund and are not readily available.
Industry Classification:
The industry classification of investmentsand liabilities in excess of other assets shown as a percentage of net assets as of April 30, 2022 were as follows:
| | | | |
| Collateralized Loan Obligations | | | 17.9 | % |
| U.S. Treasury Obligations | | | 17.3 | |
| Unaffiliated Fund | | | 12.9 | |
| Affiliated Mutual Funds (1.9% represents investments purchased with collateral from securities onloan) | | | 6.5 | |
| Commercial Mortgage-Backed Securities | | | 5.9 | |
| Banks | | | 4.5 | |
| Residential Mortgage-Backed Securities | | | 4.1 | |
| Sovereign Bonds | | | 2.7 | |
| Telecommunications | | | 1.9 | |
| Municipal Bonds | | | 1.9 | |
| Oil & Gas | | | 1.7 | |
| Retail | | | 1.5 | |
| Student Loans | | | 1.5 | |
| Pharmaceuticals | | | 1.3 | |
| Pipelines | | | 1.3 | |
| Electric | | | 1.3 | |
| Chemicals | | | 1.2 | |
| Home Equity Loans | | | 1.1 | |
| | | | |
| Foods | | | 1.1 | % |
| Media | | | 0.9 | |
| Aerospace & Defense | | | 0.9 | |
| Insurance | | | 0.9 | |
| Oil, Gas & Consumable Fuels | | | 0.8 | |
| Options Purchased | | | 0.7 | |
| Commercial Services | | | 0.7 | |
| Gas | | | 0.6 | |
| Home Builders | | | 0.6 | |
| Airlines | | | 0.5 | |
| Consumer Loans | | | 0.4 | |
| Auto Parts & Equipment | | | 0.4 | |
| Real Estate | | | 0.4 | |
| Mining | | | 0.4 | |
| Entertainment | | | 0.4 | |
| Diversified Financial Services | | | 0.4 | |
| Engineering & Construction | | | 0.4 | |
| Healthcare-Services | | | 0.3 | |
| Packaging & Containers | | | 0.3 | |
| Gas Utilities | | | 0.3 | |
See Notes to Financial Statements.
58
Industry Classification (continued):
| | | | |
| Internet | | | 0.3 | % |
| Investment Companies | | | 0.3 | |
| Other | | | 0.3 | |
| Agriculture | | | 0.3 | |
| Lodging | | | 0.3 | |
| Healthcare-Products | | | 0.3 | |
| Auto Manufacturers | | | 0.2 | |
| Automobiles | | | 0.2 | |
| Computers | | | 0.1 | |
| Forest Products & Paper | | | 0.1 | |
| Building Materials | | | 0.1 | |
| Metal Fabricate/Hardware | | | 0.1 | |
| Real Estate Investment Trusts (REITs) | | | 0.1 | |
| Energy-Alternate Sources | | | 0.1 | |
| Wireless Telecommunication Services | | | 0.1 | |
| Beverages | | | 0.0 | * |
| | | | |
| Savings & Loans | | | 0.0 | *% |
| Transportation | | | 0.0 | * |
| Housewares | | | 0.0 | * |
| Advertising | | | 0.0 | * |
| Oil & Gas Services | | | 0.0 | * |
| Electronics | | | 0.0 | * |
| Diversified Telecommunication Services | | | 0.0 | * |
| | | | |
| |
| | | 100.8 | |
| Options Written | | | (0.5 | ) |
| Liabilities in excess of other assets | | | (0.3 | ) |
| | | | |
| |
| | | 100.0 | % |
| | | | |
Effects of Derivative Instruments on theFinancial Statements and Primary Underlying Risk Exposure:
The Fund invested in derivative instruments during the reporting period. The primary types ofrisk associated with these derivative instruments are credit contracts risk, foreign exchange contracts risk and interest rate contracts risk. See the Notes to Financial Statements for additional detail regarding these derivative instruments andtheir risks. The effect of such derivative instruments on the Fund’s financial position and financial performance as reflected in the Statement of Assets and Liabilities and Statement of Operations is presented in the summary below.
Fair values of derivative instruments as of April 30, 2022 as presented in the Statement of Assets and Liabilities:
| | | | | | | | | | | | |
| | | Asset Derivatives | | | Liability Derivatives | |
| Derivatives not accounted for as hedging instruments, carried at fairvalue | | 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 | | $ | 1,441,852* | | | Due from/to broker-variation margin swaps | | $ | 76,031 | * |
| Credit contracts | | Premiums paid for OTC swap agreements | | | 7,480,724 | | | Premiums received for OTC swap agreements | | | 5,874,329 | |
| Credit contracts | | Unaffiliated investments | | | 4,323,215 | | | Options written outstanding, at value | | | 2,177,924 | |
| Credit contracts | | Unrealized appreciation on OTC swap agreements | | | 438,340 | | | Unrealized depreciation on OTC swap agreements | | | 1,961,184 | |
| Foreign exchange contracts | | Unaffiliated investments | | | 3,467,456 | | | Options written outstanding, at value | | | 3,467,456 | |
| Foreign exchange contracts | | Unrealized appreciation on OTC cross currency exchange contracts | | | 1,637,870 | | | Unrealized depreciation on OTC cross currency exchange contracts | | | 2,020,536 | |
See Notes to Financial Statements.
PGIM Absolute Return Bond Fund 59
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
| | | | | | | | | | | | |
| | | Asset Derivatives | | | Liability Derivatives | |
| Derivatives not accounted for as hedging instruments, carried at fairvalue | | Statement of Assets and Liabilities Location | | Fair
Value | | | Statement of Assets and Liabilities Location | | Fair
Value | |
| Foreign exchange contracts | | Unrealized appreciation on OTC forward foreign currency exchange contracts | | $ | 14,452,639 | | | Unrealized depreciation on OTC forward foreign currency exchange contracts | | $ | 8,963,265 | |
| Interest rate contracts | | Due from/to broker-variation margin futures | | | 18,542,002 | * | | — | | | — | |
| Interest rate contracts | | Due from/to broker-variation margin swaps | | | 517,502 | * | | — | | | — | |
| Interest rate contracts | | Unrealized appreciation on OTC swap agreements | | | 135,948 | | | — | | | — | |
| | | | | | | | | | | | |
| | | | |
| | | | $ | 52,437,548 | | | | | $ | 24,540,725 | |
| | | | | | | | | | | | |
| * | Includes cumulative appreciation (depreciation) as reported in the schedule of open futures and centrally cleared swapcontracts. Only unsettled variation margin receivable (payable) is reported within the Statement of Assets and Liabilities. |
The effects ofderivative instruments on the Statement of Operations for the six months ended April 30, 2022 are as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Amount of Realized Gain (Loss) on DerivativesRecognized in Income |
| | | | | |
| Derivatives not accounted for as hedging instruments, carried at fair value | | Options
Purchased(1) | | Options
Written | | Futures | | Forward
& Cross
Currency
Exchange
Contracts | | Swaps |
| | | | | |
| Credit contracts | | | $ | (1,790,296 | ) | | | $ | 1,929,523 | | | | $ | — | | | | $ | — | | | | $ | 2,053,239 | |
| Foreign exchange contracts | | | | (7,944,644 | ) | | | | 8,951,146 | | | | | — | | | | | 9,651,864 | | | | | — | |
| Interest rate contracts | | | | — | | | | | — | | | | | 30,107,143 | | | | | — | | | | | (19,277,857 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| Total | | | $ | (9,734,940 | ) | | | $ | 10,880,669 | | | | $ | 30,107,143 | | | | $ | 9,651,864 | | | | $ | (17,224,618 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Included in net realized gain (loss) on investment transactions in the Statement of Operations. |
| | | | | | | | | | | | | | | | | | |
| Change in Unrealized Appreciation (Depreciation) onDerivatives Recognized in Income | |
| | | | | |
| Derivatives not accounted for as hedginginstruments, carried at fair value | | Options
Purchased(2) | | Options
Written | | | Futures | | | Forward
& Cross
Currency
Exchange
Contracts | | | Swaps | |
| | | | | |
| Credit contracts | | $ 1,476,719 | | $ | 537,123 | | | $ | — | | | $ | — | | | $ | 747,923 | |
See Notes to Financial Statements.
60
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Change in Unrealized Appreciation (Depreciation) onDerivatives Recognized in Income |
| | | | | |
| Derivatives not accounted for as hedginginstruments, carried at fair value | | Options
Purchased(2) | | Options
Written | | Futures | | Forward
& Cross
Currency
Exchange
Contracts | | Swaps |
| | | | | | | | | | | |
| | | | | |
| Foreign exchange contracts | | | $ | 10,353,850 | | | | $ | (11,360,353 | ) | | | $ | — | | | | $ | 3,274,938 | | | | $ | — | |
| Interest rate contracts | | | | — | | | | | — | | | | | 12,069,667 | | | | | — | | | | | 17,239,929 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| Total | | | $ | 11,830,569 | | | | $ | (10,823,230 | ) | | | $ | 12,069,667 | | | | $ | 3,274,938 | | | | $ | 17,987,852 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| (2) | Included in net change in unrealized appreciation (depreciation) on investments in the Statement of Operations. |
For the six months ended April 30, 2022, the Fund’s average volume of derivative activities is as follows:
| | | | |
| Derivative Contract Type | | Average Volume of Derivative Activities* |
| Options Purchased (1) | | | $ 6,116,174 | |
| Options Written (2) | | | 1,343,931,810 | |
| Futures Contracts - Long Positions (2) | | | 11,988,865 | |
| Futures Contracts - Short Positions (2) | | | 849,462,321 | |
| Forward Foreign Currency Exchange Contracts - Purchased (3) | | | 160,983,406 | |
| Forward Foreign Currency Exchange Contracts - Sold (3) | | | 309,467,941 | |
| Cross Currency Exchange Contracts (4) | | | 18,733,313 | |
| Interest Rate Swap Agreements (2) | | | 110,986,954 | |
| Credit Default Swap Agreements - Buy Protection (2) | | | 186,713,333 | |
| Credit Default Swap Agreements - Sell Protection (2) | | | 92,311,957 | |
| Total Return Swap Agreements (2) | | | 1,226,201 | |
| Inflation Swap Agreements (2) | | | 11,720,000 | |
| * | Average volume is based on average quarter end balances as noted for the six months ended April 30, 2022. |
| (2) | Notional Amount in USD. |
| (3) | Value at Settlement Date. |
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 currentrequirements 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 wherethe legal right to set-off exists is presented in the summary below.
Offsetting of financial instrument/transactionassets and liabilities:
See Notes to Financial Statements.
PGIM Absolute Return Bond Fund 61
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
| | | | | | |
| Description | | GrossMarket Value of Recognized
Assets/(Liabilities) | | Collateral
Pledged/(Received)(2) | | Net
Amount |
| | | |
| Securities on Loan | | $19,209,902 | | $(19,209,902) | | $— |
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 |
| Bank of America, N.A. | | | $ | 4,784,937 | | | | $ | (3,607,995 | ) | | | $ | 1,176,942 | | | | $ | (969,541 | ) | | | $ | 207,401 | |
| Barclays Bank PLC | | | | 5,787,944 | | | | | (3,304,197 | ) | | | | 2,483,747 | | | | | (2,483,747 | ) | | | | — | |
| BNP Paribas S.A. | | | | 1,488,615 | | | | | (539,233 | ) | | | | 949,382 | | | | | (949,382 | ) | | | | — | |
| Citibank, N.A. | | | | 2,982,075 | | | | | (897,782 | ) | | | | 2,084,293 | | | | | (1,970,000 | ) | | | | 114,293 | |
| Citigroup Global Markets, Inc. | | | | 231,968 | | | | | (37,941 | ) | | | | 194,027 | | | | | — | | | | | 194,027 | |
| Credit Suisse International | | | | 128,565 | | | | | — | | | | | 128,565 | | | | | (128,565 | ) | | | | — | |
| Deutsche Bank AG | | | | 3,194,815 | | | | | (2,217,329 | ) | | | | 977,486 | | | | | (977,486 | ) | | | | — | |
| Goldman Sachs | | | | | | | | | | | | | | | | | | | | | | | | | |
| International | | | | 1,693,137 | | | | | (3,239,672 | ) | | | | (1,546,535 | ) | | | | 1,546,535 | | | | | — | |
| HSBC Bank PLC | | | | 5,173,056 | | | | | (5,478,747 | ) | | | | (305,691 | ) | | | | 177,509 | | | | | (128,182 | ) |
| JPMorgan Chase | | | | | | | | | | | | | | | | | | | | | | | | | |
| Bank, N.A. | | | | 1,221,664 | | | | | (228,233 | ) | | | | 993,431 | | | | | (930,000 | ) | | | | 63,431 | |
| Morgan Stanley & Co. International PLC | | | | 2,941,167 | | | | | (4,694,889 | ) | | | | (1,753,722 | ) | | | | 1,753,722 | | | | | — | |
| Standard Chartered Bank | | | | 1,120,282 | | | | | (42,648 | ) | | | | 1,077,634 | | | | | (1,077,634 | ) | | | | — | |
| The Toronto-Dominion Bank | | | | 932,416 | | | | | — | | | | | 932,416 | | | | | (932,416 | ) | | | | — | |
| UBS AG | | | | 255,551 | | | | | (176,028 | ) | | | | 79,523 | | | | | — | | | | | 79,523 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | $ | 31,936,192 | | | | $ | (24,464,694 | ) | | | $ | 7,471,498 | | | | $ | (6,941,005 | ) | | | $ | 530,493 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Includes unrealized appreciation/(depreciation) on swaps and forwards, premiums paid/(received) on swap agreements andmarket 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 theFund’s OTC derivative exposure by counterparty. |
See Notes to Financial Statements.
62
Statement of Assets and Liabilities (unaudited)
as ofApril 30, 2022
| | | | |
| Assets | | | | |
| |
| Investments at value, including securities on loan of $19,209,902: | | | | |
| Unaffiliated investments (cost $1,076,060,490) | | $ | 1,028,445,104 | |
| Affiliated investments (cost $70,444,055) | | | 70,453,977 | |
| Foreign currency, at value (cost $2,558,493) | | | 2,479,193 | |
| Receivable for Fund shares sold | | | 18,103,756 | |
| Unrealized appreciation on OTC forward foreign currency exchange contracts | | | 14,452,639 | |
| Premiums paid for OTC swap agreements | | | 7,480,724 | |
| Dividends and interest receivable | | | 7,247,149 | |
| Deposit with broker for centrally cleared/exchange-traded derivatives | | | 2,663,000 | |
| Unrealized appreciation on OTC cross currency exchange contracts | | | 1,637,870 | |
| Due from broker—variation margin futures | | | 1,187,331 | |
| Unrealized appreciation on OTC swap agreements | | | 574,288 | |
| Due from broker—variation margin swaps | | | 423,317 | |
| Prepaid expenses and other assets | | | 115,223 | |
| | | | |
| |
| Total Assets | | | 1,155,263,571 | |
| | | | |
| |
| Liabilities | | | | |
| |
| Payable to broker for collateral for securities on loan | | | 20,314,699 | |
| Payable for Fund shares purchased | | | 10,927,720 | |
| Unrealized depreciation on OTC forward foreign currency exchange contracts | | | 8,963,265 | |
| Payable for investments purchased | | | 8,511,549 | |
| Premiums received for OTC swap agreements | | | 5,874,329 | |
| Options written outstanding, at value (premiums received $3,334,908) | | | 5,645,380 | |
| Unrealized depreciation on OTC cross currency exchange contracts | | | 2,020,536 | |
| Unrealized depreciation on OTC swap agreements | | | 1,961,184 | |
| Management fee payable | | | 505,757 | |
| Accrued expenses and other liabilities | | | 234,923 | |
| Dividends payable | | | 206,178 | |
| Distribution fee payable | | | 48,354 | |
| Affiliated transfer agent fee payable | | | 4,221 | |
| | | | |
| |
| Total Liabilities | | | 65,218,095 | |
| | | | |
| |
| Net Assets | | $ | 1,090,045,476 | |
| | | | |
| |
| | | | | |
| |
| Net assets were comprised of: | | | | |
| Shares of beneficial interest, at par | | $ | 120,676 | |
| Paid-in capital in excess of par | | | 1,360,998,771 | |
| Total distributable earnings (loss) | | | (271,073,971 | ) |
| | | | |
| |
| Net assets, April 30, 2022 | | $ | 1,090,045,476 | |
| | | | |
See Notes to Financial Statements.
PGIM Absolute Return Bond Fund 63
Statement of Assets and Liabilities (unaudited)
as ofApril 30, 2022
| | | | |
| Class A | | | | |
| |
| Net asset value and redemption price per share, ($90,186,882 ÷ 10,022,634 shares of beneficial interest issued and outstanding) | | $ | 9.00 | |
| Maximum sales charge (3.25% of offering price) | | | 0.30 | |
| | | | |
| |
| Maximum offering price to public | | $ | 9.30 | |
| | | | |
| |
| Class C | | | | |
| |
| Net asset value, offering price and redemption price per share, ($36,255,092 ÷ 4,016,621 shares of beneficial interest issued and outstanding) | | $ | 9.03 | |
| | | | |
| |
| Class Z | | | | |
| |
| Net asset value, offering price and redemption price per share, ($904,305,988 ÷ 100,043,640 shares of beneficial interest issued and outstanding) | | $ | 9.04 | |
| | | | |
| |
| Class R6 | | | | |
| |
| Net asset value, offering price and redemption price per share, ($59,297,514 ÷ 6,593,212 shares of beneficial interest issued and outstanding) | | $ | 8.99 | |
| | | | |
See Notes to Financial Statements.
64
Statement of Operations (unaudited)
SixMonths Ended April 30, 2022
| | | | |
| Net Investment Income (Loss) | | | | |
| |
| Income | | | | |
| Interest income | | $ | 14,542,673 | |
| Unaffiliated dividend income | | | 265,064 | |
| Affiliated dividend income | | | 47,736 | |
| Income from securities lending, net (including affiliated income of $9,810) | | | 21,405 | |
| | | | |
| |
| Total income | | | 14,876,878 | |
| | | | |
| |
| Expenses | | | | |
| Management fee | | | 2,906,465 | |
| Distribution fee(a) | | | 319,420 | |
| Transfer agent’s fees and expenses (including affiliated expense of $9,504)(a) | | | 429,869 | |
| Custodian and accounting fees | | | 75,759 | |
| Audit fee | | | 33,720 | |
| Registration fees(a) | | | 28,130 | |
| Shareholders’ reports | | | 25,616 | |
| Legal fees and expenses | | | 11,648 | |
| Trustees’ fees | | | 9,587 | |
| Miscellaneous | | | 15,685 | |
| | | | |
| |
| Total expenses | | | 3,855,899 | |
| |
| | | | |
| |
| Net investment income (loss) | | | 11,020,979 | |
| | | | |
| |
| Realized And Unrealized Gain (Loss) On Investment And ForeignCurrency Transactions | | | | |
| |
| Net realized gain (loss) on: | | | | |
| Investment transactions (including affiliated of $(7,316)) | | | (7,537,647 | ) |
| Futures transactions | | | 30,107,143 | |
| Forward and cross currency contract transactions | | | 9,651,864 | |
| Options written transactions | | | 10,880,669 | |
| Swap agreement transactions | | | (17,224,618 | ) |
| Foreign currency transactions | | | (130,198 | ) |
| | | | |
| |
| | | 25,747,213 | |
| | | | |
| Net change in unrealized appreciation (depreciation) on: | | | | |
| Investments (including affiliated of $(372)) | | | (73,459,515 | ) |
| Futures | | | 12,069,667 | |
| Forward and cross currency contracts | | | 3,274,938 | |
| Options written | | | (10,823,230 | ) |
| Swap agreements | | | 17,987,852 | |
| Foreign currencies | | | 1,416,252 | |
| Unfunded loan commitments | | | (3,262 | ) |
| | | | |
| |
| | | (49,537,298 | ) |
| | | | |
| |
| Net gain (loss) on investment and foreign currency transactions | | | (23,790,085 | ) |
| | | | |
| |
| Net Increase (Decrease) In Net Assets Resulting From Operations | | $ | (12,769,106 | ) |
| | | | |
See Notes to Financial Statements.
PGIM Absolute Return Bond Fund 65
Statement of Operations (unaudited)
SixMonths Ended April 30, 2022
| (a) | Class specific expenses and waivers were as follows: |
| | | | | | | | | | | | | | | | | | | | |
| | | Class A | | Class C | | Class Z | | Class R6 |
| | | | |
| Distribution fee | | | | 126,824 | | | | | 192,596 | | | | | — | | | | | — | |
| Transfer agent’s fees and expenses | | | | 42,475 | | | | | 19,345 | | | | | 366,892 | | | | | 1,157 | |
| Registration fees | | | | 6,789 | | | | | 4,194 | | | | | 13,509 | | | | | 3,638 | |
See Notes to Financial Statements.
66
Statements of Changes in Net Assets (unaudited)
| | | | | | | | | | |
| | |
| | | Six Months Ended
April 30, 2022 | | Year Ended
October 31, 2021 |
| | |
| Increase (Decrease) in Net Assets | | | | | | | | | | |
| | |
| Operations | | | | | | | | | | |
| Net investment income (loss) | | | $ | 11,020,979 | | | | $ | 27,877,591 | |
| Net realized gain (loss) on investment and foreign currency transactions | | | | 25,747,213 | | | | | 33,546,778 | |
| Net change in unrealized appreciation (depreciation) on investments and foreign currencies | | | | (49,537,298 | ) | | | | 12,215,766 | |
| | | | | | | | | | |
| | |
| Net increase (decrease) in net assets resulting from operations | | | | (12,769,106 | ) | | | | 73,640,135 | |
| | | | | | | | | | |
| | |
| Dividends and Distributions | | | | | | | | | | |
| Distributions from distributable earnings | | | | | | | | | | |
| Class A | | | | (1,122,144 | ) | | | | (2,322,399 | ) |
| Class C | | | | (276,514 | ) | | | | (886,038 | ) |
| Class Z | | | | (9,605,432 | ) | | | | (21,959,534 | ) |
| Class R6 | | | | (740,668 | ) | | | | (2,674,791 | ) |
| | | | | | | | | | |
| | |
| | | | (11,744,758 | ) | | | | (27,842,762 | ) |
| | | | | | | | | | |
| Tax return of capital distributions | | | | | | | | | | |
| Class A | | | | — | | | | | (104,437 | ) |
| Class C | | | | — | | | | | (39,845 | ) |
| Class Z | | | | — | | | | | (987,511 | ) |
| Class R6 | | | | — | | | | | (120,284 | ) |
| | | | | | | | | | |
| | |
| | | | — | | | | | (1,252,077 | ) |
| | | | | | | | | | |
| Fund share transactions (Net of share conversions) | | | | | | | | | | |
| Net proceeds from shares sold | | | | 368,505,109 | | | | | 358,440,154 | |
| Net asset value of shares issued in reinvestment of dividends and distributions | | | | 10,339,225 | | | | | 25,054,049 | |
| Cost of shares purchased | | | | (243,741,004 | ) | | | | (807,564,899 | ) |
| | | | | | | | | | |
| | |
| Net increase (decrease) in net assets from Fund share transactions | | | | 135,103,330 | | | | | (424,070,696 | ) |
| | | | | | | | | | |
| | |
| Total increase (decrease) | | | | 110,589,466 | | | | | (379,525,400 | ) |
| | |
| Net Assets: | | | | | | | | | | |
| | |
| Beginning of period | | | | 979,456,010 | | | | | 1,358,981,410 | |
| | | | | | | | | | |
| | |
| End of period | | | $ | 1,090,045,476 | | | | $ | 979,456,010 | |
| | | | | | | | | | |
See Notes to Financial Statements.
PGIM Absolute Return Bond Fund 67
Financial Highlights (unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | |
| | | Six Months
Ended
April 30, | | | Year Ended October 31, | |
| | | | | | | |
| | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| | | | | | | |
| Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | | $9.22 | | | | $8.94 | | | | $9.73 | | | | $9.82 | | | | $9.93 | | | | $9.59 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | | 0.09 | | | | 0.21 | | | | 0.30 | | | | 0.31 | | | | 0.27 | | | | 0.23 | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | (0.21 | ) | | | 0.30 | | | | (0.49 | ) | | | 0.13 | | | | (0.05 | ) | | | 0.33 | |
| Total from investment operations | | | (0.12 | ) | | | 0.51 | | | | (0.19 | ) | | | 0.44 | | | | 0.22 | | | | 0.56 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends from net investment income | | | (0.10 | ) | | | (0.22 | ) | | | (0.26 | ) | | | (0.53 | ) | | | (0.33 | ) | | | (0.22 | ) |
| Tax return of capital distributions | | | - | | | | (0.01 | ) | | | (0.04 | ) | | | - | | | | - | | | | - | |
| Distributions from net realized gains | | | - | | | | - | | | | (0.30 | ) | | | - | | | | - | | | | - | |
| Total dividends and distributions | | | (0.10 | ) | | | (0.23 | ) | | | (0.60 | ) | | | (0.53 | ) | | | (0.33 | ) | | | (0.22 | ) |
| Net asset value, end of period | | | $9.00 | | | | $9.22 | | | | $8.94 | | | | $9.73 | | | | $9.82 | | | | $9.93 | |
| Total Return(b): | | | (1.31 | )% | | | 5.71 | % | | | (1.96 | )% | | | 4.71 | % | | | 2.21 | % | | | 5.95 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Ratios/Supplemental Data: | |
| Net assets, end of period (000) | | | $90,187 | | | | $109,630 | | | | $93,597 | | | | $142,879 | | | | $148,609 | | | | $119,969 | |
| Average net assets (000) | | | $102,300 | | | | $98,531 | | | | $114,656 | | | | $147,612 | | | | $142,613 | | | | $145,290 | |
| Ratios to average net assets(c)(d): | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses after waivers and/or expense reimbursement | | | 0.97 | %(e) | | | 0.97 | % | | | 0.97 | % | | | 1.02 | % | | | 1.03 | % | | | 1.15 | % |
| Expenses before waivers and/or expense reimbursement | | | 0.97 | %(e) | | | 0.97 | % | | | 0.97 | % | | | 1.02 | % | | | 1.04 | % | | | 1.22 | % |
| Net investment income (loss) | | | 2.05 | %(e) | | | 2.32 | % | | | 3.27 | % | | | 3.24 | % | | | 2.72 | % | | | 2.31 | % |
| Portfolio turnover rate(f) | | | 14 | % | | | 48 | % | | | 20 | % | | | 50 | % | | | 52 | % | | | 72 | % |
| (a) | Calculated based on average shares outstanding during the period. |
| (b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share onthe first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are notannualized. |
| (c) | Does not include expenses of the underlying funds in which the Fund invests. |
| (d) | Effective August 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees,which are charged to their respective share class. |
| (f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard totransactions 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.
68
| | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | |
| | | Six Months
Ended
April 30, | | | Year Ended October 31, | |
| | | | | | | |
| | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| | | | | | | |
| Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | | $9.25 | | | | $8.97 | | | | $9.76 | | | | $9.85 | | | | $9.96 | | | | $9.62 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | | 0.06 | | | | 0.15 | | | | 0.23 | | | | 0.24 | | | | 0.19 | | | | 0.15 | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | (0.22 | ) | | | 0.29 | | | | (0.48 | ) | | | 0.13 | | | | (0.05 | ) | | | 0.34 | |
| Total from investment operations | | | (0.16 | ) | | | 0.44 | | | | (0.25 | ) | | | 0.37 | | | | 0.14 | | | | 0.49 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends from net investment income | | | (0.06 | ) | | | (0.15 | ) | | | (0.20 | ) | | | (0.46 | ) | | | (0.25 | ) | | | (0.15 | ) |
| Tax return of capital distributions | | | - | | | | (0.01 | ) | | | (0.04 | ) | | | - | | | | - | | | | - | |
| Distributions from net realized gains | | | - | | | | - | | | | (0.30 | ) | | | - | | | | - | | | | - | |
| Total dividends and distributions | | | (0.06 | ) | | | (0.16 | ) | | | (0.54 | ) | | | (0.46 | ) | | | (0.25 | ) | | | (0.15 | ) |
| Net asset value, end of period | | | $9.03 | | | | $9.25 | | | | $8.97 | | | | $9.76 | | | | $9.85 | | | | $9.96 | |
| Total Return(b): | | | (1.68 | )% | | | 5.03 | % | | | (2.70 | )% | | | 3.80 | % | | | 1.43 | % | | | 5.16 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Ratios/Supplemental Data: | |
| Net assets, end of period (000) | | | $36,255 | | | | $42,635 | | | | $66,396 | | | | $103,133 | | | | $106,734 | | | | $98,789 | |
| Average net assets (000) | | | $38,838 | | | | $52,974 | | | | $86,229 | | | | $107,605 | | | | $102,866 | | | | $106,174 | |
| Ratios to average net assets(c)(d): | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses after waivers and/or expense reimbursement | | | 1.75 | %(e) | | | 1.73 | % | | | 1.73 | % | | | 1.78 | % | | | 1.79 | % | | | 1.90 | % |
| Expenses before waivers and/or expense reimbursement | | | 1.75 | %(e) | | | 1.73 | % | | | 1.73 | % | | | 1.78 | % | | | 1.80 | % | | | 1.97 | % |
| Net investment income (loss) | | | 1.27 | %(e) | | | 1.64 | % | | | 2.51 | % | | | 2.46 | % | | | 1.93 | % | | | 1.58 | % |
| Portfolio turnover rate(f) | | | 14 | % | | | 48 | % | | | 20 | % | | | 50 | % | | | 52 | % | | | 72 | % |
| (a) | Calculated based on average shares outstanding during the period. |
| (b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share onthe first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are notannualized. |
| (c) | Does not include expenses of the underlying funds in which the Fund invests. |
| (d) | Effective August 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees,which are charged to their respective share class. |
| (f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard totransactions 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 Absolute Return Bond Fund 69
Financial Highlights (unaudited) (continued)
| | | | | | | | | | | | | | | | | | | | | | | | |
Class Z Shares | |
| | | Six Months
Ended
April 30, | | | Year Ended October 31, | |
| | | | | | | |
| | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| | | | | | | |
| Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | | $9.26 | | | | $8.98 | | | | $9.77 | | | | $9.86 | | | | $9.97 | | | | $9.64 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | | 0.10 | | | | 0.24 | | | | 0.32 | | | | 0.34 | | | | 0.30 | | | | 0.25 | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | (0.21 | ) | | | 0.29 | | | | (0.48 | ) | | | 0.13 | | | | (0.06 | ) | | | 0.33 | |
| Total from investment operations | | | (0.11 | ) | | | 0.53 | | | | (0.16 | ) | | | 0.47 | | | | 0.24 | | | | 0.58 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends from net investment income | | | (0.11 | ) | | | (0.24 | ) | | | (0.29 | ) | | | (0.56 | ) | | | (0.35 | ) | | | (0.25 | ) |
| Tax return of capital distributions | | | - | | | | (0.01 | ) | | | (0.04 | ) | | | - | | | | - | | | | - | |
| Distributions from net realized gains | | | - | | | | - | | | | (0.30 | ) | | | - | | | | - | | | | - | |
| Total dividends and distributions | | | (0.11 | ) | | | (0.25 | ) | | | (0.63 | ) | | | (0.56 | ) | | | (0.35 | ) | | | (0.25 | ) |
| Net asset value, end of period | | | $9.04 | | | | $9.26 | | | | $8.98 | | | | $9.77 | | | | $9.86 | | | | $9.97 | |
| Total Return(b): | | | (1.18 | )% | | | 5.96 | % | | | (1.70 | )% | | | 5.00 | % | | | 2.48 | % | | | 6.08 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Ratios/Supplemental Data: | |
| Net assets, end of period (000) | | | $904,306 | | | | $767,056 | | | | $1,071,124 | | | | $2,040,949 | | | | $2,159,518 | | | | $1,277,401 | |
| Average net assets (000) | | | $793,255 | | | | $833,908 | | | | $1,499,872 | | | | $2,155,699 | | | | $1,679,461 | | | | $1,121,943 | |
| Ratios to average net assets(c)(d): | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses after waivers and/or expense reimbursement | | | 0.72 | %(e) | | | 0.73 | % | | | 0.73 | % | | | 0.73 | % | | | 0.75 | % | | | 0.90 | % |
| Expenses before waivers and/or expense reimbursement | | | 0.72 | %(e) | | | 0.73 | % | | | 0.74 | % | | | 0.79 | % | | | 0.81 | % | | | 0.96 | % |
| Net investment income (loss) | | | 2.30 | %(e) | | | 2.64 | % | | | 3.53 | % | | | 3.51 | % | | | 3.01 | % | | | 2.59 | % |
| Portfolio turnover rate(f) | | | 14 | % | | | 48 | % | | | 20 | % | | | 50 | % | | | 52 | % | | | 72 | % |
| (a) | Calculated based on average shares outstanding during the period. |
| (b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each periodreported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
| (c) | Does not include expenses of the underlying funds in which the Fund invests. |
| (d) | Effective August 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees,which are charged to their respective share class. |
| (f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard totransactions 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.
70
| | | | | | | | | | | | | | | | | | | | | | | | |
Class R6 Shares | |
| | | Six Months
Ended
April 30, | | | Year Ended October 31, | |
| | | | | | | |
| | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| | | | | | | |
| Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | | $9.21 | | | | $8.93 | | | | $9.72 | | | | $9.82 | | | | $9.94 | | | | $9.61 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | | 0.11 | | | | 0.26 | | | | 0.32 | | | | 0.35 | | | | 0.29 | | | | 0.26 | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | (0.22 | ) | | | 0.28 | | | | (0.48 | ) | | | 0.12 | | | | (0.05 | ) | | | 0.32 | |
| Total from investment operations | | | (0.11 | ) | | | 0.54 | | | | (0.16 | ) | | | 0.47 | | | | 0.24 | | | | 0.58 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends from net investment income | | | (0.11 | ) | | | (0.25 | ) | | | (0.29 | ) | | | (0.57 | ) | | | (0.36 | ) | | | (0.25 | ) |
| Tax return of capital distributions | | | - | | | | (0.01 | ) | | | (0.04 | ) | | | - | | | | - | | | | - | |
| Distributions from net realized gains | | | - | | | | - | | | | (0.30 | ) | | | - | | | | - | | | | - | |
| Total dividends and distributions | | | (0.11 | ) | | | (0.26 | ) | | | (0.63 | ) | | | (0.57 | ) | | | (0.36 | ) | | | (0.25 | ) |
| Net asset value, end of period | | | $8.99 | | | | $9.21 | | | | $8.93 | | | | $9.72 | | | | $9.82 | | | | $9.94 | |
| Total Return(b): | | | (1.15 | )% | | | 6.07 | % | | | (1.66 | )% | | | 4.94 | % | | | 2.42 | % | | | 6.15 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Ratios/Supplemental Data: | |
| Net assets, end of period (000) | | | $59,298 | | | | $60,135 | | | | $127,864 | | | | $82,538 | | | | $203,372 | | | | $346,253 | |
| Average net assets (000) | | | $59,014 | | | | $97,518 | | | | $109,540 | | | | $88,570 | | | | $329,668 | | | | $270,229 | |
| Ratios to average net assets(c)(d): | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses after waivers and/or expense reimbursement | | | 0.64 | %(e) | | | 0.64 | % | | | 0.65 | % | | | 0.70 | % | | | 0.74 | % | | | 0.90 | % |
| Expenses before waivers and/or expense reimbursement | | | 0.64 | %(e) | | | 0.64 | % | | | 0.65 | % | | | 0.71 | % | | | 0.75 | % | | | 0.90 | % |
| Net investment income (loss) | | | 2.38 | %(e) | | | 2.79 | % | | | 3.54 | % | | | 3.59 | % | | | 2.95 | % | | | 2.64 | % |
| Portfolio turnover rate(f) | | | 14 | % | | | 48 | % | | | 20 | % | | | 50 | % | | | 52 | % | | | 72 | % |
| (a) | Calculated based on average shares outstanding during the period. |
| (b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each periodreported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
| (c) | Does not include expenses of the underlying funds in which the Fund invests. |
| (d) | Effective August 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees,which are charged to their respective share class. |
| (f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard totransactions 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 Absolute Return Bond Fund 71
Notes to Financial Statements (unaudited)
Prudential Investment Portfolios 9 (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 Delaware Statutory Trust. These financial statements relate only to the PGIM Absolute Return Bond 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 seekpositive returns over the long term, regardless of market conditions.
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 Easterntime) 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 quotationsare readily available. The RIC’s Board of Trustees (the “Board”) has adopted valuation procedures for security valuation under which fair valuation responsibilities have been delegated to PGIM Investments LLC (“PGIMInvestments” or the “Manager”). Pursuant to the Board’s delegation, the Manager has established a Valuation Committee responsible for supervising the fair valuation of portfolio securities and other assets and liabilities. Thevaluation 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 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. A record of the Valuation Committee’s actions is subject to theBoard’s review at its first quarterly meeting following the quarter in which such actions take place.
For the fiscal reportingperiod-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 weekendsand holidays). Because such foreign
72
securities 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 Fundshares.
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 and derivative instruments, if applicable, that are traded on a national securities exchange are valued at the lastsale 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 orNASDAQ official closing price, they are classified as Level 1 in the fair value hierarchy. In the event that no sale or official closing price on valuation date exists, these securities are generally valued at the mean between the last reportedbid 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.
Investments in open-end funds (other than exchange-traded funds) are valued at their net asset values as of the close of the NYSEon 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 valuedusing 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 comparableinstruments 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 utilizingtransaction 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.
Bank loans are generally valued at prices provided by approved independent pricing vendors. The pricing vendors utilize broker/dealer quotations and provide prices basedon the average of such quotations. Bank loans valued using such vendor prices are generally classified as Level 2 in the fair value hierarchy. Bank loans valued based on a single broker quote or at the original transaction price in excess offive business days are classified as Level 3 in the fair value hierarchy.
PGIM Absolute Return BondFund 73
Notes to Financial Statements (unaudited) (continued)
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 quotedprices 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 ofvaluing 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 flowsand 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 derivativeprice 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 approachby 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 pricing methodologies approved by the Board. In the eventthat 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 3security’s fair value measurement.
When determining the fair value of securities, some of the factors influencing the valuation include: the nature of anyrestrictions 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 thecapitalization of the issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; any available analyst media or other reports or information deemed reliable by the Manager regarding the issuer orthe 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 theirnet asset values.
Foreign Currency Translation: The books and records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translatedinto U.S. dollars on the following basis:
(i) market value of investment securities, other assets and liabilities — at the exchange rate as of the valuationdate;
74
(ii) purchases and sales of investment securities, income and expenses — at the rates of exchange prevailing on therespective 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 theend 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, holdingperiod 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 ofOperations. 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 areincluded in net realized gains (losses) on foreign currency transactions.
Additionally, net realized gains (losses) on foreign currency transactions represent netforeign 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, dividendsand 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 (otherthan investments) at period end exchange rates.
Forward and Cross Currency Contracts: A forward currency contract is a commitment to purchase or sell aforeign 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 portfolioholdings or on specific receivables and payables denominated in a foreign currency and to gain exposure to certain currencies. The contracts are valued daily at current forward exchange rates and any unrealized gain (loss) is included in netunrealized 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 theircontracts. 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 thenet 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 ofanother foreign currency.
PGIM Absolute Return BondFund 75
Notes to Financial Statements (unaudited) (continued)
Options: The Fund purchased and/or wrote options in order to hedge against adverse market movements orfluctuations 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 alsouse 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 Fundpurchases 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 isadjusted 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 asan 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 transactionis 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 writtentransactions.
The Fund, as writer of an option, may have no control over whether the underlying securities or financial instruments may be sold (called) orpurchased (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 potentialinability 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-tradedoptions and guarantees the options contracts against default.
When the Fund writes an option on a swap, an amount equal to any premium received by the Fund isrecorded 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) andreceive 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. Premiumsreceived 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 beobligated to be party to a swap agreement if an option on a swap is exercised.
Financial Futures Contracts: A financial futures contract is an agreement topurchase (long) or sell (short) an agreed amount of securities at a set price for delivery on a future date.
76
Upon entering into a financial futures contract, the Fund is required to pledge to the broker an amount of cash and/or otherassets 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 dailyfluctuations 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 presentedin the Statement of Operations as net realized gain (loss) on futures transactions.
The Fund invested in financial futures contracts in order to hedge its existingportfolio 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 thefinancial 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 contractsare 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 returngenerated 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”) orthrough 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 clearedswaps pay or receive an amount known as “variation margin”, based on daily changes in the valuation of the swap contract. For OTC-traded, upfront premiums paid and received are shown as swap premiumspaid 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 ofInvestments.
Interest Rate Swaps: Interest rate swaps represent an agreement between counterparties to exchange cash flows based on the difference betweentwo 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 itsability 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 thediscounted net present value of the cash flows to be received from the counterparty over the contract’s remaining life.
Inflation Swaps: The Fundentered into inflation swap agreements to protect against fluctuations in inflation rates. Inflation swaps are characterized by one party paying a fixed
PGIM Absolute Return BondFund 77
Notes to Financial Statements (unaudited) (continued)
rate in exchange for a floating rate that is derived from an inflation index, such as the Consumer Price Index or UK Retail Price Index. Inflation swaps subject the Fund to interest rate risk.
Credit Default Swaps (“CDS”): CDS involve one party (the protection buyer) making a stream of payments to another party (the protection seller) inexchange 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 ofprotection 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 whichrepresents 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 theprotection 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 theswap, 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.
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 thenotional 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 settlementof 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 ofprotection 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
78
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 includeupfront 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 soundnessand 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 totalreturn 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 subjectto 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 fromcounterparty credit risk is the change in the value of the security, in the Fund’s favor, from the point of entering into the contract.
Bank Loans: TheFund invested in bank loans. Bank loans include fixed and floating rate loans that are privately negotiated between a corporate borrower and one or more financial institutions, including, but not limited to, term loans, revolvers, and otherinstruments issued in the bank loan market. The Fund acquires 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). Undera bank loan assignment, the Fund generally will succeed to all the rights and obligations of an assigning lending institution and becomes a lender under the loan agreement with the relevant borrower in connection with that loan. Under a bank loanparticipation, 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 it isentitled 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 it has purchasedthe 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 theborrower 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 suchas 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 similarlystructured 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.
PGIM Absolute Return BondFund 79
Notes to Financial Statements (unaudited) (continued)
Stripped mortgage-backed securities are usually structured with two classes that receive different proportions of theinterest (“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 ofan 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 parvalue of the securities.
Master Netting Arrangements: The RIC, on behalf of the Fund, is subject to various Master Agreements, or netting arrangements, withselect 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 amountspayable 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 suchmitigating 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 determinableamounts, 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 early termination. With respect to certain counterparties, in accordance with the terms of the Master Agreements, collateral posted to the Fund is heldin 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 segregatedby 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 applicablecounterparty. 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 acertain 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 toterminate 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
80
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, tovarying 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 onthe 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 theterms 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, givethe 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 marketand 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.
Warrants and Rights: The Fund held warrants and rights acquired either through a direct purchase or pursuant to corporate actions. Warrants and rights entitle theholder 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 warrants and rights are held as long positions by the Fund until exercised,sold or expired. Warrants and 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 thatpay-in-kind (PIK) the interest due on such debt instruments. The PIK interest, computed at the contractual rate specified, is added to the existing principal balance ofthe debt when issued bonds have 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.
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 ofthe 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 theloaned securities. In the event of significant appreciation in value of 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 loanedsecurities. 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
PGIM Absolute Return BondFund 81
Notes to Financial Statements (unaudited) (continued)
return to the Fund securities identical to the loaned securities. The remaining maturities of the securities lending transactions are considered overnight and continuous. Should the borrower ofthe 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 anyrebate 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 paymentsare 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 anyunrealized 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 thecollateral invested upon liquidation of the collateral. Net earnings from securities lending are disclosed in the Statement of Operations.
SecuritiesTransactions 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 recordedon 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. 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 specificexpenses 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 andexpenses, registration fees and fee waivers and/or expense reimbursements, as applicable.
Taxes: It is the Fund’s policy to continue to meet therequirements 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.
82
Dividends and Distributions: Dividends and distributions to shareholders, which are determined in accordance withfederal 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 distributableearnings (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 impactthe 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 | | Monthly |
| 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 gainsduring a fiscal year. |
Estimates: The preparation of financial statements requires management to make estimates and assumptions that affectthe reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
The RIC, on behalf of the Fund, has a management agreement with the Manager. Pursuant to this agreement, the Manager has responsibility for all investment advisoryservices and supervises the subadviser’s performance of such services.
The Manager has entered into a subadvisory agreement with PGIM, Inc., which providessubadvisory services to the Fund through its business unit PGIM Fixed Income, and PGIM Limited (collectively the “subadviser”). The Manager pays for the services of the subadviser.
Fees payable under the management agreement are computed daily and paid monthly. For the reporting period ended April 30, 2022, the contractual and effectivemanagement fee rates were as follows:
| | |
| | |
| Contractual Management Rate | | Effective Management Fee, before any waivers and/or expense reimbursements |
| 0.590% of average daily net assets up to $2.5 billion; | | 0.59% |
| 0.565% of average daily net assets from $2.5 billion to $5 billion; | | |
| 0.540% of average daily net assetsover $5 billion. | | |
The Manager has contractually agreed, through February 28, 2023, to limit total annual operating expenses after fee waivers and/orexpense reimbursements. This contractual waiver excludes interest, brokerage, taxes (such as income and foreign withholdings taxes, stamp duty and deferred tax expenses), acquired fund fees and expenses, extraordinary expenses, and certain otherFund expenses such as dividend and interest expense and broker charges on short sales.
PGIM Absolute Return BondFund 83
Notes to Financial Statements (unaudited) (continued)
Where applicable, the Manager agrees to waive management fees or shared operating expenses on any share class to thesame 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/orreimbursed by the Manager 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 recoupmentfor that fiscal year. The expense limitations attributable to each class are as follows:
| | |
| Class | | Expense
Limitations |
| A | | —% |
| C | | — |
| Z | | 0.73 |
| R6 | | 0.70 |
The RIC, on behalf of the Fund, has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), whichacts as the distributor of the Class A, Class C, Class Z and Class R6 shares of the Fund. The Fund compensates PIMS for distributing and servicing the Fund’s Class A and Class C shares, pursuant to the plans ofdistribution (the “Distribution Plans”), regardless of expenses actually incurred by PIMS.
Pursuant to the Distribution Plans, the Fund compensates PIMSfor distribution related activities at an annual rate based on average daily net assets per class. The distribution fees are accrued daily and payable monthly.
TheFund’s annual gross and net distribution rate, where applicable, are as follows:
| | | | |
| Class | | Gross Distribution Fee | | Net Distribution Fee |
| A | | 0.25% | | 0.25% |
| C | | 1.00 | | 1.00 |
| Z | | N/A | | N/A |
| R6 | | N/A | | N/A |
For the reporting period ended April 30, 2022, 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 turnpaid commissions to salespersons and incurred other distribution costs. The sales charges are as follows where applicable:
| | | | | | | | |
| Class | | FESL | | | CDSC | |
| A | | $ | 19,961 | | | $ | 79,248 | |
| C | | | — | | | | 765 | |
84
PGIM Investments, PGIM, Inc., PGIM Limited and PIMS 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’stransfer agent. Transfer agent’s fees and expenses in the Statement of Operations include certain out-of-pocket expenses paid tonon-affiliates, where applicable.
The Fund may invest its overnight sweep cash in the PGIM Core Ultra Short Bond Fund (the“Core Fund”), and its securities lending cash collateral in the PGIM Institutional Money Market Fund (the “Money Market Fund”), each a fund of Prudential Investment Portfolios 2, registered under the 1940 Act and managed by PGIMInvestments. PGIM Investments and/or its affiliates are paid fees or reimbursed for providing their services to the Core Fund and the Money Market Fund. In addition to the realized and unrealized gains on investments in the Core Fund and MoneyMarket Fund, earnings from such investments are disclosed on the Statement of Operations as “Affiliated dividend income” and “Income from securities lending, net”, respectively. Effective January 2022, the Fund changed itsovernight cash sweep vehicle from the Core Fund to an unaffiliated money market fund.
The Fund may enter into certain securities purchase or sale transactions underBoard 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 transactionsamong 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 reportingperiod ended April 30, 2022, no 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 periodended April 30, 2022, were as follows:
| | |
| Cost of Purchases | | Proceeds from Sales |
$150,413,429 | | $85,240,375 |
A summary of the cost of purchases and proceeds from sales of shares of affiliated mutual funds for the reporting period endedApril 30, 2022, is presented as follows:
PGIM Absolute Return BondFund 85
Notes to Financial Statements (unaudited) (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| Value,
Beginning of Period | | Cost of
Purchases | | Proceeds
from Sales | | Change in
Unrealized
Gain
(Loss) | | Realized
Gain
(Loss) | | Value,
End of
Period | | Shares,
End
of
Period | | Income |
| | | |
| Short-Term Investments - Affiliated MutualFunds: | | | | | | | | | | | | | | | | |
| | | |
| PGIM Core Short-Term BondFund(1)(wc) | | | | | | | | | | | | | | | | |
$ — | | | $ | 50,123,031 | | | | $ | — | | | | | $ — | | | | $ | — | | | | $ | 50,123,031 | | | | | 5,495,946 | | | | $ | 16,934 | |
| | | |
| PGIM Core Ultra Short BondFund(1)(wc) | | | | | | | | | | | | | | | | |
| 127,420,190 | | | | 54,384,327 | | | | | 181,804,517 | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 30,802 | |
| | | |
| PGIM Institutional Money Market Fund(1)(b)(wc) | | | | | | | | | | | | | | | | |
| 14,750,279 | | | | 152,960,751 | | | | | 147,372,396 | | | | | (372) | | | | | (7,316 | ) | | | | 20,330,946 | | | | | 20,347,224 | | | | | 9,810 | (2) |
$142,170,469 | | | $ | 257,468,109 | | | | $ | 329,176,913 | | | | | $(372) | | | | $ | (7,316 | ) | | | $ | 70,453,977 | | | | | | | | | $ | 57,546 | |
| (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 ofOperations. |
| (b) | Represents security, or portion thereof, purchased with cash collateral received for securities on loan and includesdividend reinvestment. |
| (wc) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Short-Term Bond Fund, PGIM CoreUltra Short Bond Fund and PGIM Institutional Money Market Fund, if applicable. |
The United States federal income tax basis of the Fund’s investments and the net unrealized depreciation as of April 30, 2022 were as follows:
| | | | | | |
| Tax Basis | | Gross
Unrealized
Appreciation | | Gross
Unrealized
Depreciation | | Net
Unrealized
Depreciation |
$1,149,249,142 | | $55,870,647 | | $(86,114,556) | | $(30,243,909) |
The GAAP basis may differ from tax basis due to certain tax-related adjustments.
For federal income tax purposes, the Fund had a capital loss carryforward as of October 31, 2021 of approximately $255,711,000 which can be carried forward for anunlimited period. The Fund utilized approximately $31,192,000 of its capital loss carryforward to offset net taxable gains realized in the fiscal year ended October 31, 2021. No capital gains distributions are expected to be paid toshareholders until net gains have been realized in excess of such losses.
The Manager has analyzed the Fund’s tax positions taken on federal, state and localincome tax returns for all open tax years and has concluded that no provision for income tax is required in the Fund’s financial statements for the current reporting period. Since tax
86
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 October 31,2021 are subject to such review.
The Fund offers Class A, Class C, Class Z and Class R6 shares . Class A shares are sold with a maximumfront-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 contingent deferred sales charge(“CDSC”) of 1.00% 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 exchangeprivilege 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 convertto Class A shares on a monthly basis approximately eight years (ten years prior to January 22, 2021) after purchase. Class Z and Class R6 shares are not subject to any sales or redemption charges and are available exclusively forsale 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 shareclasses of the Fund as presented in the table of transactions in shares of beneficial interest, below.
The RIC has authorized an unlimited number of shares ofbeneficial interest of the Fund at $0.001 par value per share, currently divided into four classes, designated Class A, Class C, Class Z and Class R6.
As of April 30, 2022, 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 |
| A | | | 2,756 | | | 0.1% |
| R6 | | | 496 | | | 0.1 |
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 | | | 8 | | | 85.3 |
PGIM Absolute Return BondFund 87
Notes to Financial Statements (unaudited) (continued)
Transactions in shares of beneficial interest were as follows:
| | | | | | | | |
| | | |
| Share Class | | Shares | | | Amount | |
| | |
| Class A | | | | | | | | |
| Six months ended April 30, 2022: | | | | | | | | |
| Shares sold | | | 984,305 | | | $ | 8,963,925 | |
| Shares issued in reinvestment of dividends and distributions | | | 104,997 | | | | 956,466 | |
| Shares purchased | | | (3,332,598 | ) | | | (30,245,947 | ) |
| Net increase (decrease) in shares outstanding beforeconversion | | | (2,243,296 | ) | | | (20,325,556 | ) |
| Shares issued upon conversion from other share class(es) | | | 628,169 | | | | 5,738,099 | |
| Shares purchased upon conversion into other share class(es) | | | (256,131 | ) | | | (2,346,407 | ) |
| Net increase (decrease) in shares outstanding | | | (1,871,258 | ) | | $ | (16,933,864 | ) |
| | |
| Year ended October 31, 2021: | | | | | | | | |
| Shares sold | | | 2,519,737 | | | $ | 23,342,981 | |
| Shares issued in reinvestment of dividends and distributions | | | 219,481 | | | | 2,028,875 | |
| Shares purchased | | | (2,990,518 | ) | | | (27,622,965 | ) |
| Net increase (decrease) in shares outstanding beforeconversion | | | (251,300 | ) | | | (2,251,109 | ) |
| Shares issued upon conversion from other share class(es) | | | 2,491,992 | | | | 23,060,684 | |
| Shares purchased upon conversion into other share class(es) | | | (818,387 | ) | | | (7,550,819 | ) |
| Net increase (decrease) in shares outstanding | | | 1,422,305 | | | $ | 13,258,756 | |
| | |
| Class C | | | | | | | | |
| Six months ended April 30, 2022: | | | | | | | | |
| Shares sold | | | 413,461 | | | $ | 3,774,171 | |
| Shares issued in reinvestment of dividends and distributions | | | 28,091 | | | | 256,760 | |
| Shares purchased | | | (574,371 | ) | | | (5,264,121 | ) |
| Net increase (decrease) in shares outstanding beforeconversion | | | (132,819 | ) | | | (1,233,190 | ) |
| Shares purchased upon conversion into other share class(es) | | | (461,793 | ) | | | (4,228,547 | ) |
| Net increase (decrease) in shares outstanding | | | (594,612 | ) | | $ | (5,461,737 | ) |
| | |
| Year ended October 31, 2021: | | | | | | | | |
| Shares sold | | | 522,542 | | | $ | 4,851,562 | |
| Shares issued in reinvestment of dividends and distributions | | | 92,283 | | | | 855,331 | |
| Shares purchased | | | (1,354,330 | ) | | | (12,530,754 | ) |
| Net increase (decrease) in shares outstanding beforeconversion | | | (739,505 | ) | | | (6,823,861 | ) |
| Shares purchased upon conversion into other share class(es) | | | (2,055,211 | ) | | | (19,078,475 | ) |
| Net increase (decrease) in shares outstanding | | | (2,794,716 | ) | | $ | (25,902,336 | ) |
88
| | | | | | | | |
| | | |
| Share Class | | Shares | | | Amount | |
| | |
| Class Z | | | | | | | | |
| Six months ended April 30, 2022: | | | | | | | | |
| Shares sold | | | 38,505,469 | | | $ | 351,946,339 | |
| Shares issued in reinvestment of dividends and distributions | | | 917,519 | | | | 8,386,100 | |
| Shares purchased | | | (22,309,936 | ) | | | (204,175,615 | ) |
| Net increase (decrease) in shares outstanding beforeconversion | | | 17,113,052 | | | | 156,156,824 | |
| Shares issued upon conversion from other share class(es) | | | 353,106 | | | | 3,246,852 | |
| Shares purchased upon conversion into other share class(es) | | | (270,407 | ) | | | (2,483,858 | ) |
| Net increase (decrease) in sharesoutstanding | | | 17,195,751 | | | $ | 156,919,818 | |
| | |
| Year ended October 31, 2021: | | | | | | | | |
| Shares sold | | | 35,120,093 | | | $ | 326,191,894 | |
| Shares issued in reinvestment of dividends and distributions | | | 2,091,073 | | | | 19,407,546 | |
| Shares purchased | | | (72,927,948 | ) | | | (678,007,297 | ) |
| Net increase (decrease) in shares outstanding beforeconversion | | | (35,716,782 | ) | | | (332,407,857 | ) |
| Shares issued upon conversion from other share class(es) | | | 1,152,690 | | | | 10,687,873 | |
| Shares purchased upon conversion into other share class(es) | | | (1,888,354 | ) | | | (17,538,221 | ) |
| Net increase (decrease) in sharesoutstanding | | | (36,452,446 | ) | | $ | (339,258,205 | ) |
| | |
| Class R6 | | | | | | | | |
| Six months ended April 30, 2022: | | | | | | | | |
| Shares sold | | | 421,524 | | | $ | 3,820,674 | |
| Shares issued in reinvestment of dividends and distributions | | | 81,294 | | | | 739,899 | |
| Shares purchased | | | (445,356 | ) | | | (4,055,321 | ) |
| Net increase (decrease) in shares outstanding beforeconversion | | | 57,462 | | | | 505,252 | |
| Shares issued upon conversion from other share class(es) | | | 8,170 | | | | 73,861 | |
| Net increase (decrease) in sharesoutstanding | | | 65,632 | | | $ | 579,113 | |
| | |
| Year ended October 31, 2021: | | | | | | | | |
| Shares sold | | | 444,812 | | | $ | 4,053,717 | |
| Shares issued in reinvestment of dividends and distributions | | | 299,248 | | | | 2,762,297 | |
| Shares purchased | | | (9,656,641 | ) | | | (89,403,883 | ) |
| Net increase (decrease) in shares outstanding beforeconversion | | | (8,912,581 | ) | | | (82,587,869 | ) |
| Shares issued upon conversion from other share class(es) | | | 1,126,351 | | | | 10,418,958 | |
| Net increase (decrease) in sharesoutstanding | | | (7,786,230 | ) | | $ | (72,168,911 | ) |
The RIC, on behalf of the Fund, along with other affiliated registered investment companies (the “Participating Funds”), is a party to a Syndicated CreditAgreement (“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.
| | | | |
| | | | | SCA |
| Term of Commitment | | | | 10/1/2021 – 9/29/2022 |
PGIM Absolute Return BondFund 89
Notes to Financial Statements (unaudited) (continued)
| | | | |
| | | | | SCA |
| Total Commitment | | | | $ 1,200,000,000 |
| Annualized Commitment Fee on the Unused Portion of the SCA | | | | 0.15% |
| Annualized Interest Rate on Borrowings | | | | 1.20% plus the higher of (1) the effective federalfunds rate, (2) the one-month LIBOR rate or (3) zero percent |
Certain affiliated registered investment companies that are parties to the SCA include portfolios that are subject to a predeterminedmathematical 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 utilizethe 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 theParticipating Funds in the SCA equitably.
The Fund did not utilize the SCA during the reporting period ended April 30, 2022.
| 9. | Risks of Investing in the Fund |
The Fund’s 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 theFund’s Prospectus and Statement of Additional Information.
“Covenant-Lite” Risk: Some of the loans or debt obligations in which the Fund mayinvest or get exposure to may be “covenant-lite”, which means the loans or obligations contain fewer financial maintenance covenants than other loans or obligations (in some cases, none) and do not include terms which allow the lender tomonitor the borrower’s performance and declare a default if certain criteria are breached. An investment by the Fund in a covenant-lite loan may potentially hinder the ability to reprice credit risk associated with the issuer and reduce theability to restructure a problematic loan and mitigate potential loss. The Fund may also experience difficulty, expenses or delays in enforcing its rights on its holdings of covenant-lite loans or obligations. As a result of these risks, theFund’s exposure to losses may be increased, which could result in an adverse impact on the Fund’s net income and NAV.
Credit Risk: This is the riskthat 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 incomesecurities could lose value due to a loss of confidence in the ability of the issuer,
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guarantor, insurer or counterparty to pay back debt. The lower the credit quality of a bond, the more sensitive it is to credit risk.
Currency Risk: The Fund’s net asset value could decline as a result of changes in exchange rates, which could adversely affect the Fund’s investments incurrencies, or in securities that trade in, and receive revenues related to, currencies, or in derivatives that provide exposure to currencies. Certain foreign countries may impose restrictions on the ability of issuers of foreign securities to makepayment of principal and interest or dividends to investors located outside the country, due to blockage of foreign currency exchanges or otherwise.
DebtObligations Risk: Debt obligations 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 maydecline 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 redemptionrisk,” which is the risk that the issuer may call a bond held by the Fund for redemption before it matures and the Fund may lose income.
Economic and MarketEvents 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, may at timesresult in unusually high market volatility, which could negatively impact performance. Relatively reduced liquidity in credit and fixed income markets could adversely affect issuers worldwide.
Floating Rate and Other Loans Risk: The Fund’s ability to receive payments of principal and interest and other amounts in connection with loans (whetherthrough participations, assignments or otherwise) will depend primarily on the financial condition of the borrower. The failure by the Fund to receive scheduled interest or principal payments on a loan because of a default, bankruptcy or any otherreason would adversely affect the income of the Fund and would likely reduce the value of its assets. Even with loans secured by collateral, there is the risk that the value of the collateral may decline, may be insufficient to meet the obligationsof the borrower, or be difficult to liquidate. In the event of a default, the Fund may have difficulty collecting on any collateral and would not have the ability to collect on any collateral for an uncollateralized loan. Further, the Fund’saccess to collateral, if any, may be limited by bankruptcy laws. Due to the nature of the private syndication of senior loans, including, for example, lack of publicly-available information, some senior loans are not as easily purchased or sold aspublicly-traded securities. In addition, loan participations generally are subject to restrictions on transfer, and only limited opportunities may exist to sell loan participations in secondary markets. As a result, it may be difficult for the Fundto value loans or sell loans at an acceptable price when it wants to sell them. Loans trade in an over-the-counter market, and confirmation and settlement, which areeffected through standardized procedures and documentation, may take significantly longer than seven days to complete. Extended trade settlement periods may, in unusual market conditions with a high volume of shareholder redemptions, present a riskto shareholders regarding the
PGIM Absolute Return BondFund 91
Notes to Financial Statements (unaudited) (continued)
Fund’s ability to pay redemption proceeds in a timely manner. In some instances, loans and loan participations are not rated by independent credit rating agencies; in such instances, adecision by the Fund to invest in a particular loan or loan participation could depend exclusively on the subadviser’s credit analysis of the borrower, or in the case of a loan participation, of the intermediary holding the portion of the loanthat the Fund has purchased. To the extent the Fund invests in loans of non-U.S. issuers, the risks of investing in non-U.S. issuers are applicable. Loans may not beconsidered to be “securities” and as a result may not benefit from the protections of the federal securities laws, including anti-fraud protections and those with respect to the use of materialnon-public information, so that purchasers, such as the Fund, may not have the benefit of these protections. If the Fund is in possession of material non-publicinformation about a borrower as a result of its investment in such borrower’s loan, the Fund may not be able to enter into a transaction with respect to a publicly-traded security of the borrower when it would otherwise be advantageous to doso.
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 tonon-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 theability 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 togreater volatility and price declines.
In addition, the Fund’s investments in non-U.S. securities may be subject to therisks 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 diplomaticdevelopments. Special U.S. tax considerations may apply.
Increase in Expenses Risk: Your actual cost of investing in the Fund may be higher than the expensesshown 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 morelikely to increase when markets are volatile. Active and frequent trading of Fund securities can increase expenses.
92
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 debtsecurities. For 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, theissuers 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.” When interest rates rise, debtobligations 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 ina manner not anticipated by the subadviser.
Junk Bonds Risk: High-yield, high-risk bonds have predominantly speculative characteristics, includingparticularly high credit risk. Junk bonds tend to have lower market liquidity than higher-rated securities. The liquidity of particular issuers or industries within a particular investment category may shrink or disappear suddenly and withoutwarning. The non-investment grade bond market can experience sudden and sharp price swings and become illiquid due to a variety of factors, including changes in economic forecasts, stock market activity, largesustained sales by major investors, a high profile default or a change in the market’s psychology.
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 norequirement 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 shortperiod 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 itsinvestment 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.
LIBOR Risk: Many financial instruments use or may use a floating rate based on the London Interbank Offered Rate, or “LIBOR,” which is the offered ratefor short-term Eurodollar deposits between major international banks. Over the course of the last several years, global regulators have indicated an intent to phase out the use of LIBOR and similar interbank offering rates (“IBOR”). Therestill remains uncertainty regarding the nature of any replacement rates for LIBOR and the other IBORs as well as around fallback approaches for instruments extending beyond the any phase-out of these referencerates. The lack of consensus around replacement rates and the uncertainty of the phase out of LIBOR and other IBORs may result in increased volatility in corporate or governmental debt, floating rate and other loans, derivatives and otherinstruments invested in by the Fund as well as loan facilities used by the Fund.
PGIM Absolute Return BondFund 93
Notes to Financial Statements (unaudited) (continued)
The potential effect of a transition away from LIBOR on the Fund or the financial instruments in which the Fund investscannot yet be determined. The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securitiesor payments linked to those reference rates, which may adversely affect the Fund’s performance and/or net asset value. Certain proposed replacement rates to LIBOR, such as the Secured Overnight Financing Rate (“SOFR”), are materiallydifferent from LIBOR, and changes in the applicable spread for instruments previously linked to LIBOR will need to be made in order for instruments to pay similar rates. Uncertainty and risk also remain regarding the willingness and ability ofissuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition away from LIBOR to other reference rates may lead to reduced coupons on debt held by the Fund, higher rates required to bepaid by the Fund on bank lines of credit due to increases in spreads, increased volatility and illiquidity in markets that are tied to LIBOR, fluctuations in values of LIBOR-related investments or investments in issuers that utilize LIBOR, increaseddifficulty in borrowing or refinancing and diminished effectiveness of hedging strategies, adversely affecting the Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may beexacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. Because the usefulness of LIBOR and the other IBORs as benchmarks could deteriorate during the transition period,these effects could be experienced until the anticipated discontinuance date in 2023 for the majority of the LIBOR rates.
Liquidity Risk: Liquidity risk isthe risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of remaining investors’ interests in the Fund. The Fund may invest in instruments that trade in lower volumes and are more illiquidthan other investments. If the Fund is forced to sell these investments to pay redemption proceeds or for other reasons, the Fund may lose money. In addition, when there is no willing buyer and investments cannot be readily sold at the desired timeor price, the Fund may have to accept a lower price or may not be able to sell the instrument at all. An inability to sell a portfolio position can adversely affect the Fund’s value or prevent the Fund from being able to take advantage of otherinvestment opportunities.
Management Risk: The value of your investment may decrease if judgments by the subadviser about the attractiveness, value or markettrends affecting a particular security, industry or sector or about market movements are incorrect.
Market Disruption and Geopolitical Risks: Marketdisruption 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), geopolitical developments (including trading andtariff arrangements, sanctions and cybersecurity attacks), instability
94
in regions such as Asia, Eastern Europe and the Middle East, terrorism, natural disasters and public health epidemics (including the outbreak of COVID-19globally).
The extent and duration of such events and resulting market disruptions cannot be predicted, but could be substantial and could magnify the impact ofother 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 andthe 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 ofissuers 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 certainsecurities, the value of certain securities held by the Fund could be significantly impacted, which could lead to such securities being valued at zero.
COVID-19 and the related governmental and public responses have had and may continue to have an impact on the Fund’s investments and net asset value and have led and may continue to lead to increased marketvolatility and the potential for illiquidity in certain classes of securities and sectors of the market. They have also had and may continue to result in periods of business disruption, business closures, inability to obtain raw materials, suppliesand component parts, and reduced or disrupted operations for the issuers in which the Fund invests. The occurrence, reoccurrence and pendency of public health epidemics could adversely affect the economies and financial markets either in specificcountries or worldwide.
Market Risk: Securities markets may be volatile and the market prices of the Fund’s securities may decline. Securities fluctuatein 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
Mortgage-Backed and Asset-Backed Securities Risk: Mortgage-backed and asset-backed securities tend to increase in value less than other debt securities wheninterest 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 ofdeclining interest rates, the Fund may be required to reinvest more frequent prepayments on mortgage-backed and asset-backed securities in lower-yielding investments.
U.S. Government and Agency Securities Risk: U.S. Government and agency securities are subject to market risk, interest rate risk and credit risk. Not all U.S.Government securities are insured or guaranteed by the full faith and credit of the U.S. Government; some are only insured or guaranteed by the issuing agency, which must rely on its own resources to repay the debt. Some agency securities carry noguarantee whatsoever and the risk of default associated with these securities would be borne by the Fund. The maximum potential
PGIM Absolute Return BondFund 95
Notes to Financial Statements (unaudited) (continued)
liability of the issuers of some U.S. Government securities held by the Fund may greatly exceed their current resources, including their legal right to support from the U.S. Treasury. Noassurance can be given that the U.S. government would provide financial support to any such issuers if it is not obligated to do so by law. It is possible that these issuers will not have the funds to meet their payment obligations in the future. Inaddition, the value of U.S. Government securities may be affected by changes in the credit rating of the U.S. Government.
| 10. | Recent Accounting Pronouncement and Regulatory Developments |
In March 2020, the FASB issued Accounting Standard Update (“ASU”) No. 2020-04, which provides optional guidance forapplying GAAP to contract modifications, hedging relationships and other transactions affected by the reference rate reform if certain criteria are met. ASU 2020-04 is elective and is effective onMarch 12, 2020 through December 31, 2022. Management does not expect ASU 2020-04 to have a material impact on the financial statements.
On December 3, 2020, the SEC announced that it voted to adopt a new rule that establishes an updated regulatory framework for fund valuation practices (the“Rule”). The Rule, in part, provides (i) a framework for determining fair value in good faith and (ii) provides for a fund Board’s assignment of its responsibility for the execution of valuation-related activities to afund’s investment adviser. Further, the SEC is rescinding previously issued guidance on related issues. The Rule took effect on March 8, 2021, with a compliance date of September 8, 2022. Management is currently evaluating the Ruleand its impact to the Fund.
96
Liquidity Risk Management Program (unaudited)
Consistent with Rule 22e-4 under the 1940 Act (the “Liquidity Rule”), the Fund has adopted and implemented a liquidityrisk management program (the “LRMP”). The Fund’s LRMP seeks to assess and manage the Fund’s liquidity risk, which is defined as the risk that the Fund is unable to meet investor redemption requests without significantly dilutingthe remaining investors’ interests in the Fund. The Board has approved PGIM Investments LLC (“PGIM Investments”), the Fund’s investment manager, to serve as the administrator of the Fund’s LRMP. As part of itsresponsibilities as administrator, PGIM Investments has retained a third party to perform certain functions, including providing market data and liquidity classification model information.
The Fund’s LRMP includes a number of processes designed to support the assessment and management of its liquidity risk. In particular, the Fund’s LRMP includesno less than annual assessments of factors that influence the Fund’s liquidity risk; no less than monthly classifications of the Fund’s investments into one of four liquidity classifications provided for in the Liquidity Rule; a 15% of netassets limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); establishment of a minimum percentage of the Fund’s assets to be invested in investments classified as “highly liquid” (asdefined under the Liquidity Rule) if the Fund does not invest primarily in highly liquid investments; and regular reporting to the Board.
At a meeting of the Boardon March 1-3, 2022, PGIM Investments provided a written report (“LRMP Report”) to the Board addressing the operation, adequacy, and effectiveness of the Fund’s LRMP, including any materialchanges to the LRMP for the period from January 1, 2021 through December 31, 2021 (“Reporting Period”). The LRMP Report concluded that the Fund’s LRMP was reasonably designed to assess and manage the Fund’s liquidityrisk and was adequately and effectively implemented during the Reporting Period. There were no material changes to the LRMP during the Reporting Period. The LRMP Report further concluded that the Fund’s investment strategies continue to beappropriate given the Fund’s status as an open-end fund.
There can be no assurance that the LRMP will achieve itsobjectives in the future. Additional information regarding risks of investing in the Fund, including liquidity risks presented by the Fund’s investment portfolio, is found in the Fund’s Prospectus and Statement of Additional Information.
PGIM Absolute Return BondFund 97
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⬛ MAIL 655 Broad Street Newark, NJ 07102 | | ⬛ TELEPHONE (800) 225-1852 | | ⬛ WEBSITE pgim.com/investments |
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| PROXY VOTING The Board of Trustees of the Fund has delegated to the Fund’s subadviser the responsibilityfor voting any proxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800)225-1852 or by visiting the Securities and Exchange Commission’s website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website and on the Securities and Exchange Commission’s website. |
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| TRUSTEES Ellen S. Alberding ● KevinJ. Bannon ● Scott E. Benjamin ● Linda W. Bynoe ● Barry H. Evans ● Keith F. Hartstein● Laurie Simon Hodrick ● Stuart S. Parker ● Brian K. Reid● Grace C. Torres |
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| OFFICERS Stuart S. Parker, President● Scott E. Benjamin, Vice President ● Christian J. Kelly, Treasurer and PrincipalFinancial and Accounting Officer ● Claudia DiGiacomo, Chief Legal Officer ● Isabelle Sajous, Chief Compliance Officer ● Jonathan Corbett, Anti-Money Laundering ComplianceOfficer ● Andrew R. French, Secretary ● Melissa Gonzalez, Assistant Secretary ● Diana N. Huffman, Assistant Secretary ● Kelly A. Coyne, Assistant Secretary ● Patrick E. McGuinness, Assistant Secretary ● Debra Rubano, Assistant Secretary ● Lana Lomuti, Assistant Treasurer ● Russ Shupak, Assistant Treasurer ● Elyse M. McLaughlin, Assistant Treasurer ● Deborah Conway, Assistant Treasurer |
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| MANAGER | | PGIM Investments LLC | | 655 Broad Street Newark, NJ 07102 |
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| SUBADVISER | | PGIM Fixed Income | | 655 Broad Street Newark, NJ07102 |
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SUB-SUBADVISER | | PGIM Limited | | Grand Buildings, 1-3 Strand Trafalgar Square London, WC2N 5HR United Kingdom |
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| DISTRIBUTOR | | Prudential Investment Management Services LLC | | 655 Broad Street Newark, NJ 07102 |
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| CUSTODIAN | | The Bank of New York Mellon | | 240 Greenwich Street New York, NY 10286 |
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| TRANSFER AGENT | | Prudential Mutual Fund Services LLC | | PO Box 9658 Providence, RI 02940 |
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| INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | | PricewaterhouseCoopers LLP | | 300 Madison Avenue New York, NY 10017 |
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| FUND COUNSEL | | Willkie Farr & Gallagher LLP | | 787 Seventh Avenue New York, NY 10019 |
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| An investor should consider the investment objectives, risks, charges, andexpenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund. An investor may obtain the prospectus and summary prospectus by visiting our website atpgim.com/investments or by calling (800) 225-1852. The prospectus and summary prospectus should be read carefully before investing. |
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| E-DELIVERY To receive your mutual fund documents online, go topgim.com/investments/resource/edelivery and enroll. Instead of receiving printed documents by mail, you will receive notification via email when new materials are available. You can cancel your enrollment or change youremail address at any time by visiting the website address above. |
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| SHAREHOLDER COMMUNICATIONS WITH TRUSTEES Shareholders can communicate directly with the Board of Trustees by writing to the Chair of theBoard, PGIM Absolute Return Bond Fund, PGIM Investments, Attn: Board of Trustees, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Trustee by writing to that Trustee at the same address. Communications arenot screened before being delivered to the addressee. |
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| AVAILABILITY OF PORTFOLIO HOLDINGS The Fund files its complete schedule of portfolio holdings with the Securities and ExchangeCommission on Form N-PORT. The Fund’s Form N-PORT filings are available on the Commission’s website at sec.gov. FormN-PORT is filed with the Commission quarterly, and each Fund’s full portfolio holdings as of the first and third fiscal quarter-ends will be made publicly available 60 days after the end of each quarterat sec.gov. |
Mutual Funds:
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ARE NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY | | MAY LOSE VALUE | | ARE NOT A DEPOSIT OFOR GUARANTEED BY ANY BANK OR ANY BANK AFFILIATE |
PGIM ABSOLUTE RETURN BOND FUND
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| SHARE CLASS | | | | | A | | C | | Z | | R6 |
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| NASDAQ | | | | | | PADAX | | PADCX | | PADZX | | PADQX |
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| CUSIP | | | | | | 74441J852 | | 74441J845 | | 74441J829 | | 74441J837 |
MF213E2
PGIM QUANT SOLUTIONS LARGE-CAP CORE FUND
Formerly known as PGIM QMA Large-Cap Core Equity Fund
SEMIANNUAL REPORT
APRIL 30,2022
To enroll in e-delivery, go to pgim.com/investments/resource/edelivery
Table of Contents
This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
The information about the Fund’s portfolio holdings is for the period covered by this report and is subject to change thereafter.
The accompanying financial statements as of April 30, 2022 were not audited and, accordingly, no auditor’s opinion is expressed on them.
Mutual funds are distributed by Prudential Investment Management Services LLC, a Prudential Financial company, member SIPC. PGIM Quantitative Solutions is the primarybusiness name of PGIM Quantitative Solutions LLC (formerly known as QMA LLC), a wholly owned subsidiary of PGIM, Inc. (PGIM), a registered investment adviser and Prudential Financial company.© 2022 Prudential Financial, Inc. and its related entities. PGIM and the PGIM logo are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictionsworldwide.
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| 2 | | Visit our website at pgim.com/investments |
Letter from the President
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 | | Dear Shareholder: We hope you find the semiannual report for the PGIM Quant Solutions Large-Cap Core Fund informative and useful. The report coversperformance for the six-month period ended April 30, 2022. Regarding your investments with PGIM, we believe it is important to maintain a diversified portfolio of funds consistent with your tolerance for risk, time horizon, andfinancial goals. |
| Your financial advisor can help you create a diversified investmentplan that may include funds covering all the basic asset classes and that reflects your personal investor profile and risk tolerance. However, diversification and asset allocation strategies do not assure a profit or protect against loss indeclining markets. At PGIM Investments, we provide access to active investment strategiesacross the global markets in the pursuit of consistent outperformance for investors. PGIM is a top-10 investment manager globally with more than $1.5 trillion in assets under management. Our scale andinvestment expertise allow us to deliver a diversified suite of actively managed solutions across a broad spectrum of asset classes and investment styles. Thank you for choosing our family of funds. Sincerely, 
Stuart S. Parker, President PGIM Quant Solutions Large-Cap Core Fund June 15, 2022 |
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| PGIM Quant Solutions Large-Cap CoreFund | | | 3 | |
Your Fund’s Performance
Performance data quoted represent past performance. Past performance does not guarantee futureresults. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the pastperformance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at pgim.com/investments or by calling (800) 225-1852.
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| | | Total Returns as of 4/30/22 | | | Average Annual Total Returns as of 4/30/22 | |
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| | | Six Months* (%) | | | One Year (%) | | | Five Years (%) | | | Ten Years (%) | | | Since Inception (%) | |
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| Class A | | | -7.03 | | | | -4.14 | | | | 10.91 | | | | 11.98 | | | | — | |
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| Class C | | | -7.37 | | | | -0.12 | | | | 11.37 | | | | 11.79 | | | | — | |
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| Class Z | | | -6.88 | | | | 1.66 | | | | 12.45 | | | | 12.89 | | | | — | |
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| Class R6 | | | -6.82 | | | | 1.85 | | | | 12.61 | | | | N/A | | | | 12.96 (12/28/2016) | |
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| S&P 500 Index | | | | | | | | | | | | | | | | | | | | |
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| | | | -9.64 | | | | 0.21 | | | | 13.65 | | | | 13.66 | | | | — | |
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| | | AverageAnnual Total Returns as of 4/30/22 Since Inception (%) | | | | |
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| S&P 500 Index | | | | | | | | | | | | | | | | | | | 14.22 | |
*Not annualized
Since Inception returns are providedfor any share class with 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.
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| 4 | | Visit our website at pgim.com/investments |
The returns in the tables do not reflect thededuction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. The average annual total returns take into account applicable sales charges, which are described for each share class in the tablebelow.
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| | | Class A | | Class C | | Class Z | | Class R6 |
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| Maximum initial sales charge | | 5.50% of the public offering price | | None | | None | | None |
| Contingent deferred sales charge (CDSC) (as a percentage of the lower of the original purchase price or the net asset valueat redemption) | | 1.00% on sales of $1 million or more made within 12 months of purchase | | 1.00% on sales made within 12 months of purchase | | None | | None |
| Annual distribution and service (12b-1) fees (shown as a percentage of averagedaily net assets) | | 0.30% (0.25% currently) | | 1.00% | | None | | None |
Benchmark Definition
S&P 500 Index*—The S&P 500 Index is an unmanaged index of over 500 stocks of large US public companies. It gives a broad look at how stock prices inthe United States have performed.
*The S&P 500 Index (“Index”) is a product of S&P Dow Jones Indices LLC and/or its affiliates and has beenlicensed for use by PGIM, Inc. and/or its affiliates. Copyright © 2022 S&P Dow Jones Indices LLC, a division of S&P Global, Inc., and/or its affiliates. All rights reserved.Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. For more information on any of S&P Dow Jones Indices LLC’s indices please visit www.spdji.com. S&P® is a registered trademark of S&P Global and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC.
Investors cannot invest directly in an index. The returns for the Index would be lower if they included the effects of sales charges, operating expenses of a mutualfund, or taxes that may be paid by an investor.
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| PGIM Quant Solutions Large-Cap CoreFund | | | 5 | |
Your Fund’s Performance (continued)
Presentation of Fund Holdings as of 4/30/22
| | | | |
| | |
| Ten Largest Holdings | | Line of Business | | % of Net Assets |
| | |
| Apple, Inc. | | Technology Hardware, Storage & Peripherals | | 6.3% |
| | |
| Microsoft Corp. | | Software | | 6.3% |
| | |
| Tesla, Inc. | | Automobiles | | 2.5% |
| | |
| Amazon.com, Inc. | | Internet & Direct Marketing Retail | | 2.4% |
| | |
| Alphabet, Inc. (Class A Stock) | | Interactive Media & Services | | 2.2% |
| | |
| Alphabet, Inc. (Class C Stock) | | Interactive Media & Services | | 2.0% |
| | |
| UnitedHealth Group, Inc. | | Health Care Providers & Services | | 1.8% |
| | |
| Exxon Mobil Corp. | | Oil, Gas & Consumable Fuels | | 1.8% |
| | |
| Visa, Inc. (Class A Stock) | | IT Services | | 1.5% |
| | |
| Johnson & Johnson | | Pharmaceuticals | | 1.3% |
Holdings reflect only long-term investments and are subject to change.
| | |
| 6 | | Visit our website at pgim.com/investments |
Fees and Expenses
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, includingsales charges (loads) on purchase payments and redemptions, as applicable, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses, asapplicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 held through the six-month period ended April 30, 2022. The example is forillustrative purposes only; you should consult the Prospectus for information on initial and subsequent minimum investment requirements.
Actual Expenses
The first line for each share class in the table on the following page provides information about actual account values and actual expenses. You may use the informationon this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result bythe number on the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line for each shareclass in the table on the following page provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not theFund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in theFund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
The Fund’s transfer agent may charge additional fees to holders of certain accounts that are not included in the expenses shown in the table on the following page.These fees apply to individual retirement accounts (IRAs) and Section 403(b) accounts. As of the close of the six-month period covered by the table, IRA fees included an annual maintenance fee of $15 peraccount (subject to a maximum annual maintenance fee of $25 for all accounts held by the same shareholder). Section 403(b) accounts are charged an annual $25 fiduciary maintenance fee. Some of the fees may vary in amount, or may be waived,based on your total account balance or the number of PGIM funds, including the Fund, that you own. You should consider the additional fees that were charged to your Fund account over the six-month period whenyou estimate the total ongoing expenses paid over the period and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information
| | | | |
| PGIM Quant Solutions Large-Cap CoreFund | | | 7 | |
Fees and Expenses(continued)
provided in the expense table. Additional fees have the effect of reducing investment returns.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads).Therefore, the second line for each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, yourcosts would have been higher.
| | | | | | | | | | |
| | | | |
| PGIMQuant Solutions Large-Cap CoreFund | | Beginning
Account Value
November 1, 2021 | | Ending
Account Value
April 30, 2022 | | Annualized
Expense
Ratio Based on the
Six-Month Period | | Expenses Paid
Duringthe
Six-Month Period* |
| | | | | |
| Class A | | Actual | | $1,000.00 | | $ 929.70 | | 0.72% | | $3.44 |
| | | | | |
| | Hypothetical | | $1,000.00 | | $1,021.22 | | 0.72% | | $3.61 |
| | | | | |
| Class C | | Actual | | $1,000.00 | | $ 926.30 | | 1.44% | | $6.88 |
| | | | | |
| | Hypothetical | | $1,000.00 | | $1,017.65 | | 1.44% | | $7.20 |
| | | | | |
| Class Z | | Actual | | $1,000.00 | | $ 931.20 | | 0.49% | | $2.35 |
| | | | | |
| | Hypothetical | | $1,000.00 | | $1,022.36 | | 0.49% | | $2.46 |
| | | | | |
| Class R6 | | Actual | | $1,000.00 | | $ 931.80 | | 0.35% | | $1.68 |
| | | Hypothetical | | $1,000.00 | | $1,023.06 | | 0.35% | | $1.76 |
*Fund expenses (net of fee waivers or subsidies, if any) for each share class are equal to the annualized expense ratio for each shareclass (provided in the table), multiplied by the average account value over the period, multiplied by the 181 days in the six-month period ended April 30, 2022, and divided by the 365 days in theFund’s fiscal year ending October 31, 2022 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
| | |
| 8 | | Visit our website at pgim.com/investments |
Schedule of Investments (unaudited)
as of April 30, 2022
| | | | | | | | | | |
| | | |
| | Description | | Shares | | | Value | |
| | | |
| | LONG-TERM INVESTMENTS 98.4% | | | | | | | | |
| | | |
| | COMMON STOCKS | | | | | | | | |
| | | |
| | | Aerospace &Defense 1.2% | | | | | | | | |
| | General Dynamics Corp. | | | 18,200 | | | $ | 4,304,846 | |
| | L3Harris Technologies, Inc. | | | 2,000 | | | | 464,520 | |
| | Lockheed Martin Corp. | | | 1,033 | | | | 446,380 | |
| | Raytheon Technologies Corp. | | | 41,250 | | | | 3,915,038 | |
| | TransDigm Group, Inc.* | | | 400 | | | | 237,924 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 9,368,708 | |
| | | |
| | | Air Freight &Logistics 0.7% | | | | | | | | |
| | FedEx Corp. | | | 13,600 | | | | 2,702,864 | |
| | United Parcel Service, Inc. (Class B Stock) | | | 15,200 | | | | 2,735,696 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 5,438,560 | |
| | | |
| | | Airlines 0.2% | | | | | | | | |
| | Delta Air Lines, Inc.* | | | 38,100 | | | | 1,639,443 | |
| | | |
| | | Automobiles 3.1% | | | | | | | | |
| | Ford Motor Co. | | | 352,000 | | | | 4,984,320 | |
| | Tesla, Inc.* | | | 22,600 | | | | 19,679,176 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 24,663,496 | |
| | | |
| | | Banks 3.6% | | | | | | | | |
| | Bank of America Corp. | | | 166,600 | | | | 5,944,288 | |
| | Citigroup, Inc. | | | 47,478 | | | | 2,288,915 | |
| | Hancock Whitney Corp. | | | 5,100 | | | | 238,527 | |
| | JPMorgan Chase & Co. | | | 40,281 | | | | 4,807,940 | |
| | KeyCorp | | | 85,800 | | | | 1,656,798 | |
| | Regions Financial Corp. | | | 27,700 | | | | 573,944 | |
| | Truist Financial Corp. | | | 57,700 | | | | 2,789,795 | |
| | U.S. Bancorp | | | 70,100 | | | | 3,404,056 | |
| | Wells Fargo & Co. | | | 171,900 | | | | 7,499,997 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 29,204,260 | |
| | | |
| | | Beverages 2.2% | | | | | | | | |
| | Coca-Cola Co. (The) | | | 135,600 | | | | 8,761,116 | |
| | PepsiCo, Inc. | | | 51,200 | | | | 8,791,552 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 17,552,668 | |
See Notes to Financial Statements.
| | | | |
| PGIM Quant Solutions Large-Cap Core Fund | | | 9 | |
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
| | | | | | | | | | |
| | | |
| | Description | | Shares | | | Value | |
| | | |
| | COMMON STOCKS (Continued) | | | | | | | | |
| | | |
| | | Biotechnology 1.8% | | | | | | | | |
| | AbbVie, Inc. | | | 41,751 | | | $ | 6,132,387 | |
| | Gilead Sciences, Inc. | | | 62,872 | | | | 3,730,824 | |
| | Regeneron Pharmaceuticals, Inc.* | | | 1,700 | | | | 1,120,487 | |
| | Sarepta Therapeutics, Inc.* | | | 3,400 | | | | 245,888 | |
| | Vertex Pharmaceuticals, Inc.* | | | 12,500 | | | | 3,415,250 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 14,644,836 | |
| | | |
| | | Building Products 0.4% | | | | | | | | |
| | Armstrong World Industries,Inc. | | | 6,700 | | | | 567,222 | |
| | Carlisle Cos., Inc. | | | 3,900 | | | | 1,011,504 | |
| | Owens Corning | | | 13,500 | | | | 1,227,555 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 2,806,281 | |
| | | |
| | | Capital Markets 2.6% | | | | | | | | |
| | Affiliated Managers Group,Inc. | | | 3,700 | | | | 464,609 | |
| | Ameriprise Financial, Inc. | | | 7,600 | | | | 2,017,724 | |
| | Bank of New York Mellon Corp. (The) | | | 5,700 | | | | 239,742 | |
| | Carlyle Group, Inc. (The) | | | 27,600 | | | | 1,001,604 | |
| | Goldman Sachs Group, Inc. (The) | | | 22,277 | | | | 6,805,401 | |
| | Morgan Stanley | | | 58,000 | | | | 4,674,220 | |
| | Piper Sandler Cos. | | | 2,100 | | | | 241,458 | |
| | Raymond James Financial, Inc. | | | 17,400 | | | | 1,695,804 | |
| | State Street Corp. | | | 28,200 | | | | 1,888,554 | |
| | Stifel Financial Corp. | | | 32,400 | | | | 2,003,940 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 21,033,056 | |
| | | |
| | | Chemicals 1.9% | | | | | | | | |
| | Dow, Inc. | | | 75,600 | | | | 5,027,400 | |
| | DuPont de Nemours, Inc. | | | 65,800 | | | | 4,338,194 | |
| | Olin Corp. | | | 10,200 | | | | 585,480 | |
| | Westlake Corp. | | | 38,400 | | | | 4,859,520 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 14,810,594 | |
| | | |
| | | Communications Equipment 0.2% | | | | | | | | |
| | Cisco Systems, Inc. | | | 36,682 | | | | 1,796,684 | |
| | | |
| | | Construction &Engineering 0.1% | | | | | | | | |
| | API Group Corp.* | | | 16,900 | | | | 313,664 | |
| | EMCOR Group, Inc. | | | 6,677 | | | | 710,967 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 1,024,631 | |
See Notes to Financial Statements.
| | | | | | | | | | |
| | | |
| | | Description | | Shares | | | Value | |
| | | |
| | COMMON STOCKS (Continued) | | | | | | | | |
| | | |
| | | Construction Materials 0.3% | | | | | | | | |
| | Eagle Materials, Inc. | | | 20,700 | | | $ | 2,552,724 | |
| | | |
| | | Consumer Finance 1.0% | | | | | | | | |
| | American Express Co. | | | 14,700 | | | | 2,568,237 | |
| | Capital One Financial Corp. | | | 41,500 | | | | 5,171,730 | |
| | Enova International, Inc.* | | | 13,600 | | | | 508,640 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 8,248,607 | |
| | | |
| | | Containers &Packaging 0.1% | | | | | | | | |
| | Westrock Co. | | | 15,900 | | | | 787,527 | |
| | | |
| | | Distributors 0.1% | | | | | | | | |
| | Genuine Parts Co. | | | 3,500 | | | | 455,175 | |
| | LKQ Corp. | | | 12,500 | | | | 620,375 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 1,075,550 | |
| | | |
| | | Diversified FinancialServices 1.1% | | | | | | | | |
| | Berkshire Hathaway, Inc. (Class BStock)* | | | 27,774 | | | | 8,966,280 | |
| | | |
| | | Diversified TelecommunicationServices 0.9% | | | | | | | | |
| | AT&T, Inc. | | | 58,835 | | | | 1,109,628 | |
| | Verizon Communications, Inc. | | | 138,950 | | | | 6,433,385 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 7,543,013 | |
| | | |
| | | Electric Utilities 1.0% | | | | | | | | |
| | Constellation Energy Corp. | | | 4,781 | | | | 283,083 | |
| | Edison International | | | 15,800 | | | | 1,086,882 | |
| | Exelon Corp. | | | 78,845 | | | | 3,688,369 | |
| | PG&E Corp.* | | | 70,700 | | | | 894,355 | |
| | PPL Corp. | | | 45,000 | | | | 1,273,950 | |
| | Southern Co. (The) | | | 15,400 | | | | 1,130,206 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 8,356,845 | |
| | | |
| | | Electrical Equipment 1.3% | | | | | | | | |
| | AMETEK, Inc. | | | 11,000 | | | | 1,388,860 | |
| | Atkore, Inc.* | | | 40,221 | | | | 3,865,238 | |
| | Emerson Electric Co. | | | 25,400 | | | | 2,290,572 | |
| | Encore Wire Corp. | | | 17,000 | | | | 1,917,770 | |
| | Hubbell, Inc. | | | 4,800 | | | | 937,728 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 10,400,168 | |
See Notes to Financial Statements.
| | | | |
| PGIM Quant Solutions Large-Cap Core Fund | | | 11 | |
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
| | | | | | | | | | |
| | | |
| | | Description | | Shares | | | Value | |
| | | |
| | COMMON STOCKS (Continued) | | | | | | | | |
| | | |
| | | Electronic Equipment, Instruments &Components 0.8% | | | | | | | | |
| | Corning, Inc. | | | 139,600 | | | $ | 4,912,524 | |
| | Jabil, Inc. | | | 20,800 | | | | 1,200,784 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 6,113,308 | |
| | | |
| | | Energy Equipment &Services 0.3% | | | | | | | | |
| | Halliburton Co. | | | 57,700 | | | | 2,055,274 | |
| | Schlumberger NV | | | 14,800 | | | | 577,348 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 2,632,622 | |
| | | |
| | | Entertainment 1.5% | | | | | | | | |
| | Activision Blizzard, Inc. | | | 13,400 | | | | 1,013,040 | |
| | Netflix, Inc.* | | | 15,600 | | | | 2,969,616 | |
| | Walt Disney Co. (The)* | | | 71,900 | | | | 8,026,197 | |
| | Warner Bros Discovery, Inc.* | | | 14,233 | | | | 258,329 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 12,267,182 | |
| | | |
| | | Equity Real Estate Investment Trusts(REITs) 2.1% | | | | | | | | |
| | Camden Property Trust | | | 9,300 | | | | 1,459,077 | |
| | Outfront Media, Inc. | | | 15,000 | | | | 384,000 | |
| | Piedmont Office Realty Trust, Inc. (Class A Stock) | | | 64,400 | | | | 1,036,840 | |
| | Prologis, Inc. | | | 29,200 | | | | 4,680,468 | |
| | Public Storage | | | 5,000 | | | | 1,857,500 | |
| | SBA Communications Corp. | | | 7,700 | | | | 2,672,747 | |
| | Simon Property Group, Inc. | | | 7,100 | | | | 837,800 | |
| | Weyerhaeuser Co. | | | 95,600 | | | | 3,940,632 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 16,869,064 | |
| | | |
| | | Food & StaplesRetailing 1.4% | | | | | | | | |
| | Albertson’s Cos., Inc. (Class A Stock) | | | 21,200 | | | | 663,136 | |
| | Costco Wholesale Corp. | | | 14,500 | | | | 7,709,940 | |
| | Walgreens Boots Alliance, Inc. | | | 6,300 | | | | 267,120 | |
| | Walmart, Inc. | | | 16,693 | | | | 2,553,862 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 11,194,058 | |
| | | |
| | | Food Products 1.8% | | | | | | | | |
| | Archer-Daniels-Midland Co. | | | 12,400 | | | | 1,110,544 | |
| | Bunge Ltd. | | | 23,800 | | | | 2,692,256 | |
| | Darling Ingredients, Inc.* | | | 10,200 | | | | 748,578 | |
| | Kraft Heinz Co. (The) | | | 80,500 | | | | 3,431,715 | |
See Notes to Financial Statements.
| | | | | | | | | | |
| | | |
| | Description | | Shares | | | Value | |
| | | |
| | COMMON STOCKS (Continued) | | | | | | | | |
| | | |
| | | Food Products (cont’d.) | | | | | | | | |
| | Sanderson Farms, Inc. | | | 5,000 | | | $ | 946,850 | |
| | Tyson Foods, Inc. (Class A Stock) | | | 60,800 | | | | 5,664,128 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 14,594,071 | |
| | | |
| | | Gas Utilities 0.0% | | | | | | | | |
| | UGI Corp. | | | 7,400 | | | | 253,820 | |
| | | |
| | | Health Care Equipment &Supplies 2.6% | | | | | | | | |
| | Abbott Laboratories | | | 61,700 | | | | 7,002,950 | |
| | Becton, Dickinson & Co. | | | 3,000 | | | | 741,570 | |
| | Boston Scientific Corp.* | | | 86,700 | | | | 3,650,937 | |
| | Edwards Lifesciences Corp.* | | | 27,700 | | | | 2,930,106 | |
| | Hologic, Inc.* | | | 25,000 | | | | 1,799,750 | |
| | Medtronic PLC | | | 43,700 | | | | 4,560,532 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 20,685,845 | |
| | | |
| | | Health Care Providers &Services 3.9% | | | | | | | | |
| | Anthem, Inc. | | | 7,600 | | | | 3,814,668 | |
| | Centene Corp.* | | | 46,200 | | | | 3,721,410 | |
| | Cigna Corp. | | | 12,900 | | | | 3,183,462 | |
| | CVS Health Corp. | | | 66,300 | | | | 6,373,419 | |
| | UnitedHealth Group, Inc. | | | 28,000 | | | | 14,239,400 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 31,332,359 | |
| | | |
| | | Hotels, Restaurants &Leisure 1.5% | | | | | | | | |
| | Golden Entertainment, Inc.* | | | 4,800 | | | | 230,208 | |
| | Hilton Worldwide Holdings, Inc.* | | | 12,600 | | | | 1,956,654 | |
| | McDonald’s Corp. | | | 14,100 | | | | 3,513,156 | |
| | SeaWorld Entertainment, Inc.* | | | 4,800 | | | | 323,712 | |
| | Starbucks Corp. | | | 54,300 | | | | 4,052,952 | |
| | Wyndham Hotels & Resorts, Inc. | | | 9,200 | | | | 809,232 | |
| | Yum! Brands, Inc. | | | 7,500 | | | | 877,575 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 11,763,489 | |
| | | |
| | | Household Durables 1.0% | | | | | | | | |
| | Lennar Corp. (Class A Stock) | | | 23,400 | | | | 1,789,866 | |
| | PulteGroup, Inc. | | | 36,000 | | | | 1,503,360 | |
| | Taylor Morrison Home Corp.* | | | 10,200 | | | | 267,138 | |
See Notes to Financial Statements.
| | | | |
| PGIM Quant Solutions Large-Cap Core Fund | | | 13 | |
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
| | | | | | | | | | |
| | | |
| | | Description | | Shares | | | Value | |
| | | |
| | COMMON STOCKS (Continued) | | | | | | | | |
| | | |
| | | Household Durables (cont’d.) | | | | | | | | |
| | Toll Brothers, Inc. | | | 75,000 | | | $ | 3,477,750 | |
| | Tri Pointe Homes, Inc.* | | | 32,900 | | | | 680,043 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 7,718,157 | |
| | | |
| | | Household Products 0.8% | | | | | | | | |
| | Kimberly-Clark Corp. | | | 2,600 | | | | 360,958 | |
| | Procter & Gamble Co. (The) | | | 36,486 | | | | 5,857,827 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 6,218,785 | |
| | |
| | | Independent Power & Renewable ElectricityProducers 0.7% | | | | | |
| | AES Corp. (The) | | | 186,500 | | | | 3,808,330 | |
| | Vistra Corp. | | | 84,600 | | | | 2,116,692 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 5,925,022 | |
| | | |
| | | Industrial Conglomerates 0.6% | | | | | | | | |
| | Honeywell International, Inc. | | | 23,000 | | | | 4,450,730 | |
| | | |
| | | Insurance 2.0% | | | | | | | | |
| | American International Group, Inc. | | | 53,600 | | | | 3,136,136 | |
| | Arch Capital Group Ltd.* | | | 8,400 | | | | 383,628 | |
| | Chubb Ltd. | | | 31,300 | | | | 6,461,885 | |
| | Kinsale Capital Group, Inc. | | | 2,000 | | | | 443,380 | |
| | Marsh & McLennan Cos., Inc. | | | 2,600 | | | | 420,420 | |
| | MetLife, Inc. | | | 67,440 | | | | 4,429,459 | |
| | Reinsurance Group of America, Inc. | | | 7,700 | | | | 826,364 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 16,101,272 | |
| | | |
| | | Interactive Media &Services 5.3% | | | | | | | | |
| | Alphabet, Inc. (Class A Stock)* | | | 7,594 | | | | 17,330,951 | |
| | Alphabet, Inc. (Class C Stock)* | | | 7,068 | | | | 16,251,664 | |
| | Meta Platforms, Inc. (Class A Stock)* | | | 45,180 | | | | 9,057,235 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 42,639,850 | |
| | | |
| | | Internet & Direct MarketingRetail 3.0% | | | | | | | | |
| | Amazon.com, Inc.* | | | 7,902 | | | | 19,641,448 | |
| | eBay, Inc. | | | 89,700 | | | | 4,657,224 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 24,298,672 | |
See Notes to Financial Statements.
| | | | | | | | | | |
| | | |
| | Description | | Shares | | | Value | |
| | | |
| | COMMON STOCKS (Continued) | | | | | | | | |
| | | |
| | | IT Services 5.1% | | | | | | | | |
| | Accenture PLC (Class A Stock) | | | 19,859 | | | $ | 5,964,849 | |
| | Automatic Data Processing, Inc. | | | 12,900 | | | | 2,814,522 | |
| | Cognizant Technology Solutions Corp. (Class A Stock) | | | 24,100 | | | | 1,949,690 | |
| | Concentrix Corp. | | | 2,500 | | | | 393,700 | |
| | Fidelity National Information Services, Inc. | | | 2,500 | | | | 247,875 | |
| | Fiserv, Inc.* | | | 19,700 | | | | 1,929,024 | |
| | Gartner, Inc.* | | | 11,600 | | | | 3,370,380 | |
| | Genpact Ltd. | | | 6,000 | | | | 241,620 | |
| | International Business Machines Corp. | | | 18,230 | | | | 2,410,189 | |
| | Mastercard, Inc. (Class A Stock) | | | 20,200 | | | | 7,340,276 | |
| | SS&C Technologies Holdings, Inc. | | | 34,400 | | | | 2,224,304 | |
| | Visa, Inc. (Class A Stock) | | | 58,125 | | | | 12,388,181 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 41,274,610 | |
| | | |
| | | Leisure Products 0.1% | | | | | | | | |
| | Smith & Wesson Brands, Inc. | | | 67,900 | | | | 932,267 | |
| | | |
| | | Life Sciences Tools &Services 1.6% | | | | | | | | |
| | Bio-Rad Laboratories, Inc. (Class A Stock)* | | | 1,400 | | | | 716,884 | |
| | Danaher Corp. | | | 14,400 | | | | 3,616,272 | |
| | IQVIA Holdings, Inc.* | | | 21,200 | | | | 4,621,388 | |
| | Thermo Fisher Scientific, Inc. | | | 7,414 | | | | 4,099,349 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 13,053,893 | |
| | | |
| | | Machinery 1.8% | | | | | | | | |
| | Altra Industrial Motion Corp. | | | 15,600 | | | | 608,400 | |
| | Caterpillar, Inc. | | | 16,300 | | | | 3,431,802 | |
| | Cummins, Inc. | | | 5,900 | | | | 1,116,221 | |
| | Hillenbrand, Inc. | | | 44,700 | | | | 1,824,654 | |
| | Mueller Industries, Inc. | | | 25,600 | | | | 1,386,240 | |
| | PACCAR, Inc. | | | 56,500 | | | | 4,692,325 | |
| | Parker-Hannifin Corp. | | | 4,700 | | | | 1,272,854 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 14,332,496 | |
| | | |
| | | Media 0.3% | | | | | | | | |
| | Comcast Corp. (Class A Stock) | | | 67,600 | | | | 2,687,776 | |
| | | |
| | | Metals & Mining 1.1% | | | | | | | | |
| | Freeport-McMoRan, Inc. | | | 136,600 | | | | 5,539,130 | |
| | Nucor Corp. | | | 5,100 | | | | 789,378 | |
See Notes to Financial Statements.
| | | | |
| PGIM Quant Solutions Large-Cap Core Fund | | | 15 | |
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
| | | | | | | | | | |
| | | |
| | | Description | | Shares | | | Value | |
| | | |
| | COMMON STOCKS (Continued) | | | | | | | | |
| | | |
| | | Metals & Mining (cont’d.) | | | | | | | | |
| | Reliance Steel & Aluminum Co. | | | 12,200 | | | $ | 2,418,650 | |
| | United States Steel Corp. | | | 11,600 | | | | 353,684 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 9,100,842 | |
| | | |
| | | Multiline Retail 0.9% | | | | | | | | |
| | Macy’s, Inc. | | | 44,100 | | | | 1,065,897 | |
| | Target Corp. | | | 24,900 | | | | 5,693,385 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 6,759,282 | |
| | | |
| | | Multi-Utilities 0.5% | | | | | | | | |
| | Dominion Energy, Inc. | | | 17,400 | | | | 1,420,536 | |
| | Public Service Enterprise Group, Inc. | | | 39,000 | | | | 2,716,740 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 4,137,276 | |
| | | |
| | | Oil, Gas & ConsumableFuels 4.6% | | | | | | | | |
| | APA Corp. | | | 10,700 | | | | 437,951 | |
| | Cheniere Energy, Inc. | | | 16,900 | | | | 2,295,189 | |
| | Chevron Corp. | | | 43,500 | | | | 6,815,145 | |
| | ConocoPhillips | | | 3,400 | | | | 324,768 | |
| | EOG Resources, Inc. | | | 59,700 | | | | 6,970,572 | |
| | Exxon Mobil Corp. | | | 166,200 | | | | 14,168,550 | |
| | Hess Corp. | | | 5,500 | | | | 566,885 | |
| | Marathon Petroleum Corp. | | | 11,500 | | | | 1,003,490 | |
| | Murphy Oil Corp. | | | 20,000 | | | | 761,600 | |
| | Occidental Petroleum Corp. | | | 32,200 | | | | 1,773,898 | |
| | PDC Energy, Inc. | | | 3,600 | | | | 251,064 | |
| | Valero Energy Corp. | | | 11,200 | | | | 1,248,576 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 36,617,688 | |
| | | |
| | | Pharmaceuticals 4.8% | | | | | | | | |
| | Bristol-Myers Squibb Co. | | | 61,000 | | | | 4,591,470 | |
| | Eli Lilly & Co. | | | 25,200 | | | | 7,361,676 | |
| | Johnson & Johnson | | | 58,658 | | | | 10,585,423 | |
| | Merck & Co., Inc. | | | 86,000 | | | | 7,627,340 | |
| | Pfizer, Inc. | | | 176,600 | | | | 8,665,762 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 38,831,671 | |
| | | |
| | | Professional Services 0.3% | | | | | | | | |
| | Korn Ferry | | | 39,000 | | | | 2,396,160 | |
See Notes to Financial Statements.
| | | | | | | | | | |
| | | |
| | | Description | | Shares | | | Value | |
| | | |
| | COMMON STOCKS (Continued) | | | | | | | | |
| | | |
| | | Real Estate Management &Development 0.3% | | | | | | | | |
| | CBRE Group, Inc. (Class A Stock)* | | | 26,600 | | | $ | 2,208,864 | |
| | Newmark Group, Inc. (Class A Stock) | | | 19,200 | | | | 233,280 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 2,442,144 | |
| | | |
| | | Road & Rail 0.2% | | | | | | | | |
| | J.B. Hunt Transport Services, Inc. | | | 1,400 | | | | 239,190 | |
| | Norfolk Southern Corp. | | | 1,600 | | | | 412,608 | |
| | Schneider National, Inc. (Class B Stock) | | | 17,500 | | | | 413,525 | |
| | Union Pacific Corp. | | | 1,300 | | | | 304,577 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 1,369,900 | |
| | | |
| | | Semiconductors & SemiconductorEquipment 6.0% | | | | | | | | |
| | Advanced Micro Devices, Inc.* | | | 12,000 | | | | 1,026,240 | |
| | Applied Materials, Inc. | | | 5,800 | | | | 640,030 | |
| | Broadcom, Inc. | | | 15,600 | | | | 8,648,484 | |
| | Intel Corp. | | | 140,841 | | | | 6,139,259 | |
| | KLA Corp. | | | 8,600 | | | | 2,745,636 | |
| | Microchip Technology, Inc. | | | 72,100 | | | | 4,700,920 | |
| | Micron Technology, Inc. | | | 34,400 | | | | 2,345,736 | |
| | NVIDIA Corp. | | | 37,000 | | | | 6,862,390 | |
| | NXP Semiconductors NV (China) | | | 13,400 | | | | 2,290,060 | |
| | ON Semiconductor Corp.* | | | 66,400 | | | | 3,460,104 | |
| | QUALCOMM, Inc. | | | 56,400 | | | | 7,878,516 | |
| | Texas Instruments, Inc. | | | 10,300 | | | | 1,753,575 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 48,490,950 | |
| | | |
| | | Software 9.2% | | | | | | | | |
| | Adobe, Inc.* | | | 12,583 | | | | 4,982,239 | |
| | Black Knight, Inc.* | | | 12,200 | | | | 802,638 | |
| | Fortinet, Inc.* | | | 8,600 | | | | 2,485,486 | |
| | Manhattan Associates, Inc.* | | | 3,000 | | | | 391,650 | |
| | Microsoft Corp. | | | 183,484 | | | | 50,920,480 | |
| | Oracle Corp. | | | 89,779 | | | | 6,589,778 | |
| | Paycom Software, Inc.* | | | 3,100 | | | | 872,557 | |
| | Roper Technologies, Inc. | | | 6,300 | | | | 2,960,496 | |
| | Synopsys, Inc.* | | | 11,700 | | | | 3,355,443 | |
| | Verint Systems, Inc.* | | | 14,400 | | | | 785,664 | |
| | | | | | | | | | |
| | | |
| | | | | | | | | 74,146,431 | |
| | | |
| | | Specialty Retail 1.4% | | | | | | | | |
| | AutoNation, Inc.* | | | 17,300 | | | | 2,005,243 | |
See Notes to Financial Statements.
| | | | |
| PGIM Quant Solutions Large-Cap Core Fund | | | 17 | |
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
| | | | | | | | | | | | | | | | | | |
| | | | | |
| | | Description | | | | | | | | Shares | | | Value | |
| | | | | |
| | COMMON STOCKS (Continued) | | | | | | | | | | | | | | | | |
| | | | | |
| | | Specialty Retail (cont’d.) | | | | | | | | | | | | | | | | |
| | AutoZone, Inc.* | | | | | | | | | | | 700 | | | $ | 1,368,829 | |
| | Group 1 Automotive, Inc. | | | | | | | | | | | 13,400 | | | | 2,333,476 | |
| | Home Depot, Inc. (The) | | | | | | | | | | | 10,200 | | | | 3,064,080 | |
| | Lowe’s Cos., Inc. | | | | | | | | | | | 2,400 | | | | 474,552 | |
| | O’Reilly Automotive, Inc.* | | | | | | | | | | | 1,100 | | | | 667,205 | |
| | Penske Automotive Group, Inc. | | | | | | | | | | | 2,700 | | | | 283,014 | |
| | Ulta Beauty, Inc.* | | | | | | | | | | | 1,700 | | | | 674,560 | |
| | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | 10,870,959 | |
| | | |
| | | Technology Hardware, Storage &Peripherals 6.4% | | | | | | | | | |
| | Apple, Inc. | | | | | | | | | | | 323,980 | | | | 51,075,447 | |
| | Dell Technologies, Inc. (Class C Stock) | | | | | | | | | | | 11,400 | | | | 535,914 | |
| | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | 51,611,361 | |
| | | | | |
| | | Textiles, Apparel & LuxuryGoods 0.1% | | | | | | | | | | | | | | | | |
| | PVH Corp. | | | | | | | | | | | 10,400 | | | | 756,912 | |
| | | | | |
| | | Tobacco 0.3% | | | | | | | | | | | | | | | | |
| | Philip Morris International, Inc. | | | | | | | | | | | 19,700 | | | | 1,970,000 | |
| | | | | |
| | | Trading Companies &Distributors 0.2% | | | | | | | | | | | | | | | | |
| | Boise Cascade Co. | | | | | | | | | | | 17,800 | | | | 1,345,324 | |
| | | | | |
| | | Wireless TelecommunicationServices 0.1% | | | | | | | | | | | | | | | | |
| | T-Mobile US, Inc.* | | | | | | | | | | | 6,800 | | | | 837,352 | |
| | | | | | | | | | | | | | | | | | |
| | | | | |
| | TOTAL LONG-TERM INVESTMENTS
(cost $639,945,345) | | | | | | | | | | | | | | | 790,937,531 | |
| | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | Interest Rate | | | Maturity Date | | | Principal
Amount (000)# | | | | |
| | | | | |
| | SHORT-TERM INVESTMENTS 1.6% | | | | | | | | | | | | | | | | |
| | | | | |
| | U.S. TREASURY OBLIGATION(k)(n) 0.1% | | | | | | | | | | | | | | | | |
| | U.S. Treasury Bills
(cost $999,435) | | | 0.443 | % | | | 06/16/22 | | | | 1,000 | | | | 999,443 | |
| | | | | | | | | | | | | | | | | | |
See Notes to Financial Statements.
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | | | | | | | Shares | | | Value | |
| | | | |
| UNAFFILIATED FUND 1.5% | | | | | | | | | | | | | | | | |
| Dreyfus Government CashManagement (Institutional Shares)
(cost $11,616,953) | | | | | | | | | | | 11,616,953 | | | $ | 11,616,953 | |
| | | | | | | | | | | | | | | | |
| | | | |
| TOTAL SHORT-TERM INVESTMENTS
(cost $12,616,388) | | | | | | | | | | | | | | | 12,616,396 | |
| | | | | | | | | | | | | | | | |
| | | | |
| TOTAL INVESTMENTS 100.0%
(cost $652,561,733) | | | | | | | | | | | | | | | 803,553,927 | |
| Other assets in excess of liabilities(z) 0.0% | | | | | | | | | | | | | | | 118,060 | |
| | | | | | | | | | | | | | | | |
| | | | |
| NET ASSETS 100.0% | | | | | | | | | | | | | | $ | 803,671,987 | |
| | | | | | | | | | | | | | | | |
Below is a list of the abbreviation(s) used in the semiannual report:
USD—US Dollar
LIBOR—London InterbankOffered Rate
OTC—Over-the-counter
REITs—Real Estate Investment Trust
S&P—Standard & Poor’s
| * | Non-income producing security. |
| # | Principal amount is shown in U.S. dollars unless otherwise stated. |
| (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. |
| (z) | Includes net unrealized appreciation/(depreciation) and/or market value of the below holdings which are excluded from theSchedule of Investments: |
Futures contracts outstanding at April 30, 2022:
| | | | | | | | | | | | | | |
| Number
of
Contracts | | Type | | Expiration Date | | Current
Notional
Amount | | Value /
Unrealized
Appreciation
(Depreciation) |
| | | |
| Long Position: | | | | | | | | | | | | |
| 53 | | S&P 500 E-Mini Index | | Jun. 2022 | | | | $10,937,875 | | | | | $(250,783) | |
| | | | | | | | | | | | | | |
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 derivativesare listed by broker as follows:
| | | | | | | | | | |
| Broker | | Cash and/or Foreign Currency | | Securities Market Value |
| | |
| Goldman Sachs & Co. LLC | | | | $— | | | | | $999,443 | |
| | | | | | | | | | |
See Notes to Financial Statements.
| | | | |
| PGIM Quant Solutions Large-Cap Core Fund | | | 19 | |
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Fair Value Measurements:
Various inputs are used in determining thevalue of the Fund’s investments. These inputs are summarized in the three broad levels listed below.
Level 1—unadjusted quoted pricesgenerally in active markets for identical securities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepaymentspeeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Boardapproved fair valuation procedures.
The following is a summary of the inputs used as of April 30, 2022 in valuing such portfolio securities:
| | | | | | | | | | | | | | | |
| | | Level 1 | | Level 2 | | Level 3 |
| Investments in Securities | | | | | | | | | | | | | | | |
| Assets | | | | | | |
| Long-Term Investments | | | | | | | | | | | | | | | |
| Common Stocks | | | | | | | | | | | | | | | |
| Aerospace & Defense | | | $ | 9,368,708 | | | | $ | — | | | | | $— | |
| Air Freight & Logistics | | | | 5,438,560 | | | | | — | | | | | — | |
| Airlines | | | | 1,639,443 | | | | | — | | | | | — | |
| Automobiles | | | | 24,663,496 | | | | | — | | | | | — | |
| Banks | | | | 29,204,260 | | | | | — | | | | | — | |
| Beverages | | | | 17,552,668 | | | | | — | | | | | — | |
| Biotechnology | | | | 14,644,836 | | | | | — | | | | | — | |
| Building Products | | | | 2,806,281 | | | | | — | | | | | — | |
| Capital Markets | | | | 21,033,056 | | | | | — | | | | | — | |
| Chemicals | | | | 14,810,594 | | | | | — | | | | | — | |
| Communications Equipment | | | | 1,796,684 | | | | | — | | | | | — | |
| Construction & Engineering | | | | 1,024,631 | | | | | — | | | | | — | |
| Construction Materials | | | | 2,552,724 | | | | | — | | | | | — | |
| Consumer Finance | | | | 8,248,607 | | | | | — | | | | | — | |
| Containers & Packaging | | | | 787,527 | | | | | — | | | | | — | |
| Distributors | | | | 1,075,550 | | | | | — | | | | | — | |
| Diversified Financial Services | | | | 8,966,280 | | | | | — | | | | | — | |
| Diversified Telecommunication Services | | | | 7,543,013 | | | | | — | | | | | — | |
| Electric Utilities | | | | 8,356,845 | | | | | — | | | | | — | |
| Electrical Equipment | | | | 10,400,168 | | | | | — | | | | | — | |
| Electronic Equipment, Instruments & Components | | | | 6,113,308 | | | | | — | | | | | — | |
| Energy Equipment & Services | | | | 2,632,622 | | | | | — | | | | | — | |
| Entertainment | | | | 12,267,182 | | | | | — | | | | | — | |
| Equity Real Estate Investment Trusts (REITs) | | | | 16,869,064 | | | | | — | | | | | — | |
| Food & Staples Retailing | | | | 11,194,058 | | | | | — | | | | | — | |
| Food Products | | | | 14,594,071 | | | | | — | | | | | — | |
| Gas Utilities | | | | 253,820 | | | | | — | | | | | — | |
| Health Care Equipment & Supplies | | | | 20,685,845 | | | | | — | | | | | — | |
| Health Care Providers & Services | | | | 31,332,359 | | | | | — | | | | | — | |
| Hotels, Restaurants & Leisure | | | | 11,763,489 | | | | | — | | | | | — | |
| Household Durables | | | | 7,718,157 | | | | | — | | | | | — | |
| Household Products | | | | 6,218,785 | | | | | — | | | | | — | |
See Notes to Financial Statements.
| | | | | | | | | | | | | | | |
| | | Level 1 | | Level 2 | | Level 3 |
| Investments in Securities (continued) | | | | | | | | | | | | | | | |
| Assets (continued) | | | | | | |
| Long-Term Investments (continued) | | | | | | | | | | | | | | | |
| Common Stocks (continued) | | | | | | | | | | | | | | | |
| Independent Power & Renewable Electricity Producers | | | $ | 5,925,022 | | | | $ | — | | | | | $— | |
| Industrial Conglomerates | | | | 4,450,730 | | | | | — | | | | | — | |
| Insurance | | | | 16,101,272 | | | | | — | | | | | — | |
| Interactive Media & Services | | | | 42,639,850 | | | | | — | | | | | — | |
| Internet & Direct Marketing Retail | | | | 24,298,672 | | | | | — | | | | | — | |
| IT Services | | | | 41,274,610 | | | | | — | | | | | — | |
| Leisure Products | | | | 932,267 | | | | | — | | | | | — | |
| Life Sciences Tools & Services | | | | 13,053,893 | | | | | — | | | | | — | |
| Machinery | | | | 14,332,496 | | | | | — | | | | | — | |
| Media | | | | 2,687,776 | | | | | — | | | | | — | |
| Metals & Mining | | | | 9,100,842 | | | | | — | | | | | — | |
| Multiline Retail | | | | 6,759,282 | | | | | — | | | | | — | |
| Multi-Utilities | | | | 4,137,276 | | | | | — | | | | | — | |
| Oil, Gas & Consumable Fuels | | | | 36,617,688 | | | | | — | | | | | — | |
| Pharmaceuticals | | | | 38,831,671 | | | | | — | | | | | — | |
| Professional Services | | | | 2,396,160 | | | | | — | | | | | — | |
| Real Estate Management & Development | | | | 2,442,144 | | | | | — | | | | | — | |
| Road & Rail | | | | 1,369,900 | | | | | — | | | | | — | |
| Semiconductors & Semiconductor Equipment | | | | 48,490,950 | | | | | — | | | | | — | |
| Software | | | | 74,146,431 | | | | | — | | | | | — | |
| Specialty Retail | | | | 10,870,959 | | | | | — | | | | | — | |
| Technology Hardware, Storage & Peripherals | | | | 51,611,361 | | | | | — | | | | | — | |
| Textiles, Apparel & Luxury Goods | | | | 756,912 | | | | | — | | | | | — | |
| Tobacco | | | | 1,970,000 | | | | | — | | | | | — | |
| Trading Companies & Distributors | | | | 1,345,324 | | | | | — | | | | | — | |
| Wireless Telecommunication Services | | | | 837,352 | | | | | — | | | | | — | |
| Short-Term Investments | | | | | | |
| U.S. Treasury Obligation | | | | — | | | | | 999,443 | | | | | — | |
| Unaffiliated Fund | | | | 11,616,953 | | | | | — | | | | | — | |
| | | | | | | | | | | | | | | |
| Total | | | $ | 802,554,484 | | | | $ | 999,443 | | | | | $— | |
| | | | | | | | | | | | | | | |
| Other FinancialInstruments* | | | | | | | | | | | | | | | |
| Liabilities | | | | | | | | | | | | | | | |
| Futures Contracts | | | $ | (250,783 | ) | | | $ | — | | | | | $— | |
| | | | | | | | | | | | | | | |
| * | Other financial instruments are derivative instruments not reflected in the Schedule of Investments, such as futures,forwards and centrally cleared swap contracts, which are recorded at the unrealized appreciation (depreciation) on the instrument, and OTC swap contracts which are recorded at fair value. |
See Notes to Financial Statements.
| | | | |
| PGIM Quant Solutions Large-Cap Core Fund | | | 21 | |
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Industry Classification:
The industry classification of investments andother assets in excess of liabilities shown as a percentage of net assets as of April 30, 2022 were as follows:
| | | | |
| Software | | | 9.2 | % |
| Technology Hardware, Storage & Peripherals | | | 6.4 | |
| Semiconductors & Semiconductor Equipment | | | 6.0 | |
| Interactive Media & Services | | | 5.3 | |
| IT Services | | | 5.1 | |
| Pharmaceuticals | | | 4.8 | |
| Oil, Gas & Consumable Fuels | | | 4.6 | |
| Health Care Providers & Services | | | 3.9 | |
| Banks | | | 3.6 | |
| Automobiles | | | 3.1 | |
| Internet & Direct Marketing Retail | | | 3.0 | |
| Capital Markets | | | 2.6 | |
| Health Care Equipment & Supplies | | | 2.6 | |
| Beverages | | | 2.2 | |
| Equity Real Estate Investment Trusts (REITs) | | | 2.1 | |
| Insurance | | | 2.0 | |
| Chemicals | | | 1.9 | |
| Biotechnology | | | 1.8 | |
| Food Products | | | 1.8 | |
| Machinery | | | 1.8 | |
| Life Sciences Tools & Services | | | 1.6 | |
| Entertainment | | | 1.5 | |
| Hotels, Restaurants & Leisure | | | 1.5 | |
| Unaffiliated Fund | | | 1.5 | |
| Food & Staples Retailing | | | 1.4 | |
| Specialty Retail | | | 1.4 | |
| Electrical Equipment | | | 1.3 | |
| Aerospace & Defense | | | 1.2 | |
| Metals & Mining | | | 1.1 | |
| Diversified Financial Services | | | 1.1 | |
| Electric Utilities | | | 1.0 | |
| Consumer Finance | | | 1.0 | |
| Household Durables | | | 1.0 | |
| Diversified Telecommunication Services | | | 0.9 | |
| Multiline Retail | | | 0.9 | |
| | | | |
| Household Products | | | 0.8 | % |
| Electronic Equipment, Instruments & Components | | | 0.8 | |
| Independent Power & Renewable Electricity Producers | | | 0.7 | |
| Air Freight & Logistics | | | 0.7 | |
| Industrial Conglomerates | | | 0.6 | |
| Multi-Utilities | | | 0.5 | |
| Building Products | | | 0.4 | |
| Media | | | 0.3 | |
| Energy Equipment & Services | | | 0.3 | |
| Construction Materials | | | 0.3 | |
| Real Estate Management & Development | | | 0.3 | |
| Professional Services | | | 0.3 | |
| Tobacco | | | 0.3 | |
| Communications Equipment | | | 0.2 | |
| Airlines | | | 0.2 | |
| Road & Rail | | | 0.2 | |
| Trading Companies & Distributors | | | 0.2 | |
| Distributors | | | 0.1 | |
| Construction & Engineering | | | 0.1 | |
| U.S. Treasury Obligation | | | 0.1 | |
| Leisure Products | | | 0.1 | |
| Wireless Telecommunication Services | | | 0.1 | |
| Containers & Packaging | | | 0.1 | |
| Textiles, Apparel & Luxury Goods | | | 0.1 | |
| Gas Utilities | | | 0.0 | * |
| | | | |
| | | 100.0 | |
| Other assets in excess of liabilities | | | 0.0 | * |
| | | | |
| |
| | | 100.0 | % |
| | | | |
Effects of Derivative Instruments on theFinancial Statements and Primary Underlying Risk Exposure:
The Fund invested in derivative instruments during the reporting period. The primary type of riskassociated with these derivative instruments is equity contracts 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’sfinancial position and financial performance as reflected in the Statement of Assets and Liabilities and Statement of Operations is presented in the summary below.
See Notes to Financial Statements.
Fair values of derivative instruments as of April 30, 2022 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 |
| | | | |
| Equity contracts | | — | | $— | | Due from/to broker-variation margin futures | | $250,783* |
| | | | | | | | |
| * | Includes cumulative appreciation (depreciation) as reported in the schedule of open futures and centrally cleared swapcontracts. Only unsettled variation margin receivable (payable) is reported within the Statement of Assets and Liabilities. |
The effects ofderivative instruments on the Statement of Operations for the six months ended April 30, 2022 are as follows:
| | | | | |
| Amount of Realized Gain (Loss) on Derivatives Recognized inIncome |
| Derivatives not accounted for as hedging instruments, carried at fair value | | Futures |
| Equity contracts | | | $ | (218,026 | ) |
| | | | | |
|
| Change in Unrealized Appreciation (Depreciation) onDerivatives Recognized in Income |
| Derivatives not accounted for as hedginginstruments, carried at fair value | | Futures |
| Equity contracts | | | $ | (825,957 | ) |
| | | | | |
For the six months ended April 30, 2022, the Fund’s average volume of derivative activities is as follows:
| | |
| Derivative Contract Type | | Average Volume of Derivative Activities* |
| |
| Futures Contracts - Long Positions(1) | | $12,669,046 |
| * | Average volume is based on average quarter end balances as noted for the six months ended April 30, 2022. |
| (1) | Notional Amount in USD. |
See Notes to Financial Statements.
| | | | |
| PGIM Quant Solutions Large-Cap Core Fund | | | 23 | |
Statement of Assets and Liabilities (unaudited)
asof April 30, 2022
| | | | |
| Assets | | | | |
| Unaffiliated investments (cost $652,561,733) | | $ | 803,553,927 | |
| Receivable for Fund shares sold | | | 2,100,423 | |
| Dividends and interest receivable | | | 563,658 | |
| Prepaid expenses and other assets | | | 42,925 | |
| | | | |
| Total Assets | | | 806,260,933 | |
| | | | |
| |
| Liabilities | | | | |
| Payable for Fund shares purchased | | | 1,735,197 | |
| Due to broker—variation margin futures | | | 413,400 | |
| Management fee payable | | | 214,577 | |
| Distribution fee payable | | | 118,055 | |
| Affiliated transfer agent fee payable | | | 80,196 | |
| Accrued expenses and other liabilities | | | 27,521 | |
| | | | |
| Total Liabilities | | | 2,588,946 | |
| | | | |
| |
| Net Assets | | $ | 803,671,987 | |
| | | | |
| |
| | | | | |
| Net assets were comprised of: | | | | |
| Shares of beneficial interest, at par | | $ | 47,269 | |
| Paid-in capital in excess of par | | | 626,357,167 | |
| Total distributable earnings (loss) | | | 177,267,551 | |
| | | | |
| |
| Net assets, April 30, 2022 | | $ | 803,671,987 | |
| | | | |
See Notes to Financial Statements.
| | | | |
| Class A | | | | |
| Net asset value and redemption price per share,
($463,243,593 ÷ 27,572,849 shares of beneficial interest issued andoutstanding) | | $ | 16.80 | |
| Maximum sales charge (5.50% of offering price) | | | 0.98 | |
| | | | |
| Maximum offering price to public | | $ | 17.78 | |
| | | | |
| |
| Class C | | | | |
| Net asset value, offering price and redemption price per share, ($18,746,293 ÷ 1,296,346 shares of beneficial interest issued and outstanding) | | $ | 14.46 | |
| | | | |
| |
| Class Z | | | | |
| Net asset value, offering price and redemption price per share, ($23,311,459 ÷ 1,336,895 shares of beneficial interest issued and outstanding) | | $ | 17.44 | |
| | | | |
| |
| Class R6 | | | | |
| Net asset value, offering price and redemption price per share, ($298,370,642 ÷ 17,062,989 shares of beneficial interest issued and outstanding) | | $ | 17.49 | |
| | | | |
See Notes to Financial Statements.
| | | | |
| PGIM Quant Solutions Large-Cap Core Fund | | | 25 | |
Statement of Operations (unaudited)
Six MonthsEnded April 30, 2022
| | | | |
| Net Investment Income (Loss) | | | | |
| Income | | | | |
| Unaffiliated dividend income (net of $3,904 foreign withholding tax) | | $ | 6,287,828 | |
| Affiliated dividend income | | | 2,828 | |
| Income from securities lending, net (including affiliated income of $2,468) | | | 2,633 | |
| Interest income | | | 703 | |
| | | | |
| Total income | | | 6,293,992 | |
| | | | |
| Expenses | | | | |
| Management fee | | | 1,457,778 | |
| Distribution fee(a) | | | 863,327 | |
| Transfer agent’s fees and expenses (including affiliated expense of $180,201)(a) | | | 322,612 | |
| Custodian and accounting fees | | | 41,089 | |
| Registration fees(a) | | | 28,409 | |
| Shareholders’ reports | | | 22,047 | |
| Audit fee | | | 12,075 | |
| Legal fees and expenses | | | 11,581 | |
| Trustees’ fees | | | 8,913 | |
| Miscellaneous | | | 24,802 | |
| | | | |
| Total expenses | | | 2,792,633 | |
| Less: Fee waiver and/or expense reimbursement(a) | | | (150,841 | ) |
| Distribution fee waiver(a) | | | (126,325 | ) |
| | | | |
| Net expenses | | | 2,515,467 | |
| | | | |
| Net investment income (loss) | | | 3,778,525 | |
| | | | |
| |
| Realized And Unrealized Gain (Loss) On Investments | | | | |
| Net realized gain (loss) on: | | | | |
| Investment transactions (including affiliated of $(5,638)) | | | 26,240,522 | |
| Futures transactions | | | (218,026 | ) |
| | | | |
| | | 26,022,496 | |
| | | | |
| Net change in unrealized appreciation (depreciation) on: | | | | |
| Investments | | | (86,756,197 | ) |
| Futures | | | (825,957 | ) |
| | | | |
| | | (87,582,154 | ) |
| | | | |
| Net gain (loss) on investment transactions | | | (61,559,658 | ) |
| | | | |
| Net Increase (Decrease) In Net Assets Resulting From Operations | | $ | (57,781,133 | ) |
| | | | |
| (a) | Class specific expenses and waivers were as follows: |
| | | | | | | | | | | | | | | | |
| | | Class A | | | Class C | | | Class Z | | | Class R6 | |
| Distribution fee | | | 757,948 | | | | 105,379 | | | | — | | | | — | |
| Transfer agent’s fees and expenses | | | 288,464 | | | | 16,318 | | | | 17,048 | | | | 782 | |
| Registration fees | | | 9,130 | | | | 6,051 | | | | 9,025 | | | | 4,203 | |
| Fee waiver and/or expense reimbursement | | | (79,043 | ) | | | (15,804 | ) | | | (12,490 | ) | | | (43,504 | ) |
| Distribution fee waiver | | | (126,325 | ) | | | — | | | | — | | | | — | |
See Notes to Financial Statements.
Statements of Changes in Net Assets (unaudited)
| | | | | | | | | | | | | | | | |
| | |
| | | Six Months Ended
April 30,2022 | | Year Ended
October 31, 2021 |
| | | | | | |
| Increase (Decrease) in Net Assets | | | | | | | | | | | | | | | | |
| Operations | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | | | $ | 3,778,525 | | | | | | | $ | 7,056,819 | | | |
| Net realized gain (loss) on investment transactions | | | | | 26,022,496 | | | | | | | | 112,391,771 | | | |
| Net change in unrealized appreciation (depreciation) on investments | | | | | (87,582,154 | ) | | | | | | | 133,980,627 | | | |
| | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from operations | | | | | (57,781,133 | ) | | | | | | | 253,429,217 | | | |
| | | | | | | | | | | | | | | | |
| | | | | | |
| Dividends and Distributions | | | | | | | | | | | | | | | | |
| Distributions from distributable earnings | | | | | | | | | | | | | | | | |
| Class A | | | | | (75,324,555 | ) | | | | | | | (9,498,862 | ) | | |
| Class C | | | | | (3,481,355 | ) | | | | | | | (464,608 | ) | | |
| Class Z | | | | | (3,670,638 | ) | | | | | | | (1,395,424 | ) | | |
| Class R6 | | | | | (37,719,399 | ) | | | | | | | (3,717,913 | ) | | |
| | | | | | | | | | | | | | | | |
| | | | | (120,195,947 | ) | | | | | | | (15,076,807 | ) | | |
| | | | | | | | | | | | | | | | |
| | | | | | |
| Fund share transactions (Net of share conversions) | | | | | | | | | | | | | | | | |
| Net proceeds from shares sold | | | | | 129,194,739 | | | | | | | | 187,786,089 | | | |
| Net asset value of shares issued in reinvestment of dividends and distributions | | | | | 119,012,363 | | | | | | | | 14,909,423 | | | |
| Cost of shares purchased | | | | | (132,707,186 | ) | | | | | | | (158,286,541 | ) | | |
| | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets from Fund share transactions | | | | | 115,499,916 | | | | | | | | 44,408,971 | | | |
| | | | | | | | | | | | | | | | |
| Total increase (decrease) | | | | | (62,477,164 | ) | | | | | | | 282,761,381 | | | |
| | | | | | |
| Net Assets: | | | | | | | | | | | | | | | | |
| Beginning of period | | | | | 866,149,151 | | | | | | | | 583,387,770 | | | |
| | | | | | | | | | | | | | | | |
| End of period | | | | $ | 803,671,987 | | | | | | | $ | 866,149,151 | | | |
| | | | | | | | | | | | | | | | |
See Notes to Financial Statements.
| | | | |
| PGIM Quant Solutions Large-Cap Core Fund | | | 27 | |
Financial Highlights (unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A Shares | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended April 30, 2022 | | | | |
YearEnded October 31, | |
| | | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Per Share OperatingPerformance(a): | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | | $21.09 | | | | | | $15.17 | | | | $15.17 | | | | $16.76 | | | | $18.37 | | | | $15.49 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | | 0.07 | | | | | | 0.16 | | | | 0.19 | | | | 0.18 | | | | 0.20 | | | | 0.19 | |
| Net realized and unrealized gain (loss) on investment transactions | | | (1.30 | ) | | | | | 6.14 | | | | 0.43 | | | | 1.19 | | | | 0.80 | | | | 3.51 | |
| Total from investment operations | | | (1.23 | ) | | | | | 6.30 | | | | 0.62 | | | | 1.37 | | | | 1.00 | | | | 3.70 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends from net investment income | | | (0.17 | ) | | | | | (0.19 | ) | | | (0.19 | ) | | | (0.22 | ) | | | (0.18 | ) | | | (0.15 | ) |
| Distributions from net realized gains | | | (2.89 | ) | | | | | (0.19 | ) | | | (0.43 | ) | | | (2.74 | ) | | | (2.43 | ) | | | (0.67 | ) |
| Total dividends and distributions | | | (3.06 | ) | | | | | (0.38 | ) | | | (0.62 | ) | | | (2.96 | ) | | | (2.61 | ) | | | (0.82 | ) |
| Net asset value, end of period | | | $16.80 | | | | | | $21.09 | | | | $15.17 | | | | $15.17 | | | | $16.76 | | | | $18.37 | |
| Total Return(b): | | | (7.03 | )% | | | | | 42.24 | % | | | 4.02 | % | | | 10.61 | % | | | 5.67 | % | | | 24.73 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ratios/Supplemental Data: | | | | |
| Net assets, end of period (000) | | | $463,244 | | | | | | $522,601 | | | | $382,165 | | | | $400,634 | | | | $105,855 | | | | $113,343 | |
| Average net assets (000) | | | $509,486 | | | | | | $475,322 | | | | $389,009 | | | | $302,864 | | | | $112,391 | | | | $101,852 | |
| Ratios to average net assets(c)(d): | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses after waivers and/or expense reimbursement | | | 0.72 | %(e) | | | | | 0.72 | % | | | 0.72 | % | | | 0.74 | % | | | 0.72 | % | | | 0.77 | % |
| Expenses before waivers and/or expense reimbursement | | | 0.80 | %(e) | | | | | 0.81 | % | | | 0.83 | % | | | 0.87 | % | | | 0.86 | % | | | 0.93 | % |
| Net investment income (loss) | | | 0.80 | %(e) | | | | | 0.84 | % | | | 1.26 | % | | | 1.27 | % | | | 1.14 | % | | | 1.13 | % |
| Portfolio turnover rate(f) | | | 49 | % | | | | | 101 | % | | | 92 | % | | | 88 | % | | | 95 | % | | | 89 | % |
| (a) | Calculated based on average shares outstanding during the period. |
| (b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share onthe first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are notannualized. |
| (c) | Does not include expenses of the underlying funds in which the Fund invests. |
| (d) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees,which are charged to their respective share class. |
| (f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard totransactions 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.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Six Months
Ended April 30, 2022 | | | | | |
Year Ended October 31, | |
| | | | | | | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Per Share OperatingPerformance(a): | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | | | | | | $18.52 | | | | | | | | $13.38 | | | | $13.46 | | | | $15.20 | | | | $16.89 | | | | $14.31 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | | | | | | 0.01 | | | | | | | | 0.02 | | | | 0.07 | | | | 0.08 | | | | 0.07 | | | | 0.06 | |
| Net realized and unrealized gain (loss) on investment transactions | | | | | | | (1.12 | ) | | | | | | | 5.42 | | | | 0.38 | | | | 1.03 | | | | 0.73 | | | | 3.24 | |
| Total from investment operations | | | | | | | (1.11 | ) | | | | | | | 5.44 | | | | 0.45 | | | | 1.11 | | | | 0.80 | | | | 3.30 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends from net investment income | | | | | | | (0.06 | ) | | | | | | | (0.11 | ) | | | (0.10 | ) | | | (0.11 | ) | | | (0.06 | ) | | | (0.05 | ) |
| Distributions from net realized gains | | | | | | | (2.89 | ) | | | | | | | (0.19 | ) | | | (0.43 | ) | | | (2.74 | ) | | | (2.43 | ) | | | (0.67 | ) |
| Total dividends and distributions | | | | | | | (2.95 | ) | | | | | | | (0.30 | ) | | | (0.53 | ) | | | (2.85 | ) | | | (2.49 | ) | | | (0.72 | ) |
| Net asset value, end of period | | | | | | | $14.46 | | | | | | | | $18.52 | | | | $13.38 | | | | $13.46 | | | | $15.20 | | | | $16.89 | |
| Total Return(b): | | | | | | | (7.37 | )% | | | | | | | 41.25 | % | | | 3.27 | % | | | 9.77 | % | | | 4.91 | % | | | 23.80 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ratios/Supplemental Data: | | | | | | | |
| Net assets, end of period (000) | | | | | | | $18,746 | | | | | | | | $22,453 | | | | $21,047 | | | | $27,333 | | | | $29,930 | | | | $31,518 | |
| Average net assets (000) | | | | | | | $21,250 | | | | | | | | $22,342 | | | | $24,287 | | | | $36,812 | | | | $31,783 | | | | $34,697 | |
| Ratios to average net assets(c)(d): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses after waivers and/or expense reimbursement | | | | | | | 1.44 | %(e) | | | | | | | 1.44 | % | | | 1.44 | % | | | 1.47 | % | | | 1.44 | % | | | 1.53 | % |
| Expenses before waivers and/or expense reimbursement | | | | | | | 1.59 | %(e) | | | | | | | 1.59 | % | | | 1.59 | % | | | 1.54 | % | | | 1.55 | % | | | 1.64 | % |
| Net investment income (loss) | | | | | | | 0.08 | %(e) | | | | | | | 0.14 | % | | | 0.56 | % | | | 0.59 | % | | | 0.43 | % | | | 0.40 | % |
| Portfolio turnover rate(f) | | | | | | | 49 | % | | | | | | | 101 | % | | | 92 | % | | | 88 | % | | | 95 | % | | | 89 | % |
| (a) | Calculated based on average shares outstanding during the period. |
| (b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share onthe first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are notannualized. |
| (c) | Does not include expenses of the underlying funds in which the Fund invests. |
| (d) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees,which are charged to their respective share class. |
| (f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard totransactions 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 Quant Solutions Large-Cap Core Fund | | | 29 | |
Financial Highlights (unaudited) (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class Z Shares | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Six Months
Ended April 30, 2022 | | | | | |
Year Ended October 31, | |
| | | | | | | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Per Share OperatingPerformance(a): | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | | | | | | $21.79 | | | | | | | | $15.67 | | | | $15.65 | | | | $17.20 | | | | $18.78 | | | | $15.83 | |
| Income (loss) from investment operations: |
| Net investment income (loss) | | | | | | | 0.10 | | | | | | | | 0.21 | | | | 0.23 | | | | 0.24 | | | | 0.25 | | | | 0.24 | |
| Net realized and unrealized gain (loss) on investment transactions | | | | | | | (1.35 | ) | | | | | | | 6.32 | | | | 0.44 | | | | 1.21 | | | | 0.82 | | | | 3.57 | |
| Total from investment operations | | | | | | | (1.25 | ) | | | | | | | 6.53 | | | | 0.67 | | | | 1.45 | | | | 1.07 | | | | 3.81 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends from net investment income | | | | | | | (0.21 | ) | | | | | | | (0.22 | ) | | | (0.22 | ) | | | (0.26 | ) | | | (0.22 | ) | | | (0.19 | ) |
| Distributions from net realized gains | | | | | | | (2.89 | ) | | | | | | | (0.19 | ) | | | (0.43 | ) | | | (2.74 | ) | | | (2.43 | ) | | | (0.67 | ) |
| Total dividends and distributions | | | | | | | (3.10 | ) | | | | | | | (0.41 | ) | | | (0.65 | ) | | | (3.00 | ) | | | (2.65 | ) | | | (0.86 | ) |
| Net asset value, end of period | | | | | | | $17.44 | | | | | | | | $21.79 | | | | $15.67 | | | | $15.65 | | | | $17.20 | | | | $18.78 | |
| Total Return(b): | | | | | | | (6.88 | )% | | | | | | | 42.44 | % | | | 4.27 | % | | | 10.91 | % | | | 5.98 | % | | | 24.93 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ratios/Supplemental Data: | | | | | | | |
| Net assets, end of period (000) | | | | | | | $23,311 | | | | | | | | $25,663 | | | | $47,730 | | | | $67,192 | | | | $61,857 | | | | $56,066 | |
| Average net assets (000) | | | | | | | $25,186 | | | | | | | | $60,616 | | | | $64,099 | | | | $65,923 | | | | $62,456 | | | | $54,787 | |
| Ratios to average net assets(c)(d): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses after waivers and/or expense reimbursement | | | | | | | 0.49 | %(e) | | | | | | | 0.49 | % | | | 0.48 | % | | | 0.48 | % | | | 0.46 | % | | | 0.54 | % |
| Expenses before waivers and/or expense reimbursement | | | | | | | 0.59 | %(e) | | | | | | | 0.55 | % | | | 0.55 | % | | | 0.54 | % | | | 0.55 | % | | | 0.64 | % |
| Net investment income (loss) | | | | | | | 1.03 | %(e) | | | | | | | 1.10 | % | | | 1.54 | % | | | 1.59 | % | | | 1.40 | % | | | 1.42 | % |
| Portfolio turnover rate(f) | | | | | | | 49 | % | | | | | | | 101 | % | | | 92 | % | | | 88 | % | | | 95 | % | | | 89 | % |
| (a) | Calculated based on average shares outstanding during the period. |
| (b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each periodreported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
| (c) | Does not include expenses of the underlying funds in which the Fund invests. |
| (d) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees,which are charged to their respective share class. |
| (f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard totransactions 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.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | Six Months
Ended
April 30, 2022 | | | | | | Year Ended October 31, | | | | | | December 28, 2016(a)
through
October 31, 2017 | | | | |
| | | | | | | | | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | | | | | |
| Per Share OperatingPerformance(b): | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | | | | | | | | $21.86 | | | | | | | | $15.70 | | | | $15.68 | | | | $17.23 | | | | $18.81 | | | | | | | | $16.06 | | | | | |
| Income (loss) from investment operations: | | | | | | | | | | | | | |
| Net investment income (loss) | | | | | | | | | 0.11 | | | | | | | | 0.23 | | | | 0.25 | | | | 0.26 | | | | 0.27 | | | | | | | | 0.21 | | | | | |
| Net realized and unrealized gain (loss) on investment transactions | | | | | | | | | (1.35 | ) | | | | | | | 6.36 | | | | 0.44 | | | | 1.21 | | | | 0.82 | | | | | | | | 2.54 | | | | | |
| Total from investment operations | | | | | | | | | (1.24 | ) | | | | | | | 6.59 | | | | 0.69 | | | | 1.47 | | | | 1.09 | | | | | | | | 2.75 | | | | | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends from net investment income | | | | | | | | | (0.24 | ) | | | | | | | (0.24 | ) | | | (0.24 | ) | | | (0.28 | ) | | | (0.24 | ) | | | | | | | - | | | | | |
| Distributions from net realized gains | | | | | | | | | (2.89 | ) | | | | | | | (0.19 | ) | | | (0.43 | ) | | | (2.74 | ) | | | (2.43 | ) | | | | | | | - | | | | | |
| Total dividends and distributions | | | | | | | | | (3.13 | ) | | | | | | | (0.43 | ) | | | (0.67 | ) | | | (3.02 | ) | | | (2.67 | ) | | | | | | | - | | | | | |
| Net asset value, end of period | | | | | | | | | $17.49 | | | | | | | | $21.86 | | | | $15.70 | | | | $15.68 | | | | $17.23 | | | | | | | | $18.81 | | | | | |
| Total Return(c): | | | | | | | | | (6.82 | )% | | | | | | | 42.79% | | | | 4.39% | | | | 11.05 | % | | | 6.10 | % | | | | | | | 17.12 | % | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | |
| Net assets, end of period (000) | | | | | | | | | $298,371 | | | | | | | | $295,432 | | | | $132,446 | | | | $90,722 | | | | $76,551 | | | | | | | | $58,304 | | | | | |
| Average net assets (000) | | | | | | | | | $283,997 | | | | | | | | $204,016 | | | | $105,498 | | | | $86,249 | | | | $71,390 | | | | | | | | $40,448 | | | | | |
| Ratios to average netassets(d)(e): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses after waivers and/or expense reimbursement | | | | | | | | | 0.35 | %(f) | | | | | | | 0.35 | % | | | 0.35 | % | | | 0.35 | % | | | 0.35 | % | | | | | | | 0.35 | %(f) | | | | |
| Expenses before waivers and/or expense reimbursement | | | | | | | | | 0.38 | %(f) | | | | | | | 0.38 | % | | | 0.40 | % | | | 0.41 | % | | | 0.44 | % | | | | | | | 0.47 | %(f) | | | | |
| Net investment income (loss) | | | | | | | | | 1.15 | %(f) | | | | | | | 1.17 | % | | | 1.60 | % | | | 1.72 | % | | | 1.51 | % | | | | | | | 1.44 | %(f) | | | | |
| Portfolio turnover rate(g) | | | | | | | | | 49 | % | | | | | | | 101 | % | | | 92 | % | | | 88 | % | | | 95 | % | | | | | | | 89 | % | | | | |
| (a) | Commencement of offering. |
| (b) | Calculated based on average shares outstanding during the period. |
| (c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each periodreported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
| (d) | Does not include expenses of the underlying funds in which the Fund invests. |
| (e) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees,which are charged to their respective share class. |
| (g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard totransactions 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 Quant Solutions Large-Cap Core Fund | | | 31 | |
Notes to Financial Statements (unaudited)
1. Organization
Prudential Investment Portfolios 9 (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 isorganized as a Delaware Statutory Trust. These financial statements relate only to the PGIM Quant Solutions Large-Cap Core Fund (formerly known as PGIM QMA Large-CapCore 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 theFund is to seek long-term growth of capital.
2. Accounting Policies
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 Easterntime) 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 quotationsare readily available. The RIC’s Board of Trustees (the “Board”) has adopted valuation procedures for security valuation under which fair valuation responsibilities have been delegated to PGIM Investments LLC (“PGIMInvestments” or the “Manager”). Pursuant to the Board’s delegation, the Manager has established a Valuation Committee responsible for supervising the fair valuation of portfolio securities and other assets and liabilities. Thevaluation 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 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. A record of the Valuation Committee’s actions is subject to theBoard’s review at its first quarterly meeting following the quarter in which such actions take place.
For the fiscal reportingperiod-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 weekendsand holidays). Because such foreign securities 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 theSchedule of Investments and referred to herein as the “fair value hierarchy” in accordance with FASB ASC Topic 820 - Fair Value Measurement.
Common orpreferred stocks, exchange-traded funds 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 securityprincipally 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 fairvalue hierarchy. In the event that no sale or official closing price on valuation date exists, these securities are generally valued at the mean between the last reported bid and ask prices, or at the last bid price in the absence of an ask price.These securities are classified as Level 2 in the fair value hierarchy.
Foreign equities traded on foreign securities exchanges are generally valued usingpricing 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 closingmarket 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 withexchange-traded common and preferred stock valuation policies discussed above.
Investments in open-end funds (other thanexchange-traded funds) are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net assetvalues on the date of valuation.
Securities and other assets that cannot be priced according to the methods described above are valued based on pricingmethodologies 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 resultin a significant change to a Level 3 security’s fair value measurement.
When determining the fair value of securities, some of the factors influencing thevaluation 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
| | | | |
| PGIM Quant Solutions Large-Cap Core Fund | | | 33 | |
Notes to Financial Statements (unaudited) (continued)
comparable securities; any available analyst media or other reports or information deemed reliable by the Manager regarding the issuer or the markets or industry in whichit 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.
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 fordelivery 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 forfinancial 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 invalue 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 therisk of imperfect correlation in movements in the price of futures contracts and the underlying hedged assets. Since futures contracts are exchange-traded, there is minimal counterparty credit risk to the Fund since the exchanges’ clearinghouseacts as counterparty to all exchange-traded futures and guarantees the futures contracts against default.
Master Netting Arrangements: The RIC, on behalf ofthe 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 nettingarrangement 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 theFund’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 allthe 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 reportingparty intends to set-off and the right of set-off is enforceable by law.
Securities Lending: The Fund lends its portfolio securities to banks and broker-dealers. The loans are secured bycollateral 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 thevalue of the collateral exceeds the value of the loaned securities. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the financial statements may reflect a collateral valuethat 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 theFund securities identical to the loaned securities. The remaining maturities of the securities lending transactions are considered overnight and continuous. Should the borrower of the securities fail financially, the Fund has the right to repurchasethe securities in the open market using the collateral.
The Fund recognizes income, net of any rebate and securities lending agent fees, for lending its securitiesin 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, whichare 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 onthe 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 fromsecurities lending are disclosed in the Statement of Operations.
Equity and Mortgage Real Estate Investment Trusts (collectively REITs): The Fund invested inREITs, 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 returnof 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 currencytransactions 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. Expenses arerecorded on an accrual basis, which may require the use of certain estimates by management that may differ from actual. Net investment income or loss (other than class specific expenses and waivers, which are allocated as noted below) and unrealizedand 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 tothe respective share classes. Such class specific expenses and waivers include distribution fees and distribution fee waivers,
| | | | |
| PGIM Quant Solutions Large-Cap Core Fund | | | 35 | |
Notes to Financial Statements (unaudited) (continued)
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 todistribute 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, netof reclaimable amounts, at the time the related income is earned.
Dividends and Distributions: Dividends and distributions to shareholders, which aredetermined 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 reclassifiedbetween 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, the Fund may make more than one distribution of short-term and/or long-term capital gainsduring a fiscal year. |
Estimates: The preparation of financial statements requires management to make estimates and assumptions that affectthe reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
3. Agreements
The RIC, on behalf of the Fund, has a management agreement with the Manager. Pursuant to this agreement, the Manager has responsibility for all investment advisoryservices and supervises the subadviser’s performance of such services.
The Manager has entered into a subadvisory agreement with PGIM Quantitative SolutionsLLC (“PGIM Quantitative Solutions” or the “subadviser”). The Manager pays for the services of PGIM Quantitative Solutions.
Fees payable under the management agreement are computed daily and paid monthly. For the reporting period endedApril 30, 2022, the contractual and effective management fee rates were as follows:
| | |
| | |
| Contractual Management Rate | | Effective Management Fee, before any waivers and/or expense reimbursements |
| 0.35% of average daily net assets up to $5 billion; | | 0.35% |
| 0.34% of average daily net assets over $5 billion. | | |
The Manager has contractually agreed, through February 28, 2023, to limit certain operating expenses and/or to limit total annualoperating expenses after fee waivers and/or expense reimbursements. This contractual waiver 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 Manageragrees 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 totalannual operating expenses for Class Z shares. Fees and/or expenses waived and/or reimbursed by the Manager may be recouped by the Manager within the same fiscal year during which such waiver and/or reimbursement is made if such recoupment canbe realized without exceeding the expense limit in effect at the time of the recoupment for that fiscal year. The expense limitations attributable to each class are as follows:
| | | | |
| | | |
| Class | | Fund Expense
Limitation* | | Class Expense
Limitation |
| A | | 0.35% | | 0.72% |
| C | | 0.35 | | 1.44 |
| Z | | 0.35 | | — |
| R6 | | 0.35 | | — |
*Expense limitation excludes distribution and service (12b-1) fees, shareholder service fee, andtransfer agency expenses (including sub-transfer agency and networking fees).
The RIC, on behalf of the Fund, has adistribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class A, Class C, Class Z and Class R6 shares of the Fund. The Fund compensates PIMS fordistributing and servicing the Fund’s Class A and Class C 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 hascontractually agreed through February 28, 2023 to limit such fees on certain classes based on the daily net assets. The distribution fees are accrued daily and payable monthly.
| | | | |
| PGIM Quant Solutions Large-Cap Core Fund | | | 37 | |
Notes to Financial Statements (unaudited) (continued)
The Fund’s annual gross and net distribution rate, where applicable, are as follows:
| | | | |
| | | |
| Class | | Gross Distribution Fee | | Net Distribution Fee |
| A | | 0.30% | | 0.25% |
| C | | 1.00 | | 1.00 |
| Z | | N/A | | N/A |
| | |
| R6 | | N/A | | N/A |
For the reporting period ended April 30, 2022, 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 turnpaid commissions to salespersons and incurred other distribution costs. The sales charges are as follows where applicable:
| | | | | | | | |
| | | |
| Class | | FESL | | | CDSC | |
| A | | $ | 115,218 | | | $ | — | |
| C | | | — | | | | 407 | |
PGIM Investments, 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’stransfer agent. Transfer agent’s fees and expenses in the Statement of Operations include certain out-of-pocket expenses paid tonon-affiliates, where applicable.
The Fund may invest its overnight sweep cash in the PGIM Core Ultra Short Bond Fund (the“Core Fund”), and its securities lending cash collateral in the PGIM Institutional Money Market Fund (the “Money Market Fund”), each a fund of Prudential Investment Portfolios 2, registered under the 1940 Act and managed by PGIMInvestments. PGIM Investments and/or its affiliates are paid fees or reimbursed for providing their services to the Core Fund and the Money Market Fund. In addition to the realized and unrealized gains on investments in the Core Fund and MoneyMarket Fund, earnings from such investments are disclosed on the Statement of Operations as “Affiliated dividend income” and “Affiliated income from securities lending, net”, respectively. Effective January 2022, the Fund changedits overnight cash sweep vehicle from the Core Fund to an unaffiliated money market fund.
The Fund may enter into certain securities purchase or sale transactionsunder 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 saletransactions 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 reporting period ended April 30, 2022, no 17a-7 transactions were entered into by the Fund.
5. Portfolio Securities
The aggregate cost of purchases andproceeds from sales of portfolio securities (excluding short-term investments and U.S. Government securities) for the reporting period ended April 30, 2022, were as follows:
| | |
| | |
| Cost of Purchases | | Proceeds from Sales |
$408,365,418 | | $410,694,132 |
A summary of the cost of purchases and proceeds from sales of shares of affiliated mutual funds for the reporting period endedApril 30, 2022, is presented as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Value,
Beginning
of
Period | | Cost of Purchases | | | Proceeds
from Sales | | | Change in Unrealized Gain (Loss) | | | Realized Gain (Loss) | | | Value, End of Period | | | Shares, End of Period | | | Income | |
| |
| Short-Term Investments -Affiliated Mutual Funds: | | | | | |
| | |
| PGIM Core Ultra Short Bond Fund(1)(wa) | | | | | | | | | |
| $15,957,883 | | $ | 30,591,188 | | | $ | 46,549,071 | | | | $— | | | | $ — | | | $ | — | | | | — | | | | $2,828 | |
| | |
| PGIM Institutional Money MarketFund(1)(b)(wa) | | | | | | | | | |
602,941 | | | 125,951,162 | | | | 126,548,465 | | | | — | | | | (5,638 | ) | | | — | | | | — | | | | 2,468 | (2) |
| $16,560,824 | | $ | 156,542,350 | | | $ | 173,097,536 | | | | $— | | | | $(5,638 | ) | | $ | — | | | | | | | | $5,296 | |
| (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 ofOperations. |
| (b) | Represents security, or portion thereof, purchased with cash collateral received for securities on loan and includesdividend reinvestment. |
| (wa) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Ultra Short Bond Fund and PGIMInstitutional Money Market Fund, if applicable. |
6. Tax Information
The United States federal income tax basis of the Fund’s investments and the net unrealized appreciation as of April 30, 2022 were as follows:
| | | | | | |
| | | | |
| Tax Basis | | Gross Unrealized Appreciation | | Gross Unrealized Depreciation | | Net Unrealized Appreciation |
| | | |
| $653,668,385 | | $187,251,247 | | $(37,616,488) | | $149,634,759 |
The GAAP basis may differ from tax basis due to certain tax-related adjustments.
| | | | |
| PGIM Quant Solutions Large-Cap Core Fund | | | 39 | |
Notes to Financial Statements (unaudited) (continued)
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 forincome tax is 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 upto the most recent fiscal year ended October 31, 2021 are subject to such review.
7. Capital and Ownership
The Fund offers Class A, Class C, Class Z and Class R6 shares . Class A shares are sold with a maximumfront-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 contingent deferred sales charge(“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 topurchase 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 eightyears (ten years prior to January 22, 2021) after purchase. 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 oftransactions in shares of beneficial interest, below.
The RIC has authorized an unlimited number of shares of beneficial interest of the Fund at $0.001 par valueper share, currently divided into four classes, designated Class A, Class C, Class Z and Class R6.
As of April 30, 2022, 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 | |
| | |
| A | | | 4,008 | | | | 0.1% | |
| | |
| C | | | 3 | | | | 0.1 | |
| R6 | | | 9,587,092 | | | | 56.2 | |
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 | | 1 | | 6.1% |
| | |
| Unaffiliated | | 2 | | 36.9 |
Transactions in shares of beneficial interest were as follows:
| | | | | | | | |
| | | |
| Share Class | | Shares | | | Amount | |
| | |
| Class A | | | | | | | | |
| Six months ended April 30,2022: | | | | | | | | |
| Shares sold | | | 454,261 | | | $ | 8,307,621 | |
| Shares issued in reinvestment of dividends anddistributions | | | 4,053,312 | | | | 74,256,672 | |
| Shares purchased | | | (1,732,653 | ) | | | (31,964,355 | ) |
| Net increase (decrease) in shares outstandingbefore conversion | | | 2,774,920 | | | | 50,599,938 | |
| Shares issued upon conversion from other shareclass(es) | | | 56,238 | | | | 1,063,459 | |
| Shares purchased upon conversion into other shareclass(es) | | | (40,111 | ) | | | (772,617 | ) |
| Net increase (decrease) in sharesoutstanding | | | 2,791,047 | | | $ | 50,890,780 | |
| | |
| Year ended October 31, 2021: | | | | | | | | |
| Shares sold | | | 2,091,107 | | | $ | 38,400,935 | |
| Shares issued in reinvestment of dividends anddistributions | | | 566,431 | | | | 9,351,778 | |
| Shares purchased | | | (3,160,671 | ) | | | (58,723,676 | ) |
| Net increase (decrease) in shares outstandingbefore conversion | | | (503,133 | ) | | | (10,970,963 | ) |
| Shares issued upon conversion from other shareclass(es) | | | 242,510 | | | | 4,439,967 | |
| Shares purchased upon conversion into other shareclass(es) | | | (151,501 | ) | | | (2,826,352 | ) |
| Net increase (decrease) in sharesoutstanding | | | (412,124 | ) | | $ | (9,357,348 | ) |
| | |
| Class C | | | | | | | | |
| | |
| Six months ended April 30, 2022: | | | | | | | | |
| Shares sold | | | 48,156 | | | $ | 768,244 | |
| Shares issued in reinvestment of dividends anddistributions | | | 218,899 | | | | 3,460,797 | |
| Shares purchased | | | (114,107 | ) | | | (1,830,735 | ) |
| Net increase (decrease) in shares outstandingbefore conversion | | | 152,948 | | | | 2,398,306 | |
| Shares purchased upon conversion into other shareclass(es) | | | (69,192 | ) | | | (1,134,155 | ) |
| Net increase (decrease) in sharesoutstanding | | | 83,756 | | | $ | 1,264,151 | |
| | |
| Year ended October 31, 2021: | | | | | | | | |
| Shares sold | | | 75,244 | | | $ | 1,234,291 | |
| Shares issued in reinvestment of dividends anddistributions | | | 31,819 | | | | 464,240 | |
| Shares purchased | | | (182,947 | ) | | | (2,971,760 | ) |
| Net increase (decrease) in shares outstandingbefore conversion | | | (75,884 | ) | | | (1,273,229 | ) |
| Shares purchased upon conversion into other shareclass(es) | | | (284,445 | ) | | | (4,601,367 | ) |
| Net increase (decrease) in sharesoutstanding | | | (360,329 | ) | | $ | (5,874,596 | ) |
| | | | |
| PGIM Quant Solutions Large-Cap Core Fund | | | 41 | |
Notes to Financial Statements (unaudited) (continued)
| | | | | | | | |
| | | |
| Share Class | | Shares | | | Amount | |
| | |
| Class Z | | | | | | | | |
| Six months ended April 30,2022: | | | | | | | | |
| Shares sold | | | 58,838 | | | $ | 1,128,829 | |
| Shares issued in reinvestment of dividends anddistributions | | | 188,283 | | | | 3,575,495 | |
| Shares purchased | | | (126,738 | ) | | | (2,420,981 | ) |
| Net increase (decrease) in shares outstandingbefore conversion | | | 120,383 | | | | 2,283,343 | |
| Shares issued upon conversion from other shareclass(es) | | | 38,930 | | | | 768,447 | |
| Net increase (decrease) in sharesoutstanding | | | 159,313 | | | $ | 3,051,790 | |
| | |
| Year ended October 31, 2021: | | | | | | | | |
| Shares sold | | | 2,430,335 | | | $ | 45,745,515 | |
| Shares issued in reinvestment of dividends anddistributions | | | 80,721 | | | | 1,375,492 | |
| Shares purchased | | | (824,320 | ) | | | (15,996,802 | ) |
| Net increase (decrease) in shares outstandingbefore conversion | | | 1,686,736 | | | | 31,124,205 | |
| Shares issued upon conversion from other shareclass(es) | | | 146,046 | | | | 2,809,035 | |
| Shares purchased upon conversion into other shareclass(es) | | | (3,701,600 | ) | | | (77,197,081 | ) |
| Net increase (decrease) in sharesoutstanding | | | (1,868,818 | ) | | $ | (43,263,841 | ) |
| | |
| Class R6 | | | | | | | | |
| Six months ended April 30,2022: | | | | | | | | |
| Shares sold | | | 6,333,338 | | | $ | 118,990,045 | |
| Shares issued in reinvestment of dividends anddistributions | | | 1,981,061 | | | | 37,719,399 | |
| Shares purchased | | | (4,768,891 | ) | | | (96,491,115 | ) |
| Net increase (decrease) in shares outstandingbefore conversion | | | 3,545,508 | | | | 60,218,329 | |
| Shares issued upon conversion from other shareclass(es) | | | 3,936 | | | | 85,627 | |
| Shares purchased upon conversion into other shareclass(es) | | | (577 | ) | | | (10,761 | ) |
| Net increase (decrease) in sharesoutstanding | | | 3,548,867 | | | $ | 60,293,195 | |
| | |
| Year ended October 31, 2021: | | | | | | | | |
| Shares sold | | | 5,207,231 | | | $ | 102,405,348 | |
| Shares issued in reinvestment of dividends anddistributions | | | 217,932 | | | | 3,717,913 | |
| Shares purchased | | | (4,048,357 | ) | | | (80,594,303 | ) |
| Net increase (decrease) in shares outstandingbefore conversion | | | 1,376,806 | | | | 25,528,958 | |
| Shares issued upon conversion from other shareclass(es) | | | 3,703,938 | | | | 77,392,006 | |
| Shares purchased upon conversion into other shareclass(es) | | | (758 | ) | | | (16,208 | ) |
| Net increase (decrease) in sharesoutstanding | | | 5,079,986 | | | $ | 102,904,756 | |
8. Borrowings
The RIC, on behalf ofthe 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 shareredemptions. The table below provides details of the SCA.
| | |
| | |
| | | SCA |
| Term of Commitment | | 10/1/2021 – 9/29/2022 |
| Total Commitment | | $ 1,200,000,000 |
| Annualized Commitment Fee on the UnusedPortion of the SCA | | 0.15% |
| Annualized Interest Rate onBorrowings | | 1.20% plus the higher of (1)
the effective federalfunds
rate, (2) the one-month
LIBOR rate or (3) zero
percent |
Certain affiliated registered investment companies that are parties to the SCA include portfolios that are subject to a predeterminedmathematical 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 utilizethe 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 theParticipating Funds in the SCA equitably.
The Fund utilized the SCA during the reporting period ended April 30, 2022. The average daily balance for the 6 daysthat the Fund had loans outstanding during the period was approximately $17,699,333, borrowed at a weighted average interest rate of 1.29%. The maximum loan outstanding amount during the period was $26,070,000. At April 30, 2022, the Fund didnot have an outstanding loan amount.
9. Risks of Investing in the Fund
The Fund’s 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 theFund’s Prospectus and Statement of Additional Information.
Active Trading Risk: The Fund actively and frequently trades its portfolio securities. Highportfolio turnover results in higher transaction costs, which can affect the Fund’s performance and have adverse tax consequences. In addition, high portfolio turnover may also mean that a proportionately greater amount of distributions toshareholders will be taxed as ordinary income rather than long-term capital gains compared to investment companies with lower portfolio turnover.
Blend StyleRisk: 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-averagefluctuations as a result of seeking high quality stocks with good future growth prospects. The portion of the Fund’s portfolio that makes investments pursuant to a value strategy may be subject to the risk that
| | | | |
| PGIM Quant Solutions Large-Cap Core Fund | | | 43 | |
Notes to Financial Statements (unaudited) (continued)
the market may not recognize a security’s intrinsic value for long periods of time or that a stock judged to be undervalued may actually be appropriately priced.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 ingeneral, 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.
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 tostimulate or stabilize economic growth or the functioning of the securities markets, may at times result in unusually high market volatility, which could negatively impact performance. Relatively reduced liquidity in credit and fixed income marketscould 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 reactdifferently to adverse issuer, market, regulatory, political and economic developments.
Increase in Expenses Risk: Your actual cost of investing in the Fundmay 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 andFund expense ratios are more likely to increase when markets are volatile. Active and frequent trading of Fund securities can increase expenses.
LargeCapitalization 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 exchangefor 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, includingthe Manager and its
affiliates, may from time to time own or control a substantial amount of the Fund’s shares. There is no requirementthat 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 oftime, 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 investmentstrategy. 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 makinginvestment 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 andother mutual funds with similar investment objectives.
Market Disruption and Geopolitical Risks: Market disruption can be caused by economic, financial orpolitical events and factors, including but not limited to, international wars or conflicts (including Russia’s military invasion of Ukraine), geopolitical developments (including trading and tariff arrangements, sanctions and cybersecurityattacks), 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 theFund. 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 forcertain 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 orwith 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 ofcertain securities held by the Fund could be significantly impacted, which could lead to such securities being valued at zero.
COVID-19 and the related governmental and public responses have had and may continue to have an impact on the Fund’sinvestments and net asset value and have led and may continue to lead to increased market volatility and the potential for illiquidity in certain classes of securities and sectors of the market. They have also had and may continue to result inperiods of business disruption, business closures, inability to obtain raw materials, supplies and component parts, and reduced or disrupted operations for the issuers in which
| | | | |
| PGIM Quant Solutions Large-Cap Core Fund | | | 45 | |
Notes to Financial Statements (unaudited) (continued)
the Fund invests. The occurrence, reoccurrence and pendency of public health epidemics could adversely affect the economies and financial markets either in specificcountries or worldwide.
Market Risk: Securities markets may be volatile and the market prices of the Fund’s securities may decline. Securities fluctuatein 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 orincomplete. 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 themanner 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 therisk 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.
10. Recent Regulatory Developments
On December 3, 2020,the SEC announced that it voted to adopt a new rule that establishes an updated regulatory framework for fund valuation practices (the “Rule”). The Rule, in part, provides (i) a framework for determining fair value in good faith and(ii) provides for a fund Board’s assignment of its responsibility for the execution of valuation-related activities to a fund’s investment adviser. Further, the SEC is rescinding previously issued guidance on related issues. The Ruletook effect on March 8, 2021, with a compliance date of September 8, 2022. Management is currently evaluating the Rule and its impact to the Fund.
Liquidity Risk Management Program (unaudited)
Consistent with Rule 22e-4 under the 1940 Act (the “Liquidity Rule”), the Fund has adopted and implemented a liquidityrisk management program (the “LRMP”). The Fund’s LRMP seeks to assess and manage the Fund’s liquidity risk, which is defined as the risk that the Fund is unable to meet investor redemption requests without significantly dilutingthe remaining investors’ interests in the Fund. The Board has approved PGIM Investments LLC (“PGIM Investments”), the Fund’s investment manager, to serve as the administrator of the Fund’s LRMP. As part of itsresponsibilities as administrator, PGIM Investments has retained a third party to perform certain functions, including providing market data and liquidity classification model information.
The Fund’s LRMP includes a number of processes designed to support the assessment and management of its liquidity risk. In particular, the Fund’s LRMP includesno less than annual assessments of factors that influence the Fund’s liquidity risk; no less than monthly classifications of the Fund’s investments into one of four liquidity classifications provided for in the Liquidity Rule; a 15% of netassets limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); establishment of a minimum percentage of the Fund’s assets to be invested in investments classified as “highly liquid” (asdefined under the Liquidity Rule) if the Fund does not invest primarily in highly liquid investments; and regular reporting to the Board.
At a meeting of the Boardon March 1-3, 2022, PGIM Investments provided a written report (“LRMP Report”) to the Board addressing the operation, adequacy, and effectiveness of the Fund’s LRMP, including any materialchanges to the LRMP for the period from January 1, 2021 through December 31, 2021 (“Reporting Period”). The LRMP Report concluded that the Fund’s LRMP was reasonably designed to assess and manage the Fund’s liquidityrisk and was adequately and effectively implemented during the Reporting Period. There were no material changes to the LRMP during the Reporting Period. The LRMP Report further concluded that the Fund’s investment strategies continue to beappropriate given the Fund’s status as an open-end fund.
There can be no assurance that the LRMP will achieve itsobjectives in the future. Additional information regarding risks of investing in the Fund, including liquidity risks presented by the Fund’s investment portfolio, is found in the Fund’s Prospectus and Statement of Additional Information.
| | | | |
| PGIM Quant Solutions Large-Cap Core Fund | | | 47 | |
| | | | |
| | | |
| ∎ MAIL | | ∎ TELEPHONE | | ∎ WEBSITE |
| 655 Broad Street Newark, NJ 07102 | | (800) 225-1852 | | pgim.com/investments |
|
| PROXY VOTING |
| The Board of Trustees of the Fund has delegated to the Fund’s subadviser theresponsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852 or by visiting the Securities and Exchange Commission’s website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website and on the Securities and Exchange Commission’s website. |
|
| TRUSTEES |
| Ellen S. Alberding ● Kevin J. Bannon ● Scott E. Benjamin ● Linda W. Bynoe ● Barry H. Evans ● Keith F. Hartstein ● Laurie Simon Hodrick ● Stuart S. Parker ● Brian K. Reid ● Grace C. Torres |
|
| OFFICERS |
| Stuart S. Parker, President ● Scott E. Benjamin, Vice President ● Christian J. Kelly,Treasurer and Principal Financial and Accounting Officer ● Claudia DiGiacomo, Chief Legal Officer ● Isabelle Sajous, Chief Compliance Officer ● Jonathan Corbett,Anti-Money Laundering Compliance Officer ● Andrew R. French, Secretary ● Melissa Gonzalez, Assistant Secretary ● Diana N. Huffman,Assistant Secretary ● Kelly A. Coyne, Assistant Secretary ● Patrick E. McGuinness, Assistant Secretary ● DebraRubano, Assistant Secretary ● Lana Lomuti, Assistant Treasurer ● Russ Shupak, Assistant Treasurer ●Elyse M. McLaughlin, Assistant Treasurer ● Deborah Conway, Assistant Treasurer |
| | | | |
| MANAGER | | PGIM Investments LLC | | 655 Broad Street Newark, NJ 07102 |
| |
| SUBADVISER | | PGIM Quantitative Solutions LLC | | Gateway Center Two 100 Mulberry Street Newark, NJ 07102 |
| |
| DISTRIBUTOR | | Prudential Investment Management Services LLC | | 655 Broad Street Newark, NJ 07102 |
| |
| CUSTODIAN | | The Bank of New York Mellon | | 240 Greenwich Street New York, NY 10286 |
| |
| TRANSFER AGENT | | Prudential Mutual Fund Services LLC | | PO Box 9658 Providence, RI 02940 |
| |
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM | | PricewaterhouseCoopers LLP | | 300 Madison Avenue New York, NY 10017 |
| |
| FUND COUNSEL | | Willkie Farr & Gallagher LLP | | 787 Seventh Avenue New York, NY 10019 |
| |
|
| An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summaryprospectus contain this and other information about the Fund. An investor may obtain the prospectus and summary prospectus by visiting our website at pgim.com/investments or by calling (800)225-1852. The prospectus and summary prospectus should be read carefully before investing. |
|
| E-DELIVERY |
| |
| To receive your mutual fund documents online, go topgim.com/investments/resource/edelivery and enroll. Instead of receiving printed documents by mail, you will receive notification via email when new materials are available. You can cancel your enrollment or change youremail address at any time by visiting the website address above. |
|
| SHAREHOLDER COMMUNICATIONS WITH TRUSTEES |
| |
| Shareholders can communicate directly with the Board of Trustees bywriting to the Chair of the Board, PGIM Quant Solutions Large-Cap Core Fund PGIM Investments, Attn: Board of Trustees, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Trustee by writing to that Trustee atthe same address. Communications are not screened before being delivered to the addressee. |
|
| AVAILABILITY OF PORTFOLIO HOLDINGS |
| |
| The Fund files its complete schedule of portfolio holdings with theSecurities and Exchange Commission on Form N-PORT. The Fund’s Form N-PORT filings are available on the Commission’s website at sec.gov. Form N-PORT is filed with the Commission quarterly, and each Fund’s full portfolio holdings as of the first and third fiscal quarter-ends will be made publicly available 60 days after the end of each quarter atsec.gov. |
Mutual Funds:
| | | | |
| ARE NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY | | MAY LOSE VALUE | | ARE NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR ANY BANK AFFILIATE |
PGIM QUANT SOLUTIONS LARGE-CAP CORE FUND
| | | | | | | | |
| SHARE CLASS | | A | | C | | Z | | R6 |
| NASDAQ | | PTMAX | | PTMCX | | PTEZX | | PTMQX |
| CUSIP | | 74441J100 | | 74441J308 | | 74441J407 | | 74441J688 |
| | | | |
| MF187E2 | | | | | | | | |
PGIM SELECT REAL ESTATE FUND
SEMIANNUAL REPORT
APRIL 30,2022
|
|
| To enroll in e-delivery, go to pgim.com/investments/resource/edelivery |
Table of Contents
This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
The information about the Fund’s portfolio holdings is for the period covered by this report and is subject to change thereafter.
The accompanying financial statements as of April 30, 2022 were not audited and, accordingly, no auditor’s opinion is expressed on them.
Mutual funds are distributed by Prudential Investment Management Services LLC, (PIMS), member SIPC. PGIM Real Estate is a unit of PGIM, Inc. (PGIM), a registeredinvestment adviser. PIMS and PGIM are Prudential Financial companies. © 2022 Prudential Financial, Inc. and its related entities. PGIM Real Estate, PGIM, and the PGIM logo are service marks of Prudential Financial, Inc. and its relatedentities, registered in many jurisdictions worldwide.
| | |
| 2 | | Visit our website at pgim.com/investments |
Letter from the President
| | |
 | | Dear Shareholder: We hope you find the semiannual report for the PGIM Select Real Estate Fund informative and useful. The report covers performance for thesix-month period ended April 30, 2022. Regardingyour investments with PGIM, we believe it is important to maintain a diversified portfolio of funds consistent with your tolerance for risk, time horizon, and financial goals. |
| Your financial advisor can help you create a diversified investmentplan that may include funds covering all the basic asset classes and that reflects your personal investor profile and risk tolerance. However, diversification and asset allocation strategies do not assure a profit or protect against loss indeclining markets. At PGIM Investments, we provide access to active investment strategiesacross the global markets in the pursuit of consistent outperformance for investors. PGIM is a top-10 investment manager globally with more than $1.5 trillion in assets under management. Our scale andinvestment expertise allow us to deliver a diversified suite of actively managed solutions across a broad spectrum of asset classes and investment styles. Thank you for choosing our family of funds. Sincerely, 
Stuart S. Parker, President PGIM Select Real Estate Fund June 15, 2022 |
| | | | |
| PGIM Select Real Estate Fund | | | 3 | |
Your Fund’s Performance
Performance dataquoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than theiroriginal cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website atpgim.com/investments or by calling (800) 225-1852.
| | | | | | | | |
| | |
| | | Total Returns as of 4/30/22 | | Average Annual Total Returns as of 4/30/22 |
| | | (without sales charges) | | (with sales charges) |
| | | Six Months* (%) | | One Year (%) | | Five Years (%) | | Since Inception (%) |
| | | | |
| Class A | | -4.10 | | 0.68 | | 9.95 | | 7.89 (08/01/2014) |
| | | | |
| Class C | | -4.43 | | 4.73 | | 10.37 | | 7.86 (08/01/2014) |
| | | | |
| Class Z | | -3.89 | | 6.91 | | 11.48 | | 8.96 (08/01/2014) |
| Class R6 | | -3.90 | | 6.91 | | 11.52 | | 8.97 (08/01/2014) |
|
| FTSE EPRA/NAREIT Developed Index |
| | | | |
| | -5.63 | | 1.68 | | 5.08 | | 4.44 |
|
| S&P 500 Index |
| | | | |
| | | -9.64 | | 0.21 | | 13.65 | | 12.44 |
*Not annualized
Since Inception returns are providedsince the Fund has less than 10 fiscal years of returns. Since Inception returns for the Indexes are measured from the closest month-end to the Fund’s inception date.
| | |
| 4 | | Visit our website at pgim.com/investments |
The returns in the tables do not reflect thededuction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. The average annual total returns take into account applicable sales charges, which are described for each share class in the tablebelow.
| | | | | | | | |
| | | Class A | | Class C | | Class Z | | Class R6 |
| | | | | |
| Maximum initial sales charge | | 5.50% of the public offering price | | None | | None | | None |
| | | | | |
| Contingent deferred sales charge (CDSC) (as a percentage of the lower of the original purchase price or the net asset value at redemption) | | 1.00% on sales of $1 million or more made within 12 months of purchase | | 1.00% on sales made within 12 months of purchase | | None | | None |
| | | | | |
| Annual distribution and service (12b-1) fees (shown as a percentage of average daily net assets) | | 0.30% (0.25% currently) | | 1.00% | | None | | None |
Benchmark Definitions
FTSE EPRA/NAREIT Developed Index—The Financial Times Stock Exchange European Public Real Estate Association/National Association of Real EstateInvestment Trusts (FTSE EPRA/NAREIT) Developed Index reflects the stock performance of companies engaged in specific aspects of the major real estate markets/regions of the world.
S&P 500 Index*—The S&P 500 Index is an unmanaged index of over 500 stocks of large US public companies. It gives a broad look at how stock prices inthe United States have performed.
*The S&P 500 Index (“Index”) is a product of S&P Dow Jones Indices LLC and/or its affiliates and has beenlicensed for use by PGIM, Inc. and/or its affiliates. Copyright © 2022 S&P Dow Jones Indices LLC, a division of S&P Global, Inc., and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part areprohibited without written permission of S&P Dow Jones Indices LLC. For more information on any of S&P Dow Jones Indices LLC’s indices please visit www.spdji.com. S&P® is aregistered trademark of S&P Global and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC.
Investors cannot invest directly in an index. The returns for the Indexes would be lower if they included the effects of sales charges, operating expenses of a mutualfund, or taxes that may be paid by an investor.
| | | | |
| PGIM Select Real Estate Fund | | | 5 | |
Your Fund’s Performance (continued)
Presentation of Fund Holdings as of 4/30/22
| | | | |
| | |
| Ten Largest Holdings | | Real Estate Sectors | | % of Net Assets |
| | |
| Welltower, Inc. | | Health Care REITs | | 7.8% |
| | |
| Equity Residential | | Residential REITs | | 7.7% |
| | |
| Life Storage, Inc. | | Specialized REITs | | 5.6% |
| | |
| Rexford Industrial Realty, Inc. | | Industrial REITs | | 4.9% |
| | |
| Camden Property Trust | | Residential REITs | | 4.7% |
| | |
| CubeSmart | | Specialized REITs | | 4.4% |
| | |
| Segro plc (United Kingdom) | | Industrial REITs | | 4.0% |
| | |
| Prologis, Inc. | | Industrial REITs | | 3.9% |
| | |
| Mitsui Fudosan Co. Ltd. (Japan) | | Diversified Real Estate Activities | | 3.1% |
| | |
| Capitaland Investment Ltd. (Singapore) | | Real Estate Operating Companies | | 2.8% |
Holdings reflect only long-term investments and are subject to change.
| | |
| 6 | | Visit our website at pgim.com/investments |
Fees and Expenses
As a shareholder ofthe Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemptions, as applicable, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses, as applicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs ofinvesting in other mutual funds.
The example is based on an investment of $1,000 held through the six-month period endedApril 30, 2022. The example is for illustrative purposes only; you should consult the Prospectus for information on initial and subsequent minimum investment requirements.
Actual Expenses
The first line for each share class in the table on thefollowing page provides information about actual account values and actual expenses. You may use the information on this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your accountvalue by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During the Six-MonthPeriod” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line for each share class in the table on the following page provides information about hypothetical account values and hypothetical expenses based on theFund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance orexpenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholderreports of the other funds.
The Fund’s transfer agent may charge additional fees to holders of certain accounts that are not included in the expenses shown inthe table on the following page. These fees apply to individual retirement accounts (IRAs) and Section 403(b) accounts. As of the close of the six-month period covered by the table, IRA fees included anannual maintenance fee of $15 per account (subject to a maximum annual maintenance fee of $25 for all accounts held by the same shareholder). Section 403(b) accounts are charged an annual $25 fiduciary maintenance fee. Some of the fees may varyin amount, or may be waived, based on your total account balance or the number of PGIM funds, including the Fund, that you own. You should consider the additional fees that were charged to your Fund account over thesix-month period when you estimate the total ongoing expenses paid over the period and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information
| | | | |
| PGIM Select Real Estate Fund | | | 7 | |
Fees and Expenses(continued)
provided in the expense table. Additional fees have the effect of reducing investment returns.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads).Therefore, the second line for each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, yourcosts would have been higher.
| | | | | | | | | | | | | | | | | | |
| | | | |
| PGIM Select Real Estate Fund | | Beginning
Account Value
November 1, 2021 | | | Ending
Account Value
April 30, 2022 | | | Annualized
Expense
Ratio Based on the
Six-Month Period | | | Expenses Paid
During the
Six-Month Period* | |
| | | | | |
| Class A | | Actual | | | $1,000.00 | | | | $ 959.00 | | | | 1.28% | | | | $ 6.22 | |
| | | | | |
| | Hypothetical | | | $1,000.00 | | | | $1,018.45 | | | | 1.28% | | | | $ 6.41 | |
| | | | | |
| Class C | | Actual | | | $1,000.00 | | | | $ 955.70 | | | | 2.05% | | | | $ 9.94 | |
| | | | | |
| | Hypothetical | | | $1,000.00 | | | | $1,014.63 | | | | 2.05% | | | | $10.24 | |
| | | | | |
| Class Z | | Actual | | | $1,000.00 | | | | $ 961.10 | | | | 0.96% | | | | $ 4.67 | |
| | | | | |
| | Hypothetical | | | $1,000.00 | | | | $1,020.03 | | | | 0.96% | | | | $ 4.81 | |
| | | | | |
| Class R6 | | Actual | | | $1,000.00 | | | | $ 961.00 | | | | 0.88% | | | | $ 4.28 | |
| | | | | |
| | | Hypothetical | | | $1,000.00 | | | | $1,020.43 | | | | 0.88% | | | | $ 4.41 | |
*Fund expenses (net of fee waivers or subsidies, if any) for each share class are equal to the annualized expense ratio for each shareclass (provided in the table), multiplied by the average account value over the period, multiplied by the 181 days in the six-month period ended April 30, 2022, and divided by the 365 days in theFund’s fiscal year ending October 31, 2022 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
| | |
| 8 | | Visit our website at pgim.com/investments |
Schedule of Investments (unaudited)
as ofApril 30, 2022
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
| LONG-TERM INVESTMENTS 99.4% | | | | | | | | |
| | |
| COMMON STOCKS | | | | | | | | |
| | |
| Diversified Real EstateActivities 4.1% | | | | | | | | |
| Mitsui Fudosan Co. Ltd. (Japan) | | | 583,098 | | | $ | 12,291,686 | |
| Sun Hung Kai Properties Ltd. (Hong Kong) | | | 335,229 | | | | 3,839,297 | |
| | | | | | | | |
| | |
| | | | | | | 16,130,983 | |
| | |
| DiversifiedREITs 3.8% | | | | | | | | |
| Daiwa House REIT Investment Corp. (Japan) | | | 3,627 | | | | 8,804,494 | |
| Essential Properties Realty Trust, Inc. | | | 255,967 | | | | 6,143,208 | |
| | | | | | | | |
| | |
| | | | | | | 14,947,702 | |
| | |
| Health CareREITs 7.8% | | | | | | | | |
| Welltower, Inc. | | | 340,970 | | | | 30,963,486 | |
| | |
| Hotel & ResortREITs 9.0% | | | | | | | | |
| Host Hotels & Resorts, Inc. | | | 417,988 | | | | 8,506,056 | |
| Invincible Investment Corp. (Japan) | | | 20,712 | | | | 6,760,626 | |
| Japan Hotel REIT Investment Corp. (Japan) | | | 10,744 | | | | 5,456,238 | |
| Park Hotels & Resorts, Inc. | | | 505,549 | | | | 9,964,371 | |
| Xenia Hotels & Resorts, Inc.* | | | 256,837 | | | | 4,954,386 | |
| | | | | | | | |
| | |
| | | | | | | 35,641,677 | |
| | |
| IndustrialREITs 15.8% | | | | | | | | |
| Goodman Group (Australia) | | | 296,001 | | | | 4,918,127 | |
| Prologis, Inc. | | | 95,572 | | | | 15,319,236 | |
| Rexford Industrial Realty, Inc. | | | 248,498 | | | | 19,392,784 | |
| Segro PLC (United Kingdom) | | | 932,251 | | | | 15,750,949 | |
| Summit Industrial Income REIT (Canada) | | | 476,558 | | | | 7,545,393 | |
| | | | | | | | |
| | |
| | | | | | | 62,926,489 | |
| | |
| Real Estate OperatingCompanies 10.1% | | | | | | | | |
| Capitaland Investment Ltd. (Singapore)* | | | 3,721,350 | | | | 11,300,421 | |
| Fastighets AB Balder (Sweden) (Class B Stock)* | | | 88,430 | | | | 4,391,184 | |
| Kojamo OYJ (Finland) | | | 177,670 | | | | 3,504,849 | |
| Pandox AB (Sweden)* | | | 415,063 | | | | 5,756,353 | |
| VGP NV (Belgium) | | | 34,060 | | | | 8,850,494 | |
| Wharf Real Estate Investment Co. Ltd. (Hong Kong) | | | 1,323,837 | | | | 6,232,816 | |
| | | | | | | | |
| | |
| | | | | | | 40,036,117 | |
See Notes to Financial Statements.
| | | | |
| PGIM Select Real Estate Fund | | | 9 | |
Schedule of Investments(unaudited) (continued)
as of April 30, 2022
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
| COMMON STOCKS (Continued) | | | | | | | | |
| | |
| ResidentialREITs 17.0% | | | | | | | | |
| American Homes 4 Rent (Class A Stock) | | | 216,152 | | | $ | 8,561,781 | |
| Camden Property Trust | | | 118,394 | | | | 18,574,835 | |
| Equity Residential | | | 375,315 | | | | 30,588,172 | |
| Ingenia Communities Group (Australia) | | | 1,762,774 | | | | 5,744,529 | |
| InterRent Real Estate Investment Trust (Canada) | | | 384,361 | | | | 4,221,643 | |
| | | | | | | | |
| | |
| | | | | | | 67,690,960 | |
| | |
| Retail REITs 13.9% | | | | | | | | |
| Acadia Realty Trust | | | 353,103 | | | | 7,386,915 | |
| Capital & Counties Properties PLC (United Kingdom) | | | 2,584,577 | | | | 5,418,718 | |
| Kimco Realty Corp. | | | 424,478 | | | | 10,752,028 | |
| Kite Realty Group Trust | | | 322,073 | | | | 7,182,228 | |
| Lendlease Global Commercial REIT (Singapore) | | | 9,074,158 | | | | 5,189,405 | |
| Macerich Co. (The) | | | 702,505 | | | | 8,816,438 | |
| NETSTREIT Corp. | | | 243,026 | | | | 5,254,222 | |
| Simon Property Group, Inc. | | | 44,089 | | | | 5,202,502 | |
| | | | | | | | |
| | |
| | | | | | | 55,202,456 | |
| | |
| SpecializedREITs 17.9% | | | | | | | | |
| Big Yellow Group PLC (United Kingdom) | | | 458,251 | | | | 8,333,869 | |
| CubeSmart | | | 363,958 | | | | 17,291,645 | |
| Digital Core REIT Management Pte Ltd. (Singapore)* | | | 4,065,870 | | | | 4,028,188 | |
| EPR Properties | | | 105,158 | | | | 5,522,898 | |
| Equinix, Inc. | | | 7,818 | | | | 5,621,767 | |
| Life Storage, Inc. | | | 166,522 | | | | 22,062,500 | |
| National Storage REIT (Australia) | | | 4,647,390 | | | | 8,409,061 | |
| | | | | | | | |
| | |
| | | | | | | 71,269,928 | |
| | | | | | | | |
| | |
| TOTAL LONG-TERM INVESTMENTS
(cost $377,847,898) | | | | | | | 394,809,798 | |
| | | | | | | | |
| | |
| SHORT-TERM INVESTMENT 1.5% | | | | | | | | |
| | |
| UNAFFILIATED FUND | | | | | | | | |
| Dreyfus Government Cash Management (Institutional Shares)
(cost$5,939,609) | | | 5,939,609 | | | | 5,939,609 | |
| | | | | | | | |
| | |
| TOTAL INVESTMENTS 100.9%
(cost$383,787,507) | | | | | | | 400,749,407 | |
| Liabilities in excess of other assets (0.9)% | | | | | | | (3,421,223 | ) |
| | | | | | | | |
| | |
| NET ASSETS 100.0% | | | | | | $ | 397,328,184 | |
| | | | | | | | |
See Notes to Financial Statements.
Below is a list of the abbreviation(s) used in thesemiannual report:
LIBOR—London Interbank Offered Rate
REITs—Real Estate Investment Trust
| * | Non-income producing security. |
Fair Value Measurements:
Various inputs are used in determining thevalue of the Fund’s investments. These inputs are summarized in the three broad levels listed below.
Level 1—unadjusted quoted pricesgenerally in active markets for identical securities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepaymentspeeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Boardapproved fair valuation procedures.
The following is a summary of the inputs used as of April 30, 2022 in valuing such portfolio securities:
| | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | |
| Investments in Securities | | | | | | | | | | | | |
| Assets | | | | | | | | | | | | |
| Long-Term Investments | | | | | | | | | | | | |
| Common Stocks | | | | | | | | | | | | |
| Australia | | $ | — | | | $ | 19,071,717 | | | $ | — | |
| Belgium | | | — | | | | 8,850,494 | | | | — | |
| Canada | | | 11,767,036 | | | | — | | | | — | |
| Finland | | | — | | | | 3,504,849 | | | | — | |
| Hong Kong | | | — | | | | 10,072,113 | | | | — | |
| Japan | | | — | | | | 33,313,044 | | | | — | |
| Singapore | | | — | | | | 20,518,014 | | | | — | |
| Sweden | | | — | | | | 10,147,537 | | | | — | |
| United Kingdom | | | — | | | | 29,503,536 | | | | — | |
| United States | | | 248,061,458 | | | | — | | | | — | |
| Short-Term Investment | | | | | | | | | | | | |
| Unaffiliated Fund | | | 5,939,609 | | | | — | | | | — | |
| | | | | | | | | | | | |
| Total | | $ | 265,768,103 | | | $ | 134,981,304 | | | $ | — | |
| | | | | | | | | | | | |
See Notes to Financial Statements.
| | | | |
| PGIM Select Real Estate Fund | | | 11 | |
Schedule of Investments(unaudited) (continued)
as of April 30, 2022
Sector Classification:
The sector classification of investments andliabilities in excess of other assets shown as a percentage of net assets as of April 30, 2022 were as follows:
| | | | |
| Specialized REITs | | | 17.9 | % |
| Residential REITs | | | 17.0 | |
| Industrial REITs | | | 15.8 | |
| Retail REITs | | | 13.9 | |
| Real Estate Operating Companies | | | 10.1 | |
| Hotel & Resort REITs | | | 9.0 | |
| Health Care REITs | | | 7.8 | |
| Diversified Real Estate Activities | | | 4.1 | |
| | | | |
| Diversified REITs | | | 3.8 | % |
| Unaffiliated Fund | | | 1.5 | |
| | | | |
| | | 100.9 | |
| Liabilities in excess of other assets | | | (0.9 | ) |
| | | | |
| |
| | | 100.0 | % |
| | | | |
See Notes to Financial Statements.
Statement of Assets and Liabilities (unaudited)
as ofApril 30, 2022
| | | | |
| Assets | | | | |
| Unaffiliated investments (cost $383,787,507) | | $ | 400,749,407 | |
| Receivable for Fund shares sold | | | 3,163,198 | |
| Receivable for investments sold | | | 814,247 | |
| Dividends receivable | | | 526,938 | |
| Tax reclaim receivable | | | 116,717 | |
| Prepaid expenses | | | 652 | |
| | | | |
| Total Assets | | | 405,371,159 | |
| | | | |
| |
| Liabilities | | | | |
| Payable for investments purchased | | | 5,048,198 | |
| Payable for Fund shares purchased | | | 2,680,358 | |
| Management fee payable | | | 269,695 | |
| Accrued expenses and other liabilities | | | 38,266 | |
| Distribution fee payable | | | 4,967 | |
| Affiliated transfer agent fee payable | | | 1,260 | |
| Trustees’ fees payable | | | 231 | |
| | | | |
| Total Liabilities | | | 8,042,975 | |
| | | | |
| |
| Net Assets | | $ | 397,328,184 | |
| | | | |
| |
| | | | | |
| Net assets were comprised of: | | | | |
| Shares of beneficial interest, at par | | $ | 27,862 | |
| Paid-in capital in excess of par | | | 383,390,886 | |
| Total distributable earnings (loss) | | | 13,909,436 | |
| | | | |
| Net assets, April 30, 2022 | | $ | 397,328,184 | |
| | | | |
See Notes to Financial Statements.
| | | | |
| PGIM Select Real Estate Fund | | | 13 | |
Statement of Assets and Liabilities (unaudited)
as ofApril 30, 2022
| | | | | | | | |
| Class A | | | | | | | | |
| | |
| Net asset value and redemption price per share, ($13,823,390 ÷ 966,662 shares of beneficial interest issued and outstanding) | | $ | 14.30 | | | | | |
| Maximum sales charge (5.50% of offering price) | | | 0.83 | | | | | |
| | | | | | | | |
| Maximum offering price to public | | $ | 15.13 | | | | | |
| | | | | | | | |
| | |
| Class C | | | | | | | | |
| | |
| Net asset value, offering price and redemption price per share, ($2,365,600 ÷ 167,760 shares of beneficial interest issued and outstanding) | | $ | 14.10 | | | | | |
| | | | | | | | |
| | |
| Class Z | | | | | | | | |
| | |
| Net asset value, offering price and redemption price per share, ($282,670,357 ÷ 19,734,003 shares of beneficial interest issued and outstanding) | | $ | 14.32 | | | | | |
| | | | | | | | |
| | |
| Class R6 | | | | | | | | |
| | |
| Net asset value, offering price and redemption price per share, ($98,468,837 ÷ 6,993,217 shares of beneficial interest issued and outstanding) | | $ | 14.08 | | | | | |
| | | | | | | | |
See Notes to Financial Statements.
Statement of Operations (unaudited)
Six MonthsEnded April 30, 2022
| | | | |
| Net Investment Income (Loss) | | | | |
| |
| Income | | | | |
| Unaffiliated dividend income (net of $115,648 foreign withholding tax) | | $ | 3,529,926 | |
| Affiliated dividend income | | | 1,075 | |
| Income from securities lending, net (including affiliated income of $161) | | | 434 | |
| | | | |
| Total income | | | 3,531,435 | |
| | | | |
| |
| Expenses | | | | |
| Management fee | | | 1,453,146 | |
| Distribution fee(a) | | | 27,582 | |
| Transfer agent’s fees and expenses (including affiliated expense of $4,551)(a) | | | 127,878 | |
| Custodian and accounting fees | | | 50,733 | |
| Registration fees(a) | | | 29,721 | |
| Audit fee | | | 15,868 | |
| Legal fees and expenses | | | 10,266 | |
| Shareholders’ reports | | | 6,920 | |
| Trustees’ fees | | | 6,332 | |
| Miscellaneous | | | 12,138 | |
| | | | |
| Total expenses | | | 1,740,584 | |
| Less: Fee waiver and/or expense reimbursement(a) | | | (3,516 | ) |
| Distribution fee waiver(a) | | | (2,758 | ) |
| | | | |
| Net expenses | | | 1,734,310 | |
| | | | |
| Net investment income (loss) | | | 1,797,125 | |
| | | | |
| |
| Realized And Unrealized Gain (Loss) On Investment And ForeignCurrency Transactions | | | | |
| |
| Net realized gain (loss) on: | | | | |
| Investment transactions (including affiliated of $(460)) | | | 404,418 | |
| Foreign currency transactions | | | (8,412 | ) |
| | | | |
| | | 396,006 | |
| | | | |
| Net change in unrealized appreciation (depreciation) on: | | | | |
| Investments | | | (17,687,966 | ) |
| Foreign currencies | | | (41,765 | ) |
| | | | |
| | | (17,729,731 | ) |
| | | | |
| Net gain (loss) on investment and foreign currency transactions | | | (17,333,725 | ) |
| | | | |
| Net Increase (Decrease) In Net Assets Resulting From Operations | | $ | (15,536,600 | ) |
| | | | |
| (a) | Class specific expenses and waivers were as follows: |
| | | | | | | | | | | | | | |
| | | Class A | | | Class C | | | Class Z | | | Class R6 |
| Distribution fee | | | 16,549 | | | | 11,033 | | | | — | | | — |
| Transfer agent’s fees and expenses | | | 4,307 | | | | 1,070 | | | | 122,235 | | | 266 |
| Registration fees | | | 5,270 | | | | 4,587 | | | | 10,927 | | | 8,937 |
| Fee waiver and/or expense reimbursement | | | — | | | | (3,516 | ) | | | — | | | — |
| Distribution fee waiver | | | (2,758 | ) | | | — | | | | — | | | — |
See Notes to Financial Statements.
| | | | |
| PGIM Select Real Estate Fund | | | 15 | |
Statements of Changes in Net Assets (unaudited)
| | | | | | | | |
| | |
| | | Six Months Ended
April 30, 2022 | | | Year Ended
October 31, 2021 | |
| | |
| Increase (Decrease) in Net Assets | | | | | | | | |
| Operations | | | | | | | | |
| Net investment income (loss) | | | $ 1,797,125 | | | | $ 1,813,565 | |
| Net realized gain (loss) on investment and foreign currency transactions | | | 396,006 | | | | 14,087,807 | |
| Net change in unrealized appreciation (depreciation) on investments and foreign currencies | | | (17,729,731 | ) | | | 32,748,400 | |
| | | | | | | | |
| Net increase (decrease) in net assets resulting from operations | | | (15,536,600 | ) | | | 48,649,772 | |
| | | | | | | | |
| | |
| Dividends and Distributions | | | | | | | | |
| Distributions from distributable earnings | | | | | | | | |
| Class A | | | (351,994 | ) | | | (70,197 | ) |
| Class C | | | (89,176 | ) | | | (5,910 | ) |
| Class Z | | | (9,874,590 | ) | | | (1,699,095 | ) |
| Class R6 | | | (4,513,932 | ) | | | (918,302 | ) |
| | | | | | | | |
| | | (14,829,692 | ) | | | (2,693,504 | ) |
| | | | | | | | |
| | |
| Fund share transactions (Net of share conversions) | | | | | | | | |
| Net proceeds from shares sold | | | 141,648,696 | | | | 269,891,981 | |
| Net asset value of shares issued in reinvestment of dividends and distributions | | | 14,822,587 | | | | 2,689,833 | |
| Cost of shares purchased | | | (57,284,202 | ) | | | (39,255,864 | ) |
| | | | | | | | |
| Net increase (decrease) in net assets from Fund share transactions | | | 99,187,081 | | | | 233,325,950 | |
| | | | | | | | |
| Total increase (decrease) | | | 68,820,789 | | | | 279,282,218 | |
| | |
| Net Assets: | | | | | | | | |
| Beginning of period | | | 328,507,395 | | | | 49,225,177 | |
| | | | | | | | |
| End of period | | | $397,328,184 | | | | $328,507,395 | |
| | | | | | | | |
See Notes to Financial Statements.
Financial Highlights (unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Six Months
Ended
April 30, | | | | | | Year Ended October 31, | |
| | | | | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | | | | | | $15.54 | | | | | | | | $11.48 | | | | $13.18 | | | | $10.33 | | | | $10.54 | | | | $10.00 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | | | | | | 0.05 | | | | | | | | 0.10 | | | | 0.15 | | | | 0.16 | | | | 0.12 | | | | 0.12 | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | | | | | (0.66 | ) | | | | | | | 4.18 | | | | (1.16 | ) | | | 3.10 | | | | (0.08 | ) | | | 0.76 | |
| Total from investment operations | | | | | | | (0.61 | ) | | | | | | | 4.28 | | | | (1.01 | ) | | | 3.26 | | | | 0.04 | | | | 0.88 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends from net investment income | | | | | | | (0.17 | ) | | | | | | | (0.22 | ) | | | (0.43 | ) | | | (0.21 | ) | | | (0.25 | ) | | | (0.11 | ) |
| Distributions from net realized gains | | | | | | | (0.46 | ) | | | | | | | - | | | | (0.26 | ) | | | (0.20 | ) | | | - | | | | (0.23 | ) |
| Total dividends and distributions | | | | | | | (0.63 | ) | | | | | | | (0.22 | ) | | | (0.69 | ) | | | (0.41 | ) | | | (0.25 | ) | | | (0.34 | ) |
| Net asset value, end of period | | | | | | | $14.30 | | | | | | | | $15.54 | | | | $11.48 | | | | $13.18 | | | | $10.33 | | | | $10.54 | |
| Total Return(b): | | | | | | | (4.10 | )% | | | | | | | 37.61 | % | | | (7.90 | )% | | | 32.64 | % | | | 0.37 | % | | | 9.08 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ratios/Supplemental Data: | | | | |
| Net assets, end of period (000) | | | | | | | $13,823 | | | | | | | | $6,733 | | | | $3,878 | | | | $4,447 | | | | $2,612 | | | | $256 | |
| Average net assets (000) | | | | | | | $11,124 | | | | | | | | $4,803 | | | | $4,534 | | | | $3,205 | | | | $1,645 | | | | $242 | |
| Ratios to average net assets(c)(d): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses after waivers and/or expense reimbursement | | | | | | | 1.28 | %(e) | | | | | | | 1.30 | % | | | 1.30 | % | | | 1.30 | % | | | 1.30 | % | | | 1.30 | % |
| Expenses before waivers and/or expense reimbursement | | | | | | | 1.33 | %(e) | | | | | | | 1.57 | % | | | 2.11 | % | | | 3.04 | % | | | 4.02 | % | | | 4.63 | % |
| Net investment income (loss) | | | | | | | 0.72 | %(e) | | | | | | | 0.74 | % | | | 1.26 | % | | | 1.36 | % | | | 1.14 | % | | | 1.15 | % |
| Portfolio turnover rate(f) | | | | | | | 60 | % | | | | | | | 165 | % | | | 313 | % | | | 242 | % | | | 202 | % | | | 142 | % |
| (a) | Calculated based on average shares outstanding during the period. |
| (b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share onthe first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are notannualized. |
| (c) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees,which are charged to their respective share class. |
| (d) | 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 totransactions 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 Select Real Estate Fund | | | 17 | |
Financial Highlights (unaudited) (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Six Months
Ended
April 30, | | | | | | Year Ended October 31, | |
| | | | | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | | | | | | $15.33 | | | | | | | | $11.35 | | | | $13.03 | | | | $10.23 | | | | $10.44 | | | | $9.94 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | | | | | | (0.01 | )(b) | | | | | | | (0.01 | )(b) | | | 0.06 | | | | 0.06 | | | | 0.09 | | | | 0.04 | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | | | | | (0.64 | ) | | | | | | | 4.12 | | | | (1.13 | ) | | | 3.08 | | | | (0.12 | ) | | | 0.75 | |
| Total from investment operations | | | | | | | (0.65 | ) | | | | | | | 4.11 | | | | (1.07 | ) | | | 3.14 | | | | (0.03 | ) | | | 0.79 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends from net investment income | | | | | | | (0.12 | ) | | | | | | | (0.13 | ) | | | (0.35 | ) | | | (0.14 | ) | | | (0.18 | ) | | | (0.06 | ) |
| Distributions from net realized gains | | | | | | | (0.46 | ) | | | | | | | - | | | | (0.26 | ) | | | (0.20 | ) | | | - | | | | (0.23 | ) |
| Total dividends and distributions | | | | | | | (0.58 | ) | | | | | | | (0.13 | ) | | | (0.61 | ) | | | (0.34 | ) | | | (0.18 | ) | | | (0.29 | ) |
| Net asset value, end of period | | | | | | | $14.10 | | | | | | | | $15.33 | | | | $11.35 | | | | $13.03 | | | | $10.23 | | | | $10.44 | |
| Total Return(c): | | | | | | | (4.43 | )% | | | | | | | 36.64 | % | | | (8.60 | )% | | | 31.59 | % | | | (0.34 | )% | | | 8.11 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ratios/Supplemental Data: | | | | |
| Net assets, end of period (000) | | | | | | | $2,366 | | | | | | | | $1,636 | | | | $605 | | | | $351 | | | | $56 | | | | $69 | |
| Average net assets (000) | | | | | | | $2,225 | | | | | | | | $1,021 | | | | $532 | | | | $148 | | | | $64 | | | | $70 | |
| Ratios to average net assets(d)(e): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses after waivers and/or expense reimbursement | | | | | | | 2.05 | %(f) | | | | | | | 2.05 | % | | | 2.05 | % | | | 2.05 | % | | | 2.05 | % | | | 2.05 | % |
| Expenses before waivers and/or expense reimbursement | | | | | | | 2.37 | %(f) | | | | | | | 2.95 | % | | | 5.31 | % | | | 11.73 | % | | | 29.08 | % | | | 5.33 | % |
| Net investment income (loss) | | | | | | | (0.10 | )%(f) | | | | | | | (0.06 | )% | | | 0.55 | % | | | 0.54 | % | | | 0.91 | % | | | 0.36 | % |
| Portfolio turnover rate(g) | | | | | | | 60 | % | | | | | | | 165 | % | | | 313 | % | | | 242 | % | | | 202 | % | | | 142 | % |
| (a) | Calculated based on average shares outstanding during the period. |
| (b) | The per share amount of net investment income (loss) does not directly correlate to the amounts reported in the Statementof Operations due to class specific expenses. |
| (c) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share onthe first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are notannualized. |
| (d) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees,which are charged to their respective share class. |
| (e) | Does not include expenses of the underlying funds in which the Fund invests. |
| (g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard totransactions 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.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class Z Shares | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Six Months
Ended
April 30, | | | | | | Year Ended October 31, | |
| | | | | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | | | | | | $15.56 | | | | | | | | $11.49 | | | | $13.20 | | | | $10.34 | | | | $10.56 | | | | $10.02 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | | | | | | 0.07 | | | | | | | | 0.13 | | | | 0.16 | | | | 0.19 | | | | 0.22 | | | | 0.15 | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | | | | | (0.66 | ) | | | | | | | 4.19 | | | | (1.15 | ) | | | 3.11 | | | | (0.16 | ) | | | 0.76 | |
| Total from investment operations | | | | | | | (0.59 | ) | | | | | | | 4.32 | | | | (0.99 | ) | | | 3.30 | | | | 0.06 | | | | 0.91 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends from net investment income | | | | | | | (0.19 | ) | | | | | | | (0.25 | ) | | | (0.46 | ) | | | (0.24 | ) | | | (0.28 | ) | | | (0.14 | ) |
| Distributions from net realized gains | | | | | | | (0.46 | ) | | | | | | | - | | | | (0.26 | ) | | | (0.20 | ) | | | - | | | | (0.23 | ) |
| Total dividends and distributions | | | | | | | (0.65 | ) | | | | | | | (0.25 | ) | | | (0.72 | ) | | | (0.44 | ) | | | (0.28 | ) | | | (0.37 | ) |
| Net asset value, end of period | | | | | | | $14.32 | | | | | | | | $15.56 | | | | $11.49 | | | | $13.20 | | | | $10.34 | | | | $10.56 | |
| Total Return(b): | | | | | | | (3.89 | )% | | | | | | | 38.04 | % | | | (7.73 | )% | | | 33.02 | % | | | 0.51 | % | | | 9.32 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ratios/Supplemental Data: | | | | |
| Net assets, end of period (000) | | | | | | | $282,670 | | | | | | | | $226,286 | | | | $29,056 | | | | $6,366 | | | | $65 | | | | $154 | |
| Average net assets (000) | | | | | | | $254,369 | | | | | | | | $126,992 | | | | $14,227 | | | | $1,621 | | | | $145 | | | | $148 | |
| Ratios to average net assets(c)(d): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses after waivers and/or expense reimbursement | | | | | | | 0.96 | %(e) | | | | | | | 1.04 | % | | | 1.05 | % | | | 1.05 | % | | | 1.05 | % | | | 1.05 | % |
| Expenses before waivers and/or expense reimbursement | | | | | | | 0.96 | %(e) | | | | | | | 1.04 | % | | | 1.61 | % | | | 2.85 | % | | | 14.17 | % | | | 4.35 | % |
| Net investment income (loss) | | | | | | | 0.98 | %(e) | | | | | | | 0.92 | % | | | 1.40 | % | | | 1.48 | % | | | 2.07 | % | | | 1.43 | % |
| Portfolio turnover rate(f) | | | | | | | 60 | % | | | | | | | 165 | % | | | 313 | % | | | 242 | % | | | 202 | % | | | 142 | % |
| (a) | Calculated based on average shares outstanding during the period. |
| (b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each periodreported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
| (c) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees,which are charged to their respective share class. |
| (d) | 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 totransactions 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 Select Real Estate Fund | | | 19 | |
Financial Highlights(unaudited) (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Six Months
Ended
April 30, | | | | | | Year Ended October 31, | |
| | | | | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | | | | | | $15.31 | | | | | | | | $11.31 | | | | $13.00 | | | | $10.19 | | | | $10.40 | | | | $9.88 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | | | | | | 0.08 | | | | | | | | 0.15 | | | | 0.18 | | | | 0.18 | | | | 0.20 | | | | 0.14 | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | | | | | (0.65 | ) | | | | | | | 4.11 | | | | (1.15 | ) | | | 3.07 | | | | (0.13 | ) | | | 0.75 | |
| Total from investment operations | | | | | | | (0.57 | ) | | | | | | | 4.26 | | | | (0.97 | ) | | | 3.25 | | | | 0.07 | | | | 0.89 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends from net investment income | | | | | | | (0.20 | ) | | | | | | | (0.26 | ) | | | (0.46 | ) | | | (0.24 | ) | | | (0.28 | ) | | | (0.14 | ) |
| Distributions from net realized gains | | | | | | | (0.46 | ) | | | | | | | - | | | | (0.26 | ) | | | (0.20 | ) | | | - | | | | (0.23 | ) |
| Total dividends and distributions | | | | | | | (0.66 | ) | | | | | | | (0.26 | ) | | | (0.72 | ) | | | (0.44 | ) | | | (0.28 | ) | | | (0.37 | ) |
| Net asset value, end of period | | | | | | | $14.08 | | | | | | | | $15.31 | | | | $11.31 | | | | $13.00 | | | | $10.19 | | | | $10.40 | |
| Total Return(b): | | | | | | | (3.90 | )% | | | | | | | 38.10 | % | | | (7.70 | )% | | | 33.02 | % | | | 0.62 | % | | | 9.25 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ratios/Supplemental Data: | | | | |
| Net assets, end of period (000) | | | | | | | $98,469 | | | | | | | | $93,853 | | | | $15,686 | | | | $17,138 | | | | $5,970 | | | | $5,932 | |
| Average net assets (000) | | | | | | | $98,580 | | | | | | | | $57,833 | | | | $16,060 | | | | $8,739 | | | | $6,039 | | | | $5,687 | |
| Ratios to average net assets(c)(d): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses after waivers and/or expense reimbursement | | | | | | | 0.88 | %(e) | | | | | | | 0.94 | % | | | 1.05 | % | | | 1.05 | % | | | 1.05 | % | | | 1.05 | % |
| Expenses before waivers and/or expense reimbursement | | | | | | | 0.88 | %(e) | | | | | | | 0.94 | % | | | 1.42 | % | | | 2.25 | % | | | 3.07 | % | | | 4.02 | % |
| Net investment income (loss) | | | | | | | 1.06 | %(e) | | | | | | | 1.06 | % | | | 1.56 | % | | | 1.56 | % | | | 1.89 | % | | | 1.42 | % |
| Portfolio turnover rate(f) | | | | | | | 60 | % | | | | | | | 165 | % | | | 313 | % | | | 242 | % | | | 202 | % | | | 142 | % |
| (a) | Calculated based on average shares outstanding during the period. |
| (b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each periodreported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
| (c) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees,which are charged to their respective share class. |
| (d) | 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 totransactions 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.
Notes to Financial Statements (unaudited)
1. Organization
Prudential Investment Portfolios 9 (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 isorganized as a Delaware Statutory Trust. These financial statements relate only to the PGIM Select Real Estate 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 capital appreciation.
2. Accounting Policies
The Fund follows the investmentcompany 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 summaryof 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 thepreparation of its financial statements.
Securities Valuation: The Fund holds securities and other assets and liabilities that are fair valued as of theclose 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 thetype of investment and whether market quotations are readily available. The RIC’s Board of Trustees (the “Board”) has adopted valuation procedures for security valuation under which fair valuation responsibilities have been delegatedto PGIM Investments LLC (“PGIM Investments” or the “Manager”). Pursuant to the Board’s delegation, the Manager has established a Valuation Committee responsible for supervising the fair valuation of portfolio securities andother assets and liabilities. 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 notdeemed representative of fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. A record of the ValuationCommittee’s actions is subject to the Board’s review at its first quarterly meeting following the quarter in which such actions take place.
For the fiscalreporting period-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 (includingweekends and holidays). Because such foreign securities trade in markets that are open on weekends and U.S. holidays, the values of some
| | | | |
| PGIM Select Real Estate Fund | | | 21 | |
Notes to Financial Statements (unaudited) (continued)
of the Fund’sforeign 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 ValueMeasurement.
Common or preferred stocks, exchange-traded funds and derivative instruments, if applicable, that are traded on a national securities exchange arevalued 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 thelast sale price or NASDAQ official closing price, they are classified as Level 1 in the fair value hierarchy. In the event that no sale or official closing price on valuation date exists, these securities are generally valued at the meanbetween 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 factorsbased 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 valuehierarchy. 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 adjustmentfactor, 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 exchange-traded funds) are valued at their net asset values as of the close of the NYSEon the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.
Securities and other assets that cannot be priced according to the methods described above are valued based on pricing methodologies approved by the Board. In the eventthat 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 3security’s fair value measurement.
When determining the fair value of securities, some of the factors influencing the valuation include: the nature of anyrestrictions 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 thecapitalization of the issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; any available analyst media or other reports or information deemed reliable by the Manager regarding the issuer orthe 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 theirnet asset values.
Foreign Currency Translation: The books and records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translatedinto U.S. dollars on the following basis:
(i) market value of investment securities, other assets and liabilities — at the exchange rate as of the valuationdate;
(ii) purchases and sales of investment securities, income and expenses — at the rates of exchange prevailing on the respective dates of suchtransactions.
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 notgenerally 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 andrealized 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.
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. dollarequivalent 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.
Master Netting Arrangements: The RIC, on behalf of the Fund, is subject to various Master Agreements, or netting arrangements, with select counterparties. Theseare 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 samecounterparty against amounts to be received; and by the receipt of collateral from the counterparty by the Fund to cover the
| | | | |
| PGIM Select Real Estate Fund | | | 23 | |
Notes to Financial Statements (unaudited) (continued)
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 toset-off the amount owed with the amount owed by the other party, the reporting party intends to set-off and the right of set-offis enforceable by law.
Securities Lending: The Fund lends its portfolio securities to banks and broker-dealers. The loans are secured by collateral at leastequal 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 thecollateral exceeds the value of the loaned securities. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the financial statements may reflect a collateral value that is lessthan 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 securitiesidentical to the loaned securities. The remaining maturities 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 securitiesin 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 offees 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 ininterest 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 thevalue 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 lendingare disclosed in the Statement of Operations.
Equity and Mortgage Real Estate Investment Trusts (collectively REITs): The Fund invested in REITs, whichreport 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 andrecorded 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. Realizedgains (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 Fundbecomes 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. 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 specificexpenses 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 andexpenses, registration fees and fee waivers and/or expense reimbursements, as applicable.
Taxes: It is the Fund’s policy to continue to meet therequirements 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.
Taxreform legislation commonly referred to as the Tax Cuts and Jobs Act permits a direct REIT shareholder to claim a 20% “qualified business income” deduction for ordinary REIT dividends. The tax legislation did not expressly permit regulatedinvestment companies (“RICs”) paying dividends attributable to such income to pass through this special treatment to its shareholders. On January 18, 2019, the Internal Revenue Service issued final regulations that permit RICs to passthrough “qualified REIT dividends” to their shareholders.
Dividends and Distributions: Dividends and distributions to shareholders, which aredetermined 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 reclassifiedbetween 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 gainsduring a fiscal year. |
| | | | |
| PGIM Select Real Estate Fund | | | 25 | |
Notes to Financial Statements (unaudited) (continued)
Estimates: The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in thefinancial statements. Actual results could differ from those estimates.
3. Agreements
The RIC, on behalf of the Fund, has a management agreement with the Manager. Pursuant to this agreement, the Manager has responsibility for all investment advisoryservices and supervises the subadviser’s performance of such services.
The Manager has entered into a subadvisory agreement with PGIM, Inc., which providessubadvisory services to the Fund through its business unit, PGIM Real Estate, and PGIM Real Estate (UK) Limited, an indirect wholly-owned subsidiary of PGIM, Inc. (collectively referred to herein as the “subadviser”). The Manager pays forthe services of subadviser.
Fees payable under the management agreement are computed daily and paid monthly. For the reporting period ended April 30, 2022, thecontractual and effective management fee rates were as follows:
| | |
| | |
| Contractual Management Rate | | Effective Management Fee, before any waivers
and/orexpense reimbursements |
| 0.80% on average daily net assets up to and including$1 billion; | | 0.80% |
| 0.78% on the next $2 billion of average daily netassets; | | |
| 0.76% on the next $2 billion of average daily netassets; | | |
| 0.75% on the next $5 billion of average daily netassets; | | |
| 0.74% on average daily net assets exceeding$10 billion. | | |
The Manager has contractually agreed, through February 28, 2023, to limit total annual operating expenses after fee waivers and/orexpense 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 Fundexpenses such as dividend and interest expense and broker charges on short sales.
Where applicable, the Manager agrees to waive management fees or shared operatingexpenses 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. Feesand/or expenses waived and/or reimbursed by the Manager 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 recoupment for that fiscal year. The expense limitations attributable to each class are as follows:
| | |
| | |
| Class | | Expense
Limitations |
| A | | 1.30% |
| C | | 2.05 |
| Z | | 1.05 |
| R6 | | 1.05 |
The RIC, on behalf of the Fund, has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), whichacts as the distributor of the Class A, Class C, Class Z and Class R6 shares of the Fund. The Fund compensates PIMS for distributing and servicing the Fund’s Class A and Class C shares, pursuant to the plans ofdistribution (the “Distribution Plans”), regardless of expenses actually incurred by PIMS.
Pursuant to the Distribution Plans, the Fund compensates PIMSfor distribution related activities at an annual rate based on average daily net assets per class. PIMS has contractually agreed through February 28, 2023 to limit such fees on certain classes based on the average daily net assets. Thedistribution fees are accrued daily and payable monthly.
The Fund’s annual gross and net distribution rate, where applicable, are as follows:
| | | | | | | | | | |
| | | |
| Class | | Gross Distribution Fee | | Net Distribution Fee |
| A | | | | 0.30 | % | | | | 0.25 | % |
| C | | | | 1.00 | | | | | 1.00 | |
| Z | | | | N/A | | | | | N/A | |
| R6 | | | | N/A | | | | | N/A | |
For the reporting period ended April 30, 2022, 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 turnpaid commissions to salespersons and incurred other distribution costs. The sales charges are as follows where applicable:
| | | | | | | | |
| | | |
| Class | | FESL | | | CDSC | |
| A | | | $40,658 | | | | $— | |
| C | | | — | | | | 92 | |
PGIM Investments, PGIM, Inc., PGIM Real Estate (UK) Limited and PIMS 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’stransfer agent. Transfer agent’s fees and expenses in the Statement of Operations include certain out-of-pocket expenses paid tonon-affiliates, where applicable.
| | | | |
| PGIM Select Real Estate Fund | | | 27 | |
Notes to Financial Statements (unaudited) (continued)
The Fund may invest its overnight sweep cash in the PGIM Core Ultra Short Bond Fund (the “Core Fund”), and its securities lending cash collateral in the PGIMInstitutional Money Market Fund (the “Money Market Fund”), each a fund of Prudential Investment Portfolios 2, registered under the 1940 Act and managed by PGIM Investments. PGIM Investments and/or its affiliates are paid fees or reimbursedfor providing their services to the Core Fund and the Money Market Fund. In addition to the realized and unrealized gains on investments in the Core Fund and Money Market Fund, earnings from such investments are disclosed on the Statement ofOperations as “Affiliated dividend income” and “Income from securities lending, net”, respectively. Effective January 2022, the Fund changed its overnight cash sweep vehicle from the Core Fund to an unaffiliated money marketfund.
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 investment companies, or between an investment company and aperson that is affiliated solely by reason of having a common (or affiliated) investment adviser, common directors/trustees, and/or common officers. For the reporting period ended April 30, 2022, no 17a-7transactions were entered into by the Fund.
5. Portfolio Securities
The aggregate cost of purchases and proceeds from sales of portfolio securities (excluding short-term investments and U.S. Government securities) for the reporting periodended April 30, 2022, were as follows:
| | |
| | |
| Cost of Purchases | | Proceeds from Sales |
$303,543,910 | | $216,982,132 |
A summary of the cost of purchases and proceeds from sales of shares of affiliated mutual funds for the reporting period endedApril 30, 2022, is presented as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Value,
Beginning
of
Period | | Cost of Purchases | | | Proceeds from Sales | | | Change in
Unrealized
Gain (Loss) | | | Realized
Gain (Loss) | | | Value,
End of
Period | | | Shares, End of Period | | | Income | |
| |
| Short-Term Investments - Affiliated MutualFunds: | | | | | |
| | |
| PGIM Core Ultra Short Bond Fund(1)(wa) | | | | | | | | | |
| $2,866,302 | | $ | 35,146,155 | | | $ | 38,012,457 | | | | $— | | | | $ — | | | | $— | | | | — | | | | $1,075 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Value,
Beginning
of
Period | | Cost of
Purchases | | | Proceeds
from Sales | | | Change in
Unrealized
Gain (Loss) | | Realized
Gain (Loss) | | | Value, End of
Period | | Shares, End of Period | | | Income | |
| | |
| PGIM Institutional Money Market Fund(1)(b)(wa) | | | | | | | | |
| $ — | | | $ 6,651,506 | | | | $ 6,651,046 | | | $— | | | $(460) | | | $— | | | — | | | | $ 161 | (2) |
| $2,866,302 | | | $41,797,661 | | | | $44,663,503 | | | $— | | | $(460) | | | $— | | | | | | | $1,236 | |
| (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 ofOperations. |
| (b) | Represents security, or portion thereof, purchased with cash collateral received for securities on loan and includesdividend reinvestment. |
| (wa) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Ultra Short Bond Fund and PGIMInstitutional Money Market Fund, if applicable. |
6. Tax Information
The United States federal income tax basis of the Fund’s investments and the net unrealized appreciation as of April 30, 2022 were as follows:
| | | | | | |
| | | | |
| Tax Basis | | Gross Unrealized Appreciation | | Gross Unrealized Depreciation | | Net Unrealized Appreciation |
| $387,111,075 | | $30,758,110 | | $(17,119,778) | | $13,638,332 |
The GAAP basis may differ from tax basis due to certain tax-related adjustments.
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 provisionfor income tax is 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 yearsup to the most recent fiscal year ended October 31, 2021 are subject to such review.
7. Capital and Ownership
The Fund offers Class A, Class C, Class Z and Class R6 shares . Class A shares are sold with a maximumfront-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 contingent deferred sales charge(“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 topurchase 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 eightyears (ten years prior to January 22, 2021) after purchase. 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.
| | | | |
| PGIM Select Real Estate Fund | | | 29 | |
Notes to Financial Statements (unaudited) (continued)
Under certain circumstances, an exchange may be made from specified share classes of the Fund to one or more other share classes of the Fund as presented in the table oftransactions in shares of beneficial interest, below.
The RIC has authorized an unlimited number of shares of beneficial interest of the Fund at $0.001 par valueper share, currently divided into four classes, designated Class A, Class C, Class Z and Class R6.
As of April 30, 2022, 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 |
| A | | | | 212,804 | | | | | 22.0 | % |
| C | | | | 1,275 | | | | | 0.8 | |
| R6 | | | | 1,418,856 | | | | | 20.3 | |
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 | | | | 79.9 | |
Transactions in shares of beneficial interest were as follows:
| | | | | | | | |
| | | |
| Share Class | | Shares | | | Amount | |
| | |
| Class A | | | | | | | | |
| Six months ended April 30,2022: | | | | | | | | |
| Shares sold | | | 598,003 | | | $ | 8,916,787 | |
| Shares issued in reinvestment of dividends anddistributions | | | 23,543 | | | | 351,769 | |
| Shares purchased | | | (87,565 | ) | | | (1,296,627 | ) |
| Net increase (decrease) in shares outstandingbefore conversion | | | 533,981 | | | | 7,971,929 | |
| Shares issued upon conversion from other shareclass(es) | | | 100 | | | | 1,476 | |
| Shares purchased upon conversion into other shareclass(es) | | | (757 | ) | | | (11,668 | ) |
| Net increase (decrease) in sharesoutstanding | | | 533,324 | | | $ | 7,961,737 | |
| | |
| Year ended October 31, 2021: | | | | | | | | |
| Shares sold | | | 198,267 | | | $ | 2,874,733 | |
| Shares issued in reinvestment of dividends anddistributions | | | 5,277 | | | | 69,387 | |
| Shares purchased | | | (94,647 | ) | | | (1,279,321 | ) |
| Net increase (decrease) in shares outstandingbefore conversion | | | 108,897 | | | | 1,664,799 | |
| Shares issued upon conversion from other shareclass(es) | | | 183 | | | | 2,546 | |
| Shares purchased upon conversion into other shareclass(es) | | | (13,661 | ) | | | (205,052 | ) |
| Net increase (decrease) in sharesoutstanding | | | 95,419 | | | $ | 1,462,293 | |
| | |
| Class C | | | | | | | | |
| Six months ended April 30,2022: | | | | | | | | |
| Shares sold | | | 94,413 | | | $ | 1,408,558 | |
| Shares issued in reinvestment of dividends anddistributions | | | 5,935 | | | | 87,542 | |
| Shares purchased | | | (39,054 | ) | | | (574,496 | ) |
| Net increase (decrease) in shares outstandingbefore conversion | | | 61,294 | | | | 921,604 | |
| Shares purchased upon conversion into other shareclass(es) | | | (240 | ) | | | (3,404 | ) |
| Net increase (decrease) in sharesoutstanding | | | 61,054 | | | $ | 918,200 | |
| | |
| Year ended October 31, 2021: | | | | | | | | |
| Shares sold | | | 71,343 | | | $ | 998,329 | |
| Shares issued in reinvestment of dividends anddistributions | | | 443 | | | | 5,538 | |
| Shares purchased | | | (13,215 | ) | | | (175,530 | ) |
| Net increase (decrease) in shares outstandingbefore conversion | | | 58,571 | | | | 828,337 | |
| Shares purchased upon conversion into other shareclass(es) | | | (5,162 | ) | | | (65,704 | ) |
| Net increase (decrease) in sharesoutstanding | | | 53,409 | | | $ | 762,633 | |
| | | | |
| PGIM Select Real Estate Fund | | | 31 | |
Notes to Financial Statements (unaudited) (continued)
| | | | | | | | |
| | | |
| Share Class | | Shares | | | Amount | |
| | |
| Class Z | | | | | | | | |
| Six months ended April 30,2022: | | | | | | | | |
| Shares sold | | | 6,325,666 | | | $ | 93,760,772 | |
| Shares issued in reinvestment of dividends anddistributions | | | 659,654 | | | | 9,869,874 | |
| Shares purchased | | | (1,794,375 | ) | | | (26,648,871 | ) |
| Net increase (decrease) in shares outstandingbefore conversion | | | 5,190,945 | | | | 76,981,775 | |
| Shares issued upon conversion from other shareclass(es) | | | 970 | | | | 14,781 | |
| Net increase (decrease) in sharesoutstanding | | | 5,191,915 | | | $ | 76,996,556 | |
| | |
| Year ended October 31, 2021: | | | | | | | | |
| Shares sold | | | 13,350,960 | | | $ | 186,168,605 | |
| Shares issued in reinvestment of dividends anddistributions | | | 121,767 | | | | 1,696,608 | |
| Shares purchased | | | (1,477,815 | ) | | | (21,446,422 | ) |
| Net increase (decrease) in shares outstandingbefore conversion | | | 11,994,912 | | | | 166,418,791 | |
| Shares issued upon conversion from other shareclass(es) | | | 19,401 | | | | 280,074 | |
| Net increase (decrease) in sharesoutstanding | | | 12,014,313 | | | $ | 166,698,865 | |
| | |
| Class R6 | | | | | | | | |
| Six months ended April 30,2022: | | | | | | | | |
| Shares sold | | | 2,513,797 | | | $ | 37,562,579 | |
| Shares issued in reinvestment of dividends anddistributions | | | 306,800 | | | | 4,513,402 | |
| Shares purchased | | | (1,957,420 | ) | | | (28,764,208 | ) |
| Net increase (decrease) in shares outstandingbefore conversion | | | 863,177 | | | | 13,311,773 | |
| Shares purchased upon conversion into other shareclass(es) | | | (78 | ) | | | (1,185 | ) |
| Net increase (decrease) in sharesoutstanding | | | 863,099 | | | $ | 13,310,588 | |
| | |
| Year ended October 31, 2021: | | | | | | | | |
| Shares sold | | | 5,802,725 | | | $ | 79,850,314 | |
| Shares issued in reinvestment of dividends anddistributions | | | 67,943 | | | | 918,300 | |
| Shares purchased | | | (1,126,477 | ) | | | (16,354,591 | ) |
| Net increase (decrease) in shares outstandingbefore conversion | | | 4,744,191 | | | | 64,414,023 | |
| Shares purchased upon conversion into other shareclass(es) | | | (877 | ) | | | (11,864 | ) |
| Net increase (decrease) in sharesoutstanding | | | 4,743,314 | | | $ | 64,402,159 | |
8. Borrowings
The RIC, on behalfof 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 shareredemptions. The table below provides details of the SCA.
| | |
| | |
| | | SCA |
| |
| Term of Commitment | | 10/1/2021 – 9/29/2022 |
| |
| Total Commitment | | $ 1,200,000,000 |
| |
| Annualized Commitment Fee on the Unused Portion of theSCA | | 0.15% |
| Annualized Interest Rate onBorrowings | | 1.20% plus the higher of (1)
the effective federal funds
rate, (2) theone-month
LIBOR rate or (3) zero
percent |
Certain affiliated registered investment companies that are parties to the SCA include portfolios that are subject to a predeterminedmathematical 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 utilizethe 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 theParticipating Funds in the SCA equitably.
The Fund utilized the SCA during the reporting period ended April 30, 2022. The average daily balance for the 2 daysthat the Fund had loans outstanding during the period was approximately $10,189,000, borrowed at a weighted average interest rate of 1.30%. The maximum loan outstanding amount during the period was $13,822,000. At April 30, 2022, the Fund didnot have an outstanding loan amount.
9. Risks of Investing in the Fund
The Fund’s 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 theFund’s Prospectus and Statement of Additional Information.
Active Trading Risk: The Fund actively and frequently trades its portfolio securities. Highportfolio turnover results in higher transaction costs, which can affect the Fund’s performance and have adverse tax consequences. In addition, high portfolio turnover may also mean that a proportionately greater amount of distributions toshareholders will be taxed as ordinary income rather than long-term capital gains compared to investment companies with lower portfolio turnover.
DistributionRisk: The Fund’s distributions may consist of net investment income, if any, and net realized gains, if any, from the sale of investments and/or return of capital. The Fund will provide to shareholders early in each calendar year the finaltax character of the Fund’s distributions for the previous year. Also, at such time that the Fund distribution is expected
| | | | |
| PGIM Select Real Estate Fund | | | 33 | |
Notes to Financial Statements (unaudited) (continued)
to be from sources other than current or accumulated net income, a notice to shareholders may be required.
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 tostimulate or stabilize economic growth or the functioning of the securities markets, may at times result in unusually high market volatility, which could negatively impact performance. Relatively reduced liquidity in credit and fixed income marketscould adversely affect issuers worldwide.
Emerging Markets Risk: The risks of foreign investments are greater for investments in or exposed to emergingmarkets. Emerging market countries typically have economic and political systems that are less fully developed, and can be expected to be less stable, than those of more developed countries. For example, the economies of such countries can besubject to rapid and unpredictable rates of inflation or deflation. Low trading volumes may result in a lack of liquidity and price volatility. Emerging market countries may have policies that restrict investment bynon-U.S. investors, or that prevent non-U.S. investors from withdrawing their money at will.
The Fund may invest in some emerging markets that subject it to risks such as those associated with illiquidity, custody of assets, different settlement and clearanceprocedures and asserting legal title under a developing legal and regulatory regime to a greater degree than in developed markets or even in other emerging markets.
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 thanthose 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 stableand 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 ofissuers of
foreign securities to make payment of principal and interest or dividends to investors located outside the country, due toblockage of foreign currency exchanges or otherwise. Investments in emerging markets are subject to greater volatility and price declines.
In addition, theFund’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 fora 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 andfrequent trading of Fund securities can increase expenses.
Large Shareholder and Large Scale Redemption Risk: Certain individuals, accounts, funds (includingfunds 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 investmentin 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 negativeimpact 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 itsinvestment 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.
Market Capitalization Risk: The Fund may invest in companies of any market capitalization. Generally, the stock prices of small- and mid-cap companies are less stable than the prices of large-cap stocks and may present greater risks. Large capitalization companies as a group could fall out of favor with themarket, causing the Fund to underperform compared to investments that focus on smaller capitalized companies.
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), geopolitical developments (includingtrading 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 besubstantial 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
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| PGIM Select Real Estate Fund | | | 35 | |
Notes to Financial Statements (unaudited) (continued)
negative impacts on issuers and the markets for certain securities and commodities and/or government intervention. They may also cause short- or long-term economicuncertainties 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’sinvestments 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 securitiesbeing valued at zero.
COVID-19 and the related governmental and public responses have had and may continue to have an impacton the Fund’s investments and net asset value and have led and may continue to lead to increased market volatility and the potential for illiquidity in certain classes of securities and sectors of the market. They have also had and may continueto result in periods of business disruption, business closures, inability to obtain raw materials, supplies and component parts, and reduced or disrupted operations for the issuers in which the Fund invests. The occurrence, reoccurrence and pendencyof public health epidemics could adversely affect the economies and financial markets either in specific countries or worldwide.
Market Risk: Securitiesmarkets 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 thesecurities owned by the Fund fall, the value of your investment in the Fund will decline.
Real Estate Investment Trust (“REIT”) Risk: Investing inREITs involves certain unique risks in addition to those risks associated with investing in the real estate industry in general. REITs may be affected by changes in the value of the underlying property owned by the REITs, while mortgage REITs may beaffected by the quality of any credit extended. REITs are dependent upon management skills, may not be diversified geographically or by property/mortgage asset type, and are subject to heavy cash flow dependency, default by borrowers andself-liquidation. REITs may be more volatile and/or more illiquid than other types of equity securities. REITs (especially mortgage REITs) are subject to interest rate risks. REITs may incur significant amounts of leverage. The Fund will indirectlybear a portion of the expenses, including management fees, paid by each REIT in which it invests, in addition to the expenses of the Fund.
REITs must also meetcertain requirements under the Internal Revenue Code of 1986, as amended (the Code) to avoid entity level tax and be eligible to pass-through certain tax attributes of their income to shareholders. REITs are consequently subject to the risk offailing to meet these requirements for favorable tax treatment and of failing to maintain their
exemptions from registration under the Investment Company Act of 1940. REITs are subject to the risks of changes in the Codeaffecting their tax status.
Real Estate Related Securities Risk: Because the Fund invests in real estate securities, including REITs, the Fund is subject tothe risks of investing in the real estate industry, such as changes in general and local economic conditions, the supply and demand for real estate and changes in zoning and tax laws. Since the Fund concentrates in the real estate industry, itsholdings can vary significantly from broad market indices. As a result, the Fund’s performance can deviate from the performance of such indices. Because the Fund invests in stocks, there is the risk that the price of a particular stock owned bythe Fund could go down or pay lower-than-expected or no dividends. In addition to an individual stock losing value, the value of the equity markets or of companies comprising the real estate industry could go down.
An investment in the Fund will be closely linked to the performance of the real estate markets. Real estate securities are subject to the same risks as directinvestments in real estate and mortgages, and their value will depend on the value of the underlying properties or the underlying loans or interests. The underlying loans may be subject to the risks of default or of prepayments that occur earlier orlater than expected, and such loans may also include so-called “subprime” mortgages. The value of these securities will rise and fall in response to many factors, including economic conditions, thedemand for rental property and interest rates. In particular, the value of these securities may decline when interest rates rise and will also be affected by the real estate market and by the management of the underlying properties.
Selection Risk: Selection risk is the risk that the securities selected by the subadviser will underperform the market, the relevant indices, or other funds withsimilar investment objectives and investment strategies. Individual REIT prices may drop because of the failure of borrowers to pay their loans, a dividend reduction, a disruption to the real estate investment sales market, changes in federal orstate taxation policies affecting REITs, or poor management of a REIT.
Value Style Risk: Since the Fund follows a value investment style, there is the riskthat 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 orovervalued. 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 withinvestors, 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.
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| PGIM Select Real Estate Fund | | | 37 | |
Notes to Financial Statements (unaudited) (continued)
10. Recent Regulatory Developments
On December 3, 2020, theSEC announced that it voted to adopt a new rule that establishes an updated regulatory framework for fund valuation practices (the “Rule”). The Rule, in part, provides (i) a framework for determining fair value in good faith and(ii) provides for a fund Board’s assignment of its responsibility for the execution of valuation-related activities to a fund’s investment adviser. Further, the SEC is rescinding previously issued guidance on related issues. The Ruletook effect on March 8, 2021, with a compliance date of September 8, 2022. Management is currently evaluating the Rule and its impact to the Fund.
Liquidity Risk Management Program (unaudited)
Consistent with Rule 22e-4 under the 1940 Act (the “Liquidity Rule”), the Fund has adopted and implemented a liquidityrisk management program (the “LRMP”). The Fund’s LRMP seeks to assess and manage the Fund’s liquidity risk, which is defined as the risk that the Fund is unable to meet investor redemption requests without significantly dilutingthe remaining investors’ interests in the Fund. The Board has approved PGIM Investments LLC (“PGIM Investments”), the Fund’s investment manager, to serve as the administrator of the Fund’s LRMP. As part of itsresponsibilities as administrator, PGIM Investments has retained a third party to perform certain functions, including providing market data and liquidity classification model information.
The Fund’s LRMP includes a number of processes designed to support the assessment and management of its liquidity risk. In particular, the Fund’s LRMP includesno less than annual assessments of factors that influence the Fund’s liquidity risk; no less than monthly classifications of the Fund’s investments into one of four liquidity classifications provided for in the Liquidity Rule; a 15% of netassets limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); establishment of a minimum percentage of the Fund’s assets to be invested in investments classified as “highly liquid” (asdefined under the Liquidity Rule) if the Fund does not invest primarily in highly liquid investments; and regular reporting to the Board.
At a meeting of the Boardon March 1-3, 2022, PGIM Investments provided a written report (“LRMP Report”) to the Board addressing the operation, adequacy, and effectiveness of the Fund’s LRMP, including any materialchanges to the LRMP for the period from January 1, 2021 through December 31, 2021 (“Reporting Period”). The LRMP Report concluded that the Fund’s LRMP was reasonably designed to assess and manage the Fund’s liquidityrisk and was adequately and effectively implemented during the Reporting Period. There were no material changes to the LRMP during the Reporting Period. The LRMP Report further concluded that the Fund’s investment strategies continue to beappropriate given the Fund’s status as an open-end fund.
There can be no assurance that the LRMP will achieve itsobjectives in the future. Additional information regarding risks of investing in the Fund, including liquidity risks presented by the Fund’s investment portfolio, is found in the Fund’s Prospectus and Statement of Additional Information.
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| PGIM Select Real Estate Fund | | | 39 | |
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| ∎ MAIL | | ∎ TELEPHONE | | ∎ WEBSITE |
| 655 Broad Street Newark, NJ 07102 | | (800) 225-1852 | | pgim.com/investments |
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| PROXY VOTING |
| The Board of Trustees of the Fund has delegated to the Fund’s subadvisers the responsibility for voting any proxies and maintaining proxy recordkeeping with respectto the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852 or by visiting the Securities and Exchange Commission’swebsite at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s websiteand on the Securities and Exchange Commission’s website. |
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| TRUSTEES |
| Ellen S. Alberding • Kevin J. Bannon• Scott E. Benjamin • Linda W. Bynoe • Barry H. Evans • Keith F. Hartstein •Laurie Simon Hodrick • Stuart S. Parker • Brian K. Reid • Grace C. Torres |
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| OFFICERS |
| Stuart S. Parker, President • Scott E. Benjamin,Vice President • Christian J. Kelly, Treasurer and Principal Financial and Accounting Officer • Claudia DiGiacomo, Chief Legal Officer • Isabelle Sajous, Chief Compliance Officer • Jonathan Corbett, Anti-Money Laundering Compliance Officer •Andrew R. French, Secretary • Melissa Gonzalez, Assistant Secretary • Diana N. Huffman, Assistant Secretary • KellyA. Coyne, Assistant Secretary • Patrick E. McGuinness, Assistant Secretary • Debra Rubano, Assistant Secretary •Lana Lomuti, Assistant Treasurer • Russ Shupak, Assistant Treasurer • Elyse M. McLaughlin, Assistant Treasurer• Deborah Conway, Assistant Treasurer |
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| MANAGER | | PGIM Investments LLC | | 655 Broad Street Newark, NJ 07102 |
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| SUBADVISERS | | PGIM Real Estate | | 7 Giralda Farms Madison, NJ 07940 |
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| | PGIM Real Estate (UK) Limited | | Grand Buildings, 1-3 Strand Trafalgar Square London, WC2N 5HR United Kingdom |
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| DISTRIBUTOR | | Prudential Investment Management Services LLC | | 655 Broad Street Newark, NJ 07102 |
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| CUSTODIAN | | The Bank of New York Mellon | | 240 Greenwich Street New York, NY 10286 |
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| TRANSFER AGENT | | Prudential Mutual Fund Services LLC | | PO Box 9658 Providence, RI 02940 |
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| INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | | PricewaterhouseCoopers LLP | | 300 Madison Avenue New York, NY 10017 |
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| FUND COUNSEL | | Willkie Farr & Gallagher LLP | | 787 Seventh Avenue New York, NY 10019 |
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| An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summaryprospectus contain this and other information about the Fund. An investor may obtain the prospectus and summary prospectus by visiting our website at pgim.com/investments or by calling (800)225-1852. The prospectus and summary prospectus should be read carefully before investing. |
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| E-DELIVERY |
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| To receive your mutual fund documents online, go topgim.com/investments/resource/edelivery and enroll. Instead of receiving printed documents by mail, you will receive notification via email when new materials are available. You can cancel your enrollment or change youremail address at any time by visiting the website address above. |
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| SHAREHOLDER COMMUNICATIONS WITH TRUSTEES |
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| Shareholders can communicate directly with the Board of Trustees bywriting to the Chair of the Board, PGIM Select Real Estate Fund, PGIM Investments, Attn: Board of Trustees, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Trustee by writing to that Trustee at the sameaddress. Communications are not screened before being delivered to the addressee. |
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| AVAILABILITY OF PORTFOLIO HOLDINGS |
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| The Fund files its complete schedule of portfolio holdings with theSecurities and Exchange Commission on Form N-PORT. The Fund’s Form N-PORT filings are available on the Commission’s website at sec.gov. Form N-PORT is filed with the Commission quarterly, and each Fund’s full portfolio holdings as of the first and third fiscal quarter-ends will be made publicly available 60 days after the end of each quarter atsec.gov. |
Mutual Funds:
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| ARE NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY | | MAY LOSE VALUE | | ARE NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR ANY BANK AFFILIATE |
PGIM SELECT REAL ESTATE FUND
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| SHARE CLASS | | A | | C | | Z | | R6 |
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| NASDAQ | | SREAX | | SRECX | | SREZX | | SREQX |
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| CUSIP | | 74441J811 | | 74441J795 | | 74441J779 | | 74441J787 |
MF223E2
PGIM INTERNATIONAL BOND FUND
SEMIANNUAL REPORT
APRIL 30, 2022
To enroll in e-delivery, go to pgim.com/investments/resource/edelivery
Table of Contents
This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
The information about the Fund’s portfolio holdings is for the period covered by this report and is subject to change thereafter.
The accompanying financial statements as of April 30, 2022 were not audited and, accordingly, no auditor’s opinion is expressed on them.
Mutual funds are distributed by Prudential Investment Management Services LLC, (PIMS), member SIPC. PGIM Fixed Income is a unit of PGIM, Inc. (PGIM), a registeredinvestment adviser. PIMS and PGIM are Prudential Financial companies. © 2022 Prudential Financial, Inc. and its related entities. PGIM and the PGIM logo are service marks of PrudentialFinancial, Inc. and its related entities, registered in many jurisdictions worldwide.
2 Visit our website atpgim.com/investments
Letter from the President
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 | | Dear Shareholder: We hope you find the semiannual report for the PGIM International Bond Fund informative and useful. The report covers performance for thesix-month period ended April 30, 2022. Regardingyour investments with PGIM, we believe it is important to maintain a diversified portfolio of funds consistent with your tolerance for risk, time horizon, and financial goals. |
Your financial advisor can help you create a diversified investment plan that may include funds covering all the basic asset classes andthat reflects your personal investor profile and risk tolerance. However, diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets.
At PGIM Investments, we provide access to active investment strategies across the global markets in the pursuit of consistent outperformance for investors. PGIM is a top-10 investment manager globally with more than $1.5 trillion in assets under management. Our scale and investment expertise allow us to deliver a diversified suite of actively managed solutions across a broadspectrum of asset classes and investment styles.
Thank you for choosing our family of funds.
Sincerely,
Stuart S. Parker, President
PGIMInternational Bond Fund
June 15, 2022
PGIM International BondFund 3
Your Fund’s Performance
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investmentwill fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of themost recent month-end by visiting our website at pgim.com/investments or by calling (800) 225-1852.
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| | | Total Returns as of 4/30/22 | | Average Annual Total Returns as of 4/30/22 |
| | | (without sales charges) | | (with sales charges) |
| | | Six Months* (%) | | One Year (%) | | Five Years (%) | | Since Inception (%) |
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| Class A | | -13.72 | | -16.86 | | 0.28 | | 0.80 (12/14/2016) |
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| Class C | | -14.15 | | -15.64 | | 0.16 | | 0.64 (12/14/2016) |
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| Class Z | | -13.67 | | -13.86 | | 1.23 | | 1.70 (12/14/2016) |
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| Class R6 | | -13.54 | | -13.71 | | 1.27 | | 1.75 (12/14/2016) |
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| Bloomberg Global Aggregate ex-USD (USD Hedged) Index | | | | |
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| | | -5.39 | | -5.28 | | 1.74 | | 1.80 |
*Not annualized
Since Inception returns are providedsince the Fund has less than 10 fiscal years of returns. Since Inception returns for the Index are measured from the closest month-end to the Fund’s inception date.
4 Visit our website atpgim.com/investments
The returns in the tables do not reflect the deduction of taxes that a shareholder would pay onFund distributions or following the redemption of Fund shares. The average annual total returns take into account applicable sales charges, which are described for each share class in the table below.
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| | | Class A | | Class C | | Class Z | | Class R6 |
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| Maximuminitial sales charge | | 3.25% of the public offering price | | None | | None | | None |
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Contingent deferred sales charge (CDSC) (as a percentage of the lower of the original purchase price or the net asset value at redemption) | | 1.00% on sales of $500,000 or more made within 12 monthsof purchase | | 1.00% on sales made within 12 months of purchase | | None | | None |
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| Annualdistribution and service (12b-1) fees (shown as a percentage of average daily net assets) | | 0.25% | | 1.00% | | None | | None |
Benchmark Definition
Bloomberg Global Aggregate ex-USD (USD Hedged) Index—The Bloomberg Global Aggregateex-USD (USD Hedged) Index provides a broad-based measure of the global investment-grade fixed income markets, with index components for the Pan-European Aggregate andthe Asian-Pacific Aggregate excluding US dollar-denominated components.
Investors cannot invest directly in an index. The returns for the Index would be lower ifthey included the effects of sales charges, operating expenses of a mutual fund, or taxes that may be paid by an investor.
PGIM International Bond Fund 5
Your Fund’s Performance (continued)
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| Distributions and Yields as of 4/30/22 | | | | | | |
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| | | Total Distributions Paid for Six Months ($) | | SEC 30-Day Subsidized Yield* (%) | | SEC 30-Day Unsubsidized Yield** (%) |
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| Class A | | 0.31 | | 2.73 | | -0.54 |
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| Class C | | 0.28 | | 2.06 | | -6.80 |
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| Class Z | | 0.33 | | 3.19 | | 1.71 |
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| Class R6 | | 0.33 | | 3.24 | | 2.67 |
*SEC 30-Day Subsidized Yield (%)—A standardized yield calculation created bythe Securities and Exchange Commission, it reflects the income earned during a 30-day period, after the deduction of the Fund’s net expenses (net of any expense waivers or reimbursements). The investorexperience is represented by the SEC 30-Day Subsidized Yield.
**SEC30-Day Unsubsidized Yield (%)—A standardized yield calculation created by the Securities and Exchange Commission, it reflects the income earned during a 30-dayperiod, after the deduction of the Fund’s gross expenses. The investor experience is represented by the SEC 30-Day Subsidized Yield.
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| Credit Quality expressed as a percentage of total investments as of 4/30/22 (%) | | | |
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| AAA | | | 6.0 | |
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| AA | | | 5.7 | |
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| A | | | 15.9 | |
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| BBB | | | 40.2 | |
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| BB | | | 12.4 | |
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| B | | | 6.2 | |
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| CCC | | | 0.8 | |
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| Not Rated | | | 2.0 | |
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| Cash/Cash Equivalents | | | 10.8 | |
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| Total | | | 100.0 | |
Credit ratings reflect the highest rating assigned by a nationally recognized statistical rating organization (NRSRO)such as Moody’s Investors Service, Inc. (Moody’s), S&P Global Ratings (S&P), or Fitch, Inc. (Fitch). Credit ratings reflect the common nomenclature used by both S&P and Fitch. Where applicable, ratings are converted to thecomparable S&P/Fitch rating tier nomenclature. These rating agencies are independent and are widely used. The Not Rated category consists of securities that have not been rated by an NRSRO. Credit ratings are subject to change.
6 Visit our website atpgim.com/investments
Fees and Expenses
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemptions, asapplicable, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses, as applicable. This example is intended to help you understand your ongoingcosts (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on aninvestment of $1,000 held through the six-month period ended April 30, 2022. The example is for illustrative purposes only; you should consult the Prospectus for information on initial and subsequentminimum investment requirements.
Actual Expenses
The first line for eachshare class in the table on the following page provides information about actual account values and actual expenses. You may use the information on this line, together with the amount you invested, to estimate the expenses that you paid over theperiod. Simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During theSix-Month Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example forComparison Purposes
The second line for each share class in the table on the following page provides information about hypothetical account values andhypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimatethe actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypotheticalexamples that appear in the shareholder reports of the other funds.
The Fund’s transfer agent may charge additional fees to holders of certain accounts thatare not included in the expenses shown in the table on the following page. These fees apply to individual retirement accounts (IRAs) and Section 403(b) accounts. As of the close of the six-month periodcovered by the table, IRA fees included an annual maintenance fee of $15 per account (subject to a maximum annual maintenance fee of $25 for all accounts held by the same shareholder). Section 403(b) accounts are charged an annual $25 fiduciarymaintenance fee. Some of the fees may vary in amount, or may be waived, based on your total account balance or the number of PGIM funds, including the Fund, that you own. You should consider the additional fees that were charged to your Fund accountover the six-month period when you estimate the total ongoing expenses paid over the period and the impact of these fees on your ending account value, as these additional expenses are not reflected in theinformation
PGIM International BondFund 7
Fees and Expenses(continued)
provided in the expense table. Additional fees have the effect of reducing investment returns.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads).Therefore, the second line for each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, yourcosts would have been higher.
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| PGIM International Bond Fund | | Beginning Account Value November 1, 2021 | | Ending Account Value April 30, 2022 | | Annualized Expense Ratio Based on the Six-Month Period | | Expenses Paid During the Six-Month Period* |
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| Class A | | Actual | | $1,000.00 | | $ 862.80 | | 0.99% | | $4.57 |
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| | Hypothetical | | $1,000.00 | | $1,019.89 | | 0.99% | | $4.96 |
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| Class C | | Actual | | $1,000.00 | | $ 858.50 | | 1.74% | | $8.02 |
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| | Hypothetical | | $1,000.00 | | $1,016.17 | | 1.74% | | $8.70 |
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| Class Z | | Actual | | $1,000.00 | | $ 863.30 | | 0.63% | | $2.91 |
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| | Hypothetical | | $1,000.00 | | $1,021.67 | | 0.63% | | $3.16 |
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| Class R6 | | Actual | | $1,000.00 | | $ 864.60 | | 0.58% | | $2.68 |
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| | | Hypothetical | | $1,000.00 | | $1,021.92 | | 0.58% | | $2.91 |
*Fund expenses (net of fee waivers or subsidies, if any) for each share class are equal to the annualized expenseratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by the 181 days in the six-month period ended April 30, 2022, and divided by the 365days in the Fund’s fiscal year ending October 31, 2022 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund mayinvest.
8 Visit our website atpgim.com/investments
Schedule of Investments (unaudited)
as ofApril 30, 2022
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal Amount (000)# | | | Value | |
| | | | |
| LONG-TERM INVESTMENTS 91.2% | | | | | | | | | | | | | | | | |
| | | | |
| ASSET-BACKED SECURITIES 4.3% | | | | | | | | | | | | | | | | |
| | | | |
| Cayman Islands 3.3% | | | | | | | | | | | | | | | | |
| | | | |
| HPS Loan Management Ltd., | | | | | | | | | | | | | | | | |
| Series 10A-16, Class A1RR, 144A, 3 Month LIBOR
+ 1.140% (Cap N/A, Floor1.140%) | | | 2.203%(c) | | | | 04/20/34 | | | | 500 | | | $ | 497,031 | |
| Mountain View CLO Ltd., | | | | | | | | | | | | | | | | |
| Series 2019-01A, Class A1R, 144A, 3 Month
LIBOR + 1.250% (Cap N/A, Floor1.250%) | | | 2.294(c) | | | | 10/15/34 | | | | 250 | | | | 247,677 | |
| Silver Creek CLO Ltd., | | | | | | | | | | | | | | | | |
| Series 2014-01A, Class AR, 144A, 3 Month LIBOR
+ 1.240% (Cap N/A, Floor0.000%) | | | 2.303(c) | | | | 07/20/30 | | | | 222 | | | | 221,271 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 965,979 | |
| | | | |
| United States 1.0% | | | | | | | | | | | | | | | | |
| | | | |
| Oportun Funding XIII LLC, | | | | | | | | | | | | | | | | |
| Series 2019-A, Class B, 144A | | | 3.870 | | | | 08/08/25 | | | | 100 | | | | 98,491 | |
| SoFi Alternative Trust, | | | | | | | | | | | | | | | | |
| Series 2019-D, Class 1PT, 144A | | | 3.026(cc) | | | | 01/16/46 | | | | 65 | | | | 63,658 | |
| TH MSR Issuer Trust, | | | | | | | | | | | | | | | | |
| Series 2019-FT01, Class A, 144A, 1 Month LIBOR
+ 2.800% (Cap N/A, Floor 2.800%) | | | 3.468(c) | | | | 06/25/24 | | | | 150 | | | | 147,168 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 309,317 | |
| | | | | | | | | | | | | | | | |
| | | | |
| TOTAL ASSET-BACKED SECURITIES
(cost $1,287,943) | | | | | | | | | | | | | | | 1,275,296 | |
| | | | | | | | | | | | | | | | |
| | | | |
| COMMERCIAL MORTGAGE-BACKED SECURITIES 6.8% | | | | | | | | | | | | | | | | |
| | | | |
| Canada 0.1% | | | | | | | | | | | | | | | | |
| | | | |
| Real Estate Asset Liquidity Trust, | | | | | | | | | | | | | | | | |
| Series 2020-01A, Class A1, 144A | | | 2.381(cc) | | | | 02/12/55 | | | CAD | 23 | | | | 16,682 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Ireland 1.2% | | | | | | | | | | | | | | | | |
| | | | |
| Taurus DAC, | | | | | | | | | | | | | | | | |
| Series 2021-UK4A, Class B, 144A, SONIA
+ 1.500% (Cap N/A, Floor 1.500%) | | | 2.108(c) | | | | 08/17/31 | | | GBP | 97 | | | | 121,759 | |
See Notes to Financial Statements.
PGIM International Bond Fund 9
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal Amount (000)# | | | Value | |
| | | | |
| COMMERCIAL MORTGAGE-BACKED SECURITIES (Continued) | | | | | | | | | | | | | | | | |
| | | | |
| Ireland (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
| Taurus DAC, (cont’d.) | | | | | | | | | | | | | | | | |
| Series 2021-UK4A, Class C, 144A, SONIA +
1.750% (Cap N/A, Floor 1.750%) | | | 2.358%(c) | | | | 08/17/31 | | | GBP | 97 | | | $ | 120,941 | |
| Series 2021-UK4A, Class D, 144A, SONIA +
2.100% (Cap N/A, Floor 2.100%) | | | 2.708(c) | | | | 08/17/31 | | | GBP | 96 | | | | 121,037 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 363,737 | |
| | | | |
| United Kingdom 0.9% | | | | | | | | | | | | | | | | |
| | | | |
| Salus European Loan Conduit DAC, | | | | | | | | | | | | | | | | |
| Series 33A, Class A, 144A, 3 Month GBP LIBOR +
1.500% (Cap 6.500%, Floor 1.500%) | | | 2.713(c) | | | | 01/23/29 | | | GBP | 200 | | | | 251,474 | |
| | | | | | | | | | | | | | | | |
| | | | |
| United States 4.6% | | | | | | | | | | | | | | | | |
| | | | |
| BX Commercial Mortgage Trust, | | | | | | | | | | | | | | | | |
| Series 2019-XL, Class J, 144A, 1 Month LIBOR +
2.650% (Cap N/A, Floor2.650%) | | | 3.204(c) | | | | 10/15/36 | | | | 255 | | | | 248,912 | |
| Cold Storage Trust, | | | | | | | | | | | | | | | | |
| Series 2020-ICE05, Class E, 144A, 1 Month
LIBOR + 2.766% (Cap N/A, Floor 2.833%) | | | 3.320(c) | | | | 11/15/37 | | | | 98 | | | | 97,227 | |
| FHLMC Multifamily Structured Pass-Through Certificates, | | | | | | | | | | | | | | | | |
| Series K111, Class X1, IO | | | 1.681(cc) | | | | 05/25/30 | | | | 399 | | | | 40,525 | |
| Series K113, Class X1, IO | | | 1.490(cc) | | | | 06/25/30 | | | | 1,155 | | | | 104,001 | |
| Series KG03, Class X1, IO | | | 1.483(cc) | | | | 06/25/30 | | | | 1,290 | | | | 114,684 | |
| MKT Mortgage Trust, | | | | | | | | | | | | | | | | |
| Series 2020-525M, Class F, 144A | | | 3.039(cc) | | | | 02/12/40 | | | | 250 | | | | 181,241 | |
| Morgan Stanley Capital I Trust, | | | | | | | | | | | | | | | | |
| Series 2019-MEAD, Class E, 144A | | | 3.283(cc) | | | | 11/10/36 | | | | 300 | | | | 271,160 | |
| One New York Plaza Trust, | | | | | | | | | | | | | | | | |
| Series 2020-01NYP, Class C, 144A, 1 Month
LIBOR + 2.200% (Cap N/A, Floor 2.200%) | | | 2.754(c) | | | | 01/15/36 | | | | 100 | | | | 98,367 | |
| Series 2020-01NYP, Class D, 144A, 1 Month
LIBOR + 2.750% (Cap N/A, Floor 2.750%) | | | 3.304(c) | | | | 01/15/36 | | | | 100 | | | | 98,303 | |
| Wells Fargo Commercial Mortgage Trust, | | | | | | | | | | | | | | | | |
| Series 2021-FCMT, Class C, 144A, 1 Month LIBOR
+ 2.400% (Cap N/A, Floor 2.400%) | | | 2.954(c) | | | | 05/15/31 | | | | 100 | | | | 98,222 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 1,352,642 | |
| | | | | | | | | | | | | | | | |
| | | | |
| TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES
(cost $2,120,019) | | | | | | | | | | | | | | | 1,984,535 | |
| | | | | | | | | | | | | | | | |
See Notes to Financial Statements.
10
| | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | Maturity
Date | | Principal Amount (000)# | | | Value | |
| | | | |
| CORPORATE BONDS 29.1% | | | | | | | | | | | | |
| | | | |
| Australia 0.4% | | | | | | | | | | | | |
| | | | |
| Transurban Finance Co. Pty Ltd., | | | | | | | | | | | | |
| Sr. Sec’d. Notes, EMTN | | 2.000% | | 08/28/25 | | EUR | 100 | | | $ | 106,588 | |
| | | | |
| Belgium 0.2% | | | | | | | | | | | | |
| | | | |
| Anheuser-Busch Cos. LLC/Anheuser-Busch InBev
Worldwide, Inc., | | | | | | | | | | | | |
| Gtd. Notes | | 4.900 | | 02/01/46 | | | 60 | | | | 59,172 | |
| | | | |
| Brazil 0.4% | | | | | | | | | | | | |
| | | | |
| Petrobras Global Finance BV, | | | | | | | | | | | | |
| Gtd. Notes | | 6.625 | | 01/16/34 | | GBP | 100 | | | | 125,308 | |
| | | | |
| Bulgaria 0.3% | | | | | | | | | | | | |
| | | | |
| Bulgarian Energy Holding EAD, | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | 2.450 | | 07/22/28 | | EUR | 100 | | | | 84,907 | |
| | | | |
| China 0.3% | | | | | | | | | | | | |
| | | | |
| Aircraft Finance Co. Ltd., | | | | | | | | | | | | |
| Sr. Sec’d. Notes, Series B | | 4.100 | | 03/29/26 | | | 84 | | | | 81,134 | |
| | | | |
| France 2.2% | | | | | | | | | | | | |
| | | | |
| Altice France SA, | | | | | | | | | | | | |
| Sr. Sec’d. Notes | | 3.375 | | 01/15/28 | | EUR | 100 | | | | 90,099 | |
| Sr. Sec’d. Notes, 144A | | 2.500 | | 01/15/25 | | EUR | 100 | | | | 98,922 | |
| Sr. Sec’d. Notes, 144A | | 3.375 | | 01/15/28 | | EUR | 100 | | | | 90,100 | |
| Iliad Holding SASU, | | | | | | | | | | | | |
| Sr. Sec’d. Notes, 144A | | 5.125 | | 10/15/26 | | EUR | 100 | | | | 102,109 | |
| La Poste SA, | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, EMTN | | 1.375 | | 04/21/32 | | EUR | 100 | | | | 99,096 | |
| SNCF Reseau, | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | 4.700 | | 06/01/35 | | CAD | 100 | | | | 82,628 | |
| Verallia SA, | | | | | | | | | | | | |
| Gtd. Notes | | 1.625 | | 05/14/28 | | EUR | 100 | | | | 95,033 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | 657,987 | |
| | | | |
| Germany 2.6% | | | | | | | | | | | | |
| | | | |
| Allianz SE, | | | | | | | | | | | | |
| Jr. Sub. Notes | | 3.375(ff) | | 09/18/24(oo) | | EUR | 200 | | | | 214,147 | |
| Techem Verwaltungsgesellschaft 674 mbH, | | | | | | | | | | | | |
| Sr. Sec’d. Notes | | 6.000 | | 07/30/26 | | EUR | 88 | | | | 91,297 | |
See Notes to Financial Statements.
PGIM International Bond Fund 11
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal Amount (000)# | | | Value | |
| | | | |
| CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
| Germany (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
| TK Elevator Holdco GmbH, | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, 144A | | | 6.625% | | | | 07/15/28 | | | EUR | 90 | | | $ | 86,847 | |
| TK Elevator Midco GmbH, | | | | | | | | | | | | | | | | |
| Sr. Sec’d. Notes, 144A | | | 4.375 | | | | 07/15/27 | | | EUR | 100 | | | | 97,750 | |
| Volkswagen International Finance NV, | | | | | | | | | | | | | | | | |
| Gtd. Notes | | | 2.700(ff) | | | | 12/14/22(oo) | | | EUR | 100 | | | | 105,516 | |
| Gtd. Notes | | | 4.625(ff) | | | | 03/24/26(oo) | | | EUR | 150 | | | | 158,646 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 754,203 | |
| | | | |
| Hong Kong 0.8% | | | | | | | | | | | | | | | | |
| | | | |
| HKT Capital No. 3 Ltd., | | | | | | | | | | | | | | | | |
| Gtd. Notes | | | 1.650 | | | | 04/10/27 | | | EUR | 100 | | | | 99,449 | |
| Sun Hung Kai Properties Capital Market Ltd., | | | | | | | | | | | | | | | | |
| Gtd. Notes, EMTN | | | 3.200 | | | | 08/14/27 | | | CNH | 1,000 | | | | 142,732 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 242,181 | |
| | | | |
| Hungary 0.4% | | | | | | | | | | | | | | | | |
| | | | |
| MFB Magyar Fejlesztesi Bank Zrt, | | | | | | | | | | | | | | | | |
| Gov’t. Gtd. Notes | | | 1.375 | | | | 06/24/25 | | | EUR | 100 | | | | 103,375 | |
| | | | |
| Iceland 0.4% | | | | | | | | | | | | | | | | |
| | | | |
| Landsvirkjun, | | | | | | | | | | | | | | | | |
| Gov’t. Gtd. Notes, EMTN, 3 Month EURIBOR + 0.090% | | | 0.000(cc) | | | | 07/24/26 | | | EUR | 100 | | | | 103,921 | |
| | | | |
| India 0.3% | | | | | | | | | | | | | | | | |
| | | | |
| NTPC Ltd., | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, EMTN | | | 2.750 | | | | 02/01/27 | | | EUR | 100 | | | | 102,731 | |
| | | | |
| Indonesia 0.3% | | | | | | | | | | | | | | | | |
| | | | |
| Perusahaan Listrik Negara PT, | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, 144A | | | 1.875 | | | | 11/05/31 | | | EUR | 100 | | | | 88,570 | |
| | | | |
| Italy 1.0% | | | | | | | | | | | | | | | | |
| | | | |
| Assicurazioni Generali SpA, | | | | | | | | | | | | | | | | |
| Sub. Notes, EMTN | | | 5.500(ff) | | | | 10/27/47 | | | EUR | 100 | | | | 111,727 | |
| Nexi SpA, | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 2.125 | | | | 04/30/29 | | | EUR | 200 | | | | 180,157 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 291,884 | |
See Notes to Financial Statements.
12
| | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | Maturity
Date | | Principal
Amount
(000)# | | | Value | |
| | | | |
| CORPORATE BONDS (Continued) | | | | | | | | | | | | |
| | | | |
| Kazakhstan 0.5% | | | | | | | | | | | | |
| | | | |
| Kazakhstan Temir Zholy National Co. JSC, | | | | | | | | | | | | |
| Gtd. Notes | | 3.250% | | 12/05/23 | | CHF | 50 | | | $ | 42,657 | |
| Gtd. Notes | | 3.638 | | 06/20/22 | | CHF | 100 | | | | 99,258 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | 141,915 | |
| | | | |
| Luxembourg 1.3% | | | | | | | | | | | | |
| | | | |
| ARD Finance SA, | | | | | | | | | | | | |
| Sr. Sec’d. Notes, Cash coupon 5.000% or PIK 5.750% | | 5.000 | | 06/30/27 | | EUR | 100 | | | | 87,277 | |
| Sr. Sec’d. Notes, 144A, Cash coupon 5.000% or PIK 5.750% | | 5.000 | | 06/30/27 | | EUR | 100 | | | | 87,277 | |
| Matterhorn Telecom SA, | | | | | | | | | | | | |
| Sr. Sec’d. Notes | | 3.125 | | 09/15/26 | | EUR | 200 | | | | 195,545 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | 370,099 | |
| | | | |
| Mexico 1.3% | | | | | | | | | | | | |
| | | | |
| Petroleos Mexicanos, | | | | | | | | | | | | |
| Gtd. Notes | | 3.625 | | 11/24/25 | | EUR | 200 | | | | 200,207 | |
| Gtd. Notes, EMTN | | 4.875 | | 02/21/28 | | EUR | 200 | | | | 192,588 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | 392,795 | |
| | | | |
| Netherlands 2.0% | | | | | | | | | | | | |
| | | | |
| Cooperatieve Rabobank UA, | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, GMTN | | 3.500 | | 12/14/26 | | AUD | 100 | | | | 67,081 | |
| OCI NV, | | | | | | | | | | | | |
| Sr. Sec’d. Notes | | 3.625 | | 10/15/25 | | EUR | 135 | | | | 145,547 | |
| United Group BV, | | | | | | | | | | | | |
| Sr. Sec’d. Notes, 144A | | 3.125 | | 02/15/26 | | EUR | 200 | | | | 187,668 | |
| Ziggo Bond Co. BV, | | | | | | | | | | | | |
| Gtd. Notes, 144A | | 3.375 | | 02/28/30 | | EUR | 200 | | | | 175,649 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | 575,945 | |
| | | | |
| Peru 0.3% | | | | | | | | | | | | |
| | | | |
| Peru Enhanced Pass-Through Finance Ltd., | | | | | | | | | | | | |
| Pass-Through Certificates | | 1.963(s) | | 06/02/25 | | | 97 | | | | 91,457 | |
| | | | |
| Poland 0.9% | | | | | | | | | | | | |
| | | | |
| Bank Gospodarstwa Krajowego, | | | | | | | | | | | | |
| Gov’t. Gtd. Notes | | 1.625 | | 04/30/28 | | EUR | 250 | | | | 255,424 | |
See Notes to Financial Statements.
PGIM International Bond Fund 13
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
| | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | Maturity
Date | | | Principal Amount (000)# | | | Value | |
| | | | |
| CORPORATE BONDS (Continued) | | | | | | | | | | | | | | |
| | | | |
| Russia 0.4% | | | | | | | | | | | | | | |
| | | | |
| Gazprom PJSC Via Gaz Capital SA, | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | 1.450% | | | 03/06/23 | | | CHF | 200 | | | $ | 61,681 | |
| Sr. Unsec’d. Notes | | 2.500 | | | 03/21/26 | | | EUR | 200 | | | | 58,022 | |
| Russian Railways Via RZD Capital PLC, | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | 0.898 | | | 10/03/25 | (d) | | CHF | 100 | | | | 5,140 | |
| Sr. Unsec’d. Notes | | 7.487 | | | 03/25/31 | | | GBP | 100 | | | | 6,287 | |
| | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | 131,130 | |
| | | | |
| Spain 0.4% | | | | | | | | | | | | | | |
| | | | |
| Cellnex Finance Co. SA, | | | | | | | | | | | | | | |
| Gtd. Notes, EMTN | | 2.000 | | | 02/15/33 | | | EUR | 100 | | | | 82,855 | |
| Codere Finance 2 Luxembourg SA, | | | | | | | | | | | | | | |
| Sr. Sec’d. Notes, 144A, Cash coupon 8.000% and PIK 3.000% | | 11.000 | | | 09/30/26 | (d) | | EUR | 35 | | | | 39,567 | |
| | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | 122,422 | |
| | | | |
| Supranational Bank 0.4% | | | | | | | | | | | | | | |
| | | | |
| European Bank for Reconstruction & Development, | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, GMTN | | 6.450 | | | 12/13/22 | | | IDR | 408,000 | | | | 28,253 | |
| European Investment Bank, | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, 144A, EMTN | | 5.400 | | | 01/05/45 | | | CAD | 100 | | | | 95,584 | |
| | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | 123,837 | |
| | | | |
| United Arab Emirates 1.0% | | | | | | | | | | | | | | |
| | | | |
| Abu Dhabi National Energy Co. PJSC, | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, GMTN | | 2.750 | | | 05/02/24 | | | EUR | 100 | | | | 108,162 | |
| DP World PLC, | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | 4.250 | | | 09/25/30 | | | GBP | 100 | | | | 128,507 | |
| Emirates NBD Bank PJSC, | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, MTN | | 4.750 | | | 02/09/28 | | | AUD | 100 | | | | 70,894 | |
| | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | 307,563 | |
| | | | |
| United Kingdom 5.0% | | | | | | | | | | | | | | |
| | | | |
| Barclays PLC, | | | | | | | | | | | | | | |
| Sub. Notes, EMTN | | 2.000(ff) | | | 02/07/28 | | | EUR | 100 | | | | 105,487 | |
| Bellis Acquisition Co. PLC, | | | | | | | | | | | | | | |
| Sr. Sec’d. Notes, 144A | | 3.250 | | | 02/16/26 | | | GBP | 100 | | | | 110,272 | |
| Bellis Finco PLC, | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, 144A | | 4.000 | | | 02/16/27 | | | GBP | 100 | | | | 104,763 | |
See Notes to Financial Statements.
14
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal Amount (000)# | | | Value | |
| | | | |
| CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
| United Kingdom (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
| Co-operative Group Ltd., | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 5.125% | | | | 05/17/24 | | | GBP | 100 | | | $ | 121,881 | |
| eG Global Finance PLC, | | | | | | | | | | | | | | | | |
| Sr. Sec’d. Notes | | | 6.250 | | | | 10/30/25 | | | EUR | 100 | | | | 103,132 | |
| Sr. Sec’d. Notes, 144A | | | 6.250 | | | | 10/30/25 | | | EUR | 100 | | | | 103,132 | |
| HSBC Holdings PLC, | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, EMTN | | | 3.350(ff) | | | | 02/16/24 | | | AUD | 200 | | | | 141,837 | |
| InterContinental Hotels Group PLC, | | | | | | | | | | | | | | | | |
| Gtd. Notes, EMTN | | | 1.625 | | | | 10/08/24 | | | EUR | 200 | | | | 209,877 | |
| Market Bidco Finco PLC, | | | | | | | | | | | | | | | | |
| Sr. Sec’d. Notes, 144A | | | 5.500 | | | | 11/04/27 | | | GBP | 100 | | | | 111,913 | |
| Pinewood Finance Co. Ltd., | | | | | | | | | | | | | | | | |
| Sr. Sec’d. Notes, 144A | | | 3.250 | | | | 09/30/25 | | | GBP | 100 | | | | 120,622 | |
| Tesco PLC, | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, EMTN | | | 5.000 | | | | 03/24/23 | | | GBP | 80 | | | | 102,725 | |
| Virgin Media Secured Finance PLC, | | | | | | | | | | | | | | | | |
| Sr. Sec’d. Notes | | | 5.000 | | | | 04/15/27 | | | GBP | 100 | | | | 122,995 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 1,458,636 | |
| | | | |
| United States 6.0% | | | | | | | | | | | | | | | | |
| | | | |
| American International Group, Inc., | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 1.875 | | | | 06/21/27 | | | EUR | 100 | | | | 103,547 | |
| American Medical Systems Europe BV, | | | | | | | | | | | | | | | | |
| Gtd. Notes | | | 1.625 | | | | 03/08/31 | | | EUR | 100 | | | | 98,328 | |
| Ardagh Packaging Finance PLC/Ardagh Holdings | | | | | | | | | | | | | | | | |
| USA, Inc., | | | | | | | | | | | | | | | | |
| Sr. Sec’d. Notes | | | 2.125 | | | | 08/15/26 | | | EUR | 150 | | | | 141,507 | |
| Avantor Funding, Inc., | | | | | | | | | | | | | | | | |
| Sr. Sec’d. Notes | | | 2.625 | | | | 11/01/25 | | | EUR | 150 | | | | 154,456 | |
| Banff Merger Sub, Inc., | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 8.375 | | | | 09/01/26 | | | EUR | 100 | | | | 104,046 | |
| Broadcom, Inc., | | | | | | | | | | | | | | | | |
| Gtd. Notes, 144A | | | 3.500 | | | | 02/15/41 | | | | 30 | | | | 23,380 | |
| Citigroup, Inc., | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, GMTN | | | 2.210 | | | | 08/23/22 | | | HKD | 1,000 | | | | 127,512 | |
| Goldman Sachs Group, Inc. (The), | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, EMTN | | | 0.000(cc) | | | | 08/12/25 | | | EUR | 100 | | | | 102,157 | |
| JPMorgan Chase Bank, NA, | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 4.762(s) | | | | 03/17/48 | | | ITL(jj) | 100,000 | | | | 13,150 | |
| Morgan Guaranty Trust Co., | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 1.388(s) | | | | 01/21/27 | | | ITL(jj) | 50,000 | | | | 23,949 | |
See Notes to Financial Statements.
PGIM International Bond Fund 15
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
| | | | | | | | | | | | |
| Description | | Interest Rate | | Maturity Date | | Principal Amount (000)# | | | Value | |
| | | | |
| CORPORATE BONDS (Continued) | | | | | | | | | | | | |
| | | | |
| United States (cont’d.) | | | | | | | | | | | | |
| | | | |
| Morgan Stanley, | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, GMTN | | 1.875% | | 03/06/30 | | EUR | 100 | | | $ | 99,836 | |
| Mozart Debt Merger Sub, Inc., | | | | | | | | | | | | |
| Sr. Sec’d. Notes, 144A | | 3.875 | | 04/01/29 | | | 25 | | | | 21,858 | |
| MPT Operating Partnership LP/MPT Finance Corp., | | | | | | | | | | | | |
| Gtd. Notes | | 3.375 | | 04/24/30 | | GBP | 150 | | | | 168,166 | |
| Realty Income Corp., | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | 2.200 | | 06/15/28 | | | 5 | | | | 4,471 | |
| Sr. Unsec’d. Notes | | 2.850 | | 12/15/32 | | | 5 | | | | 4,447 | |
| Spectrum Brands, Inc., | | | | | | | | | | | | |
| Gtd. Notes | | 4.000 | | 10/01/26 | | EUR | 100 | | | | 104,023 | |
| Stryker Corp., | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | 2.625 | | 11/30/30 | | EUR | 100 | | | | 107,366 | |
| UGI International LLC, | | | | | | | | | | | | |
| Gtd. Notes, 144A | | 2.500 | | 12/01/29 | | EUR | 100 | | | | 86,118 | |
| Verizon Communications, Inc., | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | 1.250 | | 04/08/30 | | EUR | 100 | | | | 97,039 | |
| Vistra Corp., | | | | | | | | | | | | |
| Jr. Sub. Notes, 144A | | 7.000(ff) | | 12/15/26(oo) | | | 25 | | | | 24,333 | |
| Jr. Sub. Notes, 144A | | 8.000(ff) | | 10/15/26(oo) | | | 50 | | | | 50,309 | |
| Zimmer Biomet Holdings, Inc., | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | 2.425 | | 12/13/26 | | EUR | 100 | | | | 106,661 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | 1,766,659 | |
| | | | | | | | | | | | |
| | | | |
| TOTAL CORPORATE BONDS
(cost $10,245,796) | | | | | | | | | | | 8,539,843 | |
| | | | | | | | | | | | |
| | | |
| RESIDENTIAL MORTGAGE-BACKED SECURITIES 1.8% | | | | | | | | | | |
| | | | |
| Bermuda 0.4% | | | | | | | | | | | | |
| | | | |
| Bellemeade Re Ltd., | | | | | | | | | | | | |
| Series 2021-01A, Class M1A, 144A, 30 Day Average SOFR + 1.750% (Cap N/A, Floor1.750%) | | 2.039(c) | | 03/25/31 | | | 121 | | | | 121,035 | |
| | | | |
| Ireland 0.2% | | | | | | | | | | | | |
| | | | |
| Retiro Mortgage Securities DAC, | | | | | | | | | | | | |
| Series 01A, Class A1, 144A, 3 Month EURIBOR + 2.000% (Cap 5.000%, Floor 0.000%) | | 1.555(c) | | 07/30/75 | | EUR | 62 | | | | 65,583 | |
See Notes to Financial Statements.
16
| | | | | | | | | | | | |
| Description | | Interest Rate | | Maturity Date | | Principal Amount (000)# | | | Value | |
| | | |
| RESIDENTIAL MORTGAGE-BACKED SECURITIES (Continued) | | | | | | | | | | |
| | | | |
| United States 1.2% | | | | | | | | | | | | |
| Connecticut Avenue Securities Trust, | | | | | | | | | | | | |
| Series 2022-R04, Class 1B1, 144A, 30 Day Average SOFR + 5.250% (Cap N/A, Floor0.000%) | | 5.539%(c) | | 03/25/42 | | | 10 | | | $ | 9,943 | |
| FHLMC Structured Agency Credit Risk Debt Notes, | | | | | | | | | | | | |
| Series 2020-HQA05, Class B1, 144A, 30 Day Average SOFR + 4.000% (Cap N/A, Floor 0.000%) | | 4.289(c) | | 11/25/50 | | | 10 | | | | 9,714 | |
| Series 2020-HQA05, Class M2, 144A, 30 Day Average SOFR + 2.600% (Cap N/A, Floor 0.000%) | | 2.889(c) | | 11/25/50 | | | 45 | | | | 45,407 | |
| FHLMC Structured Agency Credit Risk REMIC Trust, | | | | | | | | | | | | |
| Series 2022-DNA03, Class M1B, 144A, 30 Day Average SOFR + 2.900% (Cap N/A, Floor 0.000%) | | 3.151(c) | | 04/25/42 | | | 30 | | | | 30,054 | |
| Legacy Mortgage Asset Trust, | | | | | | | | | | | | |
| Series 2020-GS01, Class A1, 144A | | 2.882 | | 10/25/59 | | | 75 | | | | 74,598 | |
| PMT Credit Risk Transfer Trust, | | | | | | | | | | | | |
| Series 2020-02R, Class A, 144A, 1 Month LIBOR + 3.815% (Cap N/A, Floor3.815%) | | 4.513(c) | | 12/25/22 | | | 87 | | | | 87,069 | |
| PNMAC GMSR Issuer Trust, | | | | | | | | | | | | |
| Series 2018-GT02, Class A, 144A, 1 Month LIBOR + 2.650% (Cap N/A, Floor 0.000%) | | 3.318(c) | | 08/25/25 | | | 100 | | | | 99,070 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | 355,855 | |
| | | | | | | | | | | | |
| | | | |
| TOTAL RESIDENTIAL MORTGAGE-BACKED SECURITIES
(cost $552,556) | | | | | | | | | | | 542,473 | |
| | | | | | | | | | | | |
| | | | |
| SOVEREIGN BONDS 49.2% | | | | | | | | | | | | |
| | | | |
| Belgium 1.6% | | | | | | | | | | | | |
| | | | |
| Kingdom of Belgium Government Bond, | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, Series 73, 144A, Series 73 | | 3.000 | | 06/22/34 | | EUR | 400 | | | | 487,266 | |
| | | | |
| Brazil 1.5% | | | | | | | | | | | | |
| | | | |
| Brazil Loan Trust 1, | | | | | | | | | | | | |
| Gov’t. Gtd. Notes | | 5.477 | | 07/24/23 | | | 35 | | | | 35,737 | |
| Brazil Minas SPE via State of Minas Gerais, | | | | | | | | | | | | |
| Gov’t. Gtd. Notes | | 5.333 | | 02/15/28 | | | 390 | | | | 395,599 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | 431,336 | |
See Notes to Financial Statements.
PGIM International Bond Fund 17
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
| | | | | | | | | | | | |
| Description | | Interest Rate | | Maturity Date | | Principal Amount (000)# | | | Value | |
| | | | |
| SOVEREIGN BONDS (Continued) | | | | | | | | | | | | |
| | | | |
| Bulgaria 0.4% | | | | | | | | | | | | |
| | | | |
| Bulgaria Government International Bond, | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, GMTN | | 3.125% | | 03/26/35 | | EUR | 115 | | | $ | 120,898 | |
| | | | |
| Canada 0.7% | | | | | | | | | | | | |
| | | | |
| City of Toronto, | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | 3.500 | | 06/02/36 | | CAD | 100 | | | | 73,835 | |
| Province of Nova Scotia, | | | | | | | | | | | | |
| Unsec’d. Notes | | 3.450 | | 06/01/45 | | CAD | 100 | | | | 72,506 | |
| Province of Saskatchewan, | | | | | | | | | | | | |
| Unsec’d. Notes | | 2.750 | | 12/02/46 | | CAD | 100 | | | | 64,269 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | 210,610 | |
| | | | |
| China 4.3% | | | | | | | | | | | | |
| | | | |
| China Government Bond, | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | 3.900 | | 07/04/36 | | CNH | 1,000 | | | | 160,426 | |
| Sr. Unsec’d. Notes | | 3.950 | | 06/29/43 | | CNH | 500 | | | | 80,646 | |
| China Government International Bond, | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | 0.250 | | 11/25/30 | | EUR | 100 | | | | 91,253 | |
| Export-Import Bank of China (The), | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | 4.400 | | 05/14/24 | | CNH | 6,000 | | | | 928,001 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | 1,260,326 | |
| | | | |
| Colombia 2.2% | | | | | | | | | | | | |
| | | | |
| Colombia Government International Bond, | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, EMTN | | 3.875 | | 03/22/26 | | EUR | 600 | | | | 637,473 | |
| | | | |
| Croatia 0.7% | | | | | | | | | | | | |
| | | | |
| Croatia Government International Bond, | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | 2.700 | | 06/15/28 | | EUR | 200 | | | | 215,210 | |
| | | | |
| Cyprus 2.2% | | | | | | | | | | | | |
| | | | |
| Cyprus Government International Bond, | | | | | | | | | | | | |
| Notes, EMTN | | 1.500 | | 04/16/27 | | EUR | 200 | | | | 208,675 | |
| Sr. Unsec’d. Notes, EMTN | | 2.375 | | 09/25/28 | | EUR | 200 | | | | 216,262 | |
| Sr. Unsec’d. Notes, EMTN | | 2.750 | | 02/26/34 | | EUR | 200 | | | | 212,025 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | 636,962 | |
See Notes to Financial Statements.
18
| | | | | | | | | | | | |
| Description | | Interest Rate | | Maturity Date | | Principal Amount (000)# | | | Value | |
| | | | |
| SOVEREIGN BONDS (Continued) | | | | | | | | | | | | |
| | | | |
| France 0.3% | | | | | | | | | | | | |
| | | | |
| Caisse Francaise de Financement Local, | | | | | | | | | | | | |
| Covered Bonds, EMTN | | 4.680% | | 03/09/29 | | CAD | 100 | | | $ | 82,274 | |
| | | | |
| Greece 2.8% | | | | | | | | | | | | |
| | | | |
| Hellenic Republic Government Bond, | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, 144A | | 1.875 | | 02/04/35 | | EUR | 744 | | | | 664,121 | |
| Sr. Unsec’d. Notes, 144A | | 1.875 | | 01/24/52 | | EUR | 110 | | | | 76,925 | |
| Hellenic Republic Government International Bond, | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | 5.200 | | 07/17/34 | | EUR | 60 | | | | 71,146 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | 812,192 | |
| | | | |
| Hong Kong 0.3% | | | | | | | | | | | | |
| | | | |
| Hong Kong Government International Bond, | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, GMTN | | 1.000 | | 11/24/41 | | EUR | 100 | | | | 83,674 | |
| | | | |
| Hungary 0.3% | | | | | | | | | | | | |
| | | | |
| Hungary Government International Bond, | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | 1.750 | | 06/05/35 | | EUR | 100 | | | | 86,275 | |
| | | | |
| Indonesia 3.6% | | | | | | | | | | | | |
| | | | |
| Indonesia Government International Bond, | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | 0.900 | | 02/14/27 | | EUR | 100 | | | | 97,827 | |
| Sr. Unsec’d. Notes | | 1.400 | | 10/30/31 | | EUR | 100 | | | | 91,253 | |
| Sr. Unsec’d. Notes | | 1.450 | | 09/18/26 | | EUR | 300 | | | | 304,578 | |
| Sr. Unsec’d. Notes | | 1.750 | | 04/24/25 | | EUR | 200 | | | | 209,466 | |
| Sr. Unsec’d. Notes, EMTN | | 2.150 | | 07/18/24 | | EUR | 140 | | | | 149,005 | |
| Sr. Unsec’d. Notes, EMTN | | 3.750 | | 06/14/28 | | EUR | 200 | | | | 221,692 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | 1,073,821 | |
| | | | |
| Israel 0.7% | | | | | | | | | | | | |
| | | | |
| Israel Government International Bond, | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, EMTN | | 1.500 | | 01/16/29 | | EUR | 200 | | | | 207,875 | |
| | | | |
| Italy 8.2% | | | | | | | | | | | | |
| | | | |
| Italy Buoni Poliennali Del Tesoro, | | | | | | | | | | | | |
| Bonds, 144A | | 2.800 | | 03/01/67 | | EUR | 150 | | | | 140,571 | |
| Sr. Unsec’d. Notes, 144A | | 1.450 | | 03/01/36 | | EUR | 145 | | | | 128,412 | |
| Sr. Unsec’d. Notes, 144A | | 3.350 | | 03/01/35 | | EUR | 340 | | | | 377,795 | |
| Region of Lazio, | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | 3.088 | | 03/31/43 | | EUR | 88 | | | | 90,337 | |
See Notes to Financial Statements.
PGIM International Bond Fund 19
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
| | | | | | | | | | | | | | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal
Amount (000)# | | | Value | |
| | | | |
| SOVEREIGN BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
| Italy (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
| Repubic of Italy Government International Bond Coupon Strips, | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 1.643%(s) | | | | 02/20/31 | | | EUR | 134 | | | $ | 107,815 | |
| Republic of Italy Government International Bond, | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 2.875 | | | | 10/17/29 | | | | 200 | | | | 182,426 | |
| Sr. Unsec’d. Notes, EMTN | | | 5.345 | | | | 01/27/48 | | | EUR | 50 | | | | 69,158 | |
| Sr. Unsec’d. Notes, EMTN | | | 6.000 | | | | 08/04/28 | | | GBP | 205 | | | | 297,379 | |
| Sr. Unsec’d. Notes, MTN | | | 5.125 | | | | 07/31/24 | | | EUR | 875 | | | | 1,002,367 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 2,396,260 | |
| | | | |
| Kazakhstan 0.4% | | | | | | | | | | | | | | | | |
| | | | |
| Kazakhstan Government International Bond, | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, EMTN | | | 2.375 | | | | 11/09/28 | | | EUR | 115 | | | | 111,614 | |
| | | | |
| Lithuania 0.4% | | | | | | | | | | | | | | | | |
| | | | |
| Lithuania Government International Bond, | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, EMTN | | | 2.125 | | | | 10/22/35 | | | EUR | 100 | | | | 108,816 | |
| | | | |
| Mexico 1.3% | | | | | | | | | | | | | | | | |
| | | | |
| Mexico Government International Bond, | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 2.875 | | | | 04/08/39 | | | EUR | 100 | | | | 85,578 | |
| Sr. Unsec’d. Notes, EMTN | | | 1.750 | | | | 04/17/28 | | | EUR | 300 | | | | 289,922 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 375,500 | |
| | | | |
| New Zealand 0.1% | | | | | | | | | | | | | | | | |
| | | | |
| New Zealand Local Government Funding Agency Bond, | | | | | | | | | | | | | | | | |
| Local Gov’t. Gtd. Notes | | | 2.000 | | | | 04/15/37 | | | NZD | 100 | | | | 46,461 | |
| | | | |
| Peru 1.6% | | | | | | | | | | | | | | | | |
| | | | |
| Peruvian Government International Bond, | | | | | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | | 2.750 | | | | 01/30/26 | | | EUR | 100 | | | | 106,991 | |
| Sr. Unsec’d. Notes | | | 3.750 | | | | 03/01/30 | | | EUR | 300 | | | | 333,542 | |
| Sr. Unsec’d. Notes | | | 6.900 | | | | 08/12/37 | | | PEN | 100 | | | | 23,181 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 463,714 | |
See Notes to Financial Statements.
20
| | | | | | | | | | | | |
| Description | | Interest Rate | | Maturity Date | | Principal Amount (000)# | | | Value | |
| | | | |
| SOVEREIGN BONDS (Continued) | | | | | | | | | | | | |
| | | | |
| Philippines 1.3% | | | | | | | | | | | | |
| | | | |
| Philippine Government International Bond, | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | 0.700% | | 02/03/29 | | EUR | 300 | | | $ | 281,198 | |
| Sr. Unsec’d. Notes, EMTN | | 0.875 | | 05/17/27 | | EUR | 100 | | | | 98,902 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | 380,100 | |
| | | | |
| Portugal 3.6% | | | | | | | | | | | | |
| | | | |
| Portugal Government International Bond, | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | 4.090 | | 06/03/22 | | CNH | 600 | | | | 90,385 | |
| Portugal Obrigacoes do Tesouro OT, | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, 144A | | 4.100 | | 04/15/37 | | EUR | 515 | | | | 674,220 | |
| Sr. Unsec’d. Notes, 144A | | 4.100 | | 02/15/45 | | EUR | 150 | | | | 207,007 | |
| Unsec’d. Notes, 144A | | 1.000 | | 04/12/52 | | EUR | 105 | | | | 74,872 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | 1,046,484 | |
| | | | |
| Romania 1.3% | | | | | | | | | | | | |
| | | | |
| Romanian Government International Bond, | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, 144A, MTN | | 2.125 | | 03/07/28 | | EUR | 120 | | | | 114,493 | |
| Sr. Unsec’d. Notes, 144A, MTN | | 2.500 | | 02/08/30 | | EUR | 100 | | | | 91,330 | |
| Sr. Unsec’d. Notes, EMTN | | 3.500 | | 04/03/34 | | EUR | 50 | | | | 43,648 | |
| Sr. Unsec’d. Notes, EMTN | | 3.875 | | 10/29/35 | | EUR | 100 | | | | 89,199 | |
| Unsec’d. Notes, 144A, MTN | | 2.124 | | 07/16/31 | | EUR | 40 | | | | 33,398 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | 372,068 | |
| | | | |
| Russia 0.2% | | | | | | | | | | | | |
| | | | |
| Russian Foreign Bond - Eurobond, | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | 2.875 | | 12/04/25 | | EUR | 200 | | | | 52,747 | |
| | | | |
| Saudi Arabia 0.4% | | | | | | | | | | | | |
| | | | |
| Saudi Government International Bond, | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, 144A | | 2.000 | | 07/09/39 | | EUR | 125 | | | | 113,777 | |
| | | | |
| Serbia 0.8% | | | | | | | | | | | | |
| | | | |
| Serbia International Bond, | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | 3.125 | | 05/15/27 | | EUR | 250 | | | | 236,952 | |
| | | | |
| Spain 6.9% | | | | | | | | | | | | |
| | | | |
| Autonomous Community of Catalonia, | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, EMTN | | 6.350 | | 11/30/41 | | EUR | 50 | | | | 75,839 | |
See Notes to Financial Statements.
PGIM International Bond Fund 21
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
| | | | | | | | | | | | |
| Description | | Interest Rate | | Maturity Date | | Principal Amount (000)# | | | Value | |
| | | | |
| SOVEREIGN BONDS (Continued) | | | | | | | | | | | | |
| | | | |
| Spain (cont’d.) | | | | | | | | | | | | |
| | | | |
| Instituto de Credito Oficial, | | | | | | | | | | | | |
| Gov’t. Gtd. Notes, GMTN | | 0.963% | | 09/22/22 | | SEK | 1,000 | | | $ | 101,901 | |
| Spain Government Bond, | | | | | | | | | | | | |
| Bonds, 144A | | 5.150 | | 10/31/28(k) | | EUR | 185 | | | | 239,765 | |
| Sr. Unsec’d. Notes, 144A | | 0.500 | | 04/30/30 | | EUR | 25 | | | | 24,168 | |
| Sr. Unsec’d. Notes, 144A | | 1.000 | | 10/31/50(k) | | EUR | 310 | | | | 228,527 | |
| Sr. Unsec’d. Notes, 144A | | 1.400 | | 04/30/28(k) | | EUR | 70 | | | | 73,832 | |
| Sr. Unsec’d. Notes, 144A | | 1.850 | | 07/30/35(k) | | EUR | 325 | | | | 331,200 | |
| Sr. Unsec’d. Notes, 144A | | 3.450 | | 07/30/66 | | EUR | 50 | | | | 60,715 | |
| Spain Government International Bond, | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, EMTN | | 5.250 | | 04/06/29 | | GBP | 615 | | | | 895,792 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | 2,031,739 | |
| | | | |
| Ukraine 0.3% | | | | | | | | | | | | |
| | | | |
| Ukraine Government International Bond, | | | | | | | | | | | | |
| Sr. Unsec’d. Notes | | 6.750 | | 06/20/26 | | EUR | 300 | | | | 101,275 | |
| | | | |
| United Kingdom 0.8% | | | | | | | | | | | | |
| | | | |
| Transport for London, | | | | | | | | | | | | |
| Sr. Unsec’d. Notes, EMTN | | 3.875 | | 07/23/42 | | GBP | 100 | | | | 130,774 | |
| United Kingdom Gilt, | | | | | | | | | | | | |
| Bonds | | 0.625 | | 07/31/35 | | GBP | 70 | | | | 73,274 | |
| Bonds | | 4.250 | | 12/07/46 | | GBP | 20 | | | | 35,537 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | 239,585 | |
| | | | | | | | | | | | |
| | | | |
| TOTAL SOVEREIGN BONDS
(cost $17,150,980) | | | | | | | | | | | 14,423,284 | |
| | | | | | | | | | | | |
| | | | |
| TOTAL LONG-TERM INVESTMENTS
(cost $31,357,294) | | | | | | | | | | | 26,765,431 | |
| | | | | | | | | | | | |
See Notes to Financial Statements.
22
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| SHORT-TERM INVESTMENTS 4.3% | | | | | | | | |
| | |
| UNAFFILIATED FUND 4.2% | | | | | | | | |
| Dreyfus Government Cash Management (Institutional Shares) | | | | | | | | |
| (cost $1,229,954) | | | 1,229,954 | | | $ | 1,229,954 | |
| | |
| OPTIONS PURCHASED*~ 0.1% | | | | | | | | |
| (cost $6,300) | | | | | | | 18,675 | |
| | | | | | | | |
| | |
| TOTAL SHORT-TERM INVESTMENTS | | | | | | | | |
| (cost $1,236,254) | | | | | | | 1,248,629 | |
| | | | | | | | |
| | |
| TOTAL INVESTMENTS, BEFORE OPTION WRITTEN 95.5% | | | | | | | | |
| (cost $32,593,548) | | | | | | | 28,014,060 | |
| | | | | | | | |
| | |
| OPTIONS WRITTEN*~ (0.1)% | | | | | | | | |
| (premiums received $7,500) | | | | | | | (21,513 | ) |
| | | | | | | | |
| | |
| TOTAL INVESTMENTS, NET OF OPTION WRITTEN 95.4% | | | | | | | | |
| (cost $32,586,048) | | | | | | | 27,992,547 | |
| Other assets in excess of liabilities(z) 4.6% | | | | | | | 1,344,804 | |
| | | | | | | | |
| | |
| NET ASSETS 100.0% | | | | | | $ | 29,337,351 | |
| | | | | | | | |
Below is a list of the abbreviation(s) used in the semiannual report:
AUD—Australian Dollar
BRL—Brazilian Real
CAD—Canadian Dollar
CHF—Swiss Franc
CLP—Chilean Peso
CNH—Chinese Renminbi
COP—Colombian Peso
CZK—Czech Koruna
EUR—Euro
GBP—British Pound
HKD—Hong Kong Dollar
HUF—Hungarian Forint
IDR—Indonesian Rupiah
ILS—IsraeliShekel
ITL—Italian Lira
JPY—JapaneseYen
KRW—South Korean Won
MXN—MexicanPeso
MYR—Malaysian Ringgit
NOK—Norwegian Krone
NZD—New Zealand Dollar
PEN—Peruvian Nuevo Sol
PLN—Polish Zloty
SAR—Saudi Arabian Riyal
SEK—SwedishKrona
SGD—Singapore Dollar
See Notes to Financial Statements.
PGIM International Bond Fund 23
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
THB—Thai Baht
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 beresold except to qualified institutional buyers.
A—Annual payment frequency for swaps
BBR—New Zealand Bank Bill Rate
BBSW—Australian Bank Bill Swap Reference Rate
BROIS—Brazil Overnight Index Swap
BUBOR—Budapest Interbank Offered Rate
CDOR—Canadian Dollar Offered Rate
CDX—CreditDerivative Index
CLO—Collateralized Loan Obligation
CLOIS—Sinacofi Chile Interbank Rate Average
CME—Chicago Mercantile Exchange
COOIS—Colombia Overnight Interbank Reference Rate
CPI—Consumer Price Index
EMTN—Euro MediumTerm Note
EURIBOR—Euro Interbank Offered Rate
EuroSTR—Euro Short-Term Rate
FHLMC—FederalHome Loan Mortgage Corporation
GMTN—Global Medium Term Note
HICP—Harmonised Index of Consumer Prices
IO—Interest Only (Principal amount represents notional)
iTraxx—International Credit Derivative Index
JIBAR—Johannesburg Interbank Agreed Rate
KLIBOR—Kuala Lumpur Interbank Offered Rate
KWCDC—Korean Won Certificate of Deposit
LIBOR—London Interbank Offered Rate
LP—Limited Partnership
M—Monthly paymentfrequency for swaps
MTN—Medium Term Note
NIBOR—Norwegian Interbank Offered Rate
OAT—Obligations Assimilables du Tresor
OTC—Over-the-counter
PIK—Payment-in-Kind
PJSC—Public Joint-Stock Company
PRIBOR—Prague Interbank Offered Rate
Q—Quarterly payment frequency for swaps
S—Semiannual payment frequency for swaps
SAIBOR—Saudi Arabian Interbank Offered Rate
SARON—Swiss Average Rate Overnight
SOFR—Secured Overnight Financing Rate
SONIA—Sterling Overnight Index Average
SORA—Singapore Overnight Rate Average
STIBOR—Stockholm Interbank Offered Rate
STRIPs—Separate Trading of Registered Interest and Principal of Securities
T—Swap payment upon termination
TELBOR—TelAviv Interbank Offered Rate
THBFIX—Thai Baht Interest Rate Fixing
TONAR—Tokyo Overnight Average Rate
USOIS—United States Overnight Index Swap
See Notes to Financial Statements.
24
WIBOR—Warsaw Interbank Offered Rate
| * | 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. |
| (c) | Variable rate instrument. The interest rate shown reflects the rate in effect at April 30, 2022. |
| (cc) | Variable rate instrument. The rate shown is based on the latest available information as of April 30, 2022. Certainvariable 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. |
| (ff) | Variable rate security. Security may be issued at a fixed coupon rate, which converts to a variable rate at a specifieddate. Rate shown is the rate in effect as of period end. |
| (jj) | Represents original contract currency denomination, settlement to occur in Euro currency. |
| (k) | Represents security, or a portion thereof, segregated as collateral for centrally cleared/exchange-traded derivatives. |
| (oo) | Perpetual security. Maturity date represents next call date. |
| (s) | Represents zero coupon bond or principal only security. Rate represents yield to maturity at purchase date. |
| (z) | Includes net unrealized appreciation/(depreciation) and/or market value of the below holdings which are excluded from theSchedule of Investments: |
Options Purchased:
OTCSwaptions
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Description | | Call/
Put | | | Counterparty | | Expiration
Date | | | Strike | | | Receive | | | Pay | | | Notional Amount (000)# | | | Value | |
| | | | | | | | |
| 2- Year Interest Rate Swap, 05/21/25 | | | Call | | | Deutsche Bank AG | | | 05/17/23 | | | | 2.05% | | | | 2.05%(A) | | |
| 3 Month
SAIBOR(Q) |
| | SAR | 1,875 | | | $ | 105 | |
| 2- Year Interest Rate Swap, 05/21/25 | | | Put | | | Deutsche Bank AG | | | 05/17/23 | | | | 2.05% | | |
| 3 Month
SAIBOR(Q) |
| | | 2.05%(A) | | | SAR | 1,875 | | | | 18,570 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| Total Options Purchased (cost $6,300) | | | | | | | | | | | | | | | | | | | | | | $ | 18,675 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Option Written:
OTC Swaptions
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Description | | Call/
Put | | | Counterparty | | Expiration
Date | | Strike | | | Receive | | | Pay | | | Notional
Amount
(000)# | | | Value | |
| | | | | | | | |
| 2- Year Interest Rate Swap, 05/19/25 | | | Call | | | Deutsche Bank AG | | 05/17/23 | | | 1.13% | | |
| 3 Month
LIBOR(Q |
) | | | 1.13%(S) | | | | 500 | | | $ | (485 | ) |
| 2- Year Interest Rate Swap, 05/19/25 | | | Put | | | Deutsche Bank AG | | 05/17/23 | | | 1.13% | | | | 1.13%(S) | | |
| 3 Month
LIBOR(Q) |
| | | 500 | | | | (21,028 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| Total Options Written (premiums received $7,500) | | | | | | | | | | | | | | | | | | $ | (21,513 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
See Notes to Financial Statements.
PGIM International Bond Fund 25
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Futures contracts outstanding at April 30, 2022:
| | | | | | | | | | | | | | | | | | | | | | |
| Number of
Contracts | | Type | | Expiration
Date | | | Current
Notional
Amount | | | Value / Unrealized Appreciation (Depreciation) | |
| | | | | |
| Long Positions: | | | | | | | | | | | | | | | | | | | | |
| 11 | | 2 Year U.S. Treasury Notes | | | Jun. 2022 | | | $ | 2,318,937 | | | | | | | $ | (13,735 | ) | | | | |
| 2 | | 10 Year Canadian Government Bonds | | | Jun. 2022 | | | | 196,723 | | | | | | | | (14,761 | ) | | | | |
| 2 | | 30 Year U.S. Ultra Treasury Bonds | | | Jun. 2022 | | | | 320,875 | | | | | | | | (16,112 | ) | | | | |
| 8 | | Euro-OAT | | | Jun. 2022 | | | | 1,230,831 | | | | | | | | (80,014 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | | | | | | | | | | | | | | | | (124,622 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| Short Positions: | | | | | | | | | | | | | | | | | | | | |
| 3 | | 3 Month CME SOFR | | | Jun. 2022 | | | | 746,081 | | | | | | | | 4,063 | | | | | |
| 25 | | 5 Year Euro-Bobl | | | Jun. 2022 | | | | 3,354,214 | | | | | | | | 147,214 | | | | | |
| 6 | | 5 Year U.S. Treasury Notes | | | Jun. 2022 | | | | 676,031 | | | | | | | | (2,869 | ) | | | | |
| 37 | | 10 Year Euro-Bund | | | Jun. 2022 | | | | 5,995,102 | | | | | | | | 372,291 | | | | | |
| 6 | | 10 Year U.K. Gilt | | | Jun. 2022 | | | | 893,594 | | | | | | | | 22,783 | | | | | |
| 10 | | 10 Year U.S. Treasury Notes | | | Jun. 2022 | | | | 1,191,563 | | | | | | | | 8,075 | | | | | |
| 4 | | 10 Year U.S. Ultra Treasury Notes | | | Jun. 2022 | | | | 516,000 | | | | | | | | 21,135 | | | | | |
| 20 | | British Pound Currency | | | Jun. 2022 | | | | 1,574,875 | | | | | | | | 64,782 | | | | | |
| 143 | | Euro Currency | | | Jun. 2022 | | | | 18,927,837 | | | | | | | | 590,072 | | | | | |
| 23 | | Euro Schatz Index | | | Jun. 2022 | | | | 2,672,542 | | | | | | | | 28,803 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | | | | | | | | | | | | | | | | 1,256,349 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | | | | | | | | | | | | | | | $ | 1,131,727 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Forward foreign currency exchange contracts outstanding at April 30, 2022:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Purchase Contracts | | Counterparty | | Notional
Amount
(000) | | | Value at
Settlement
Date | | | Current
Value | | | Unrealized
Appreciation | | | Unrealized
Depreciation |
|
| OTC Forward Foreign Currency Exchange Contracts: | |
| Australian Dollar, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 07/19/22 | | JPMorgan Chase Bank, N.A. | | AUD | 26 | | | $ | 18,266 | | | $ | 18,162 | | | | | | | $ | — | | | | | | | $ | (104 | ) |
| Brazilian Real, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 05/03/22 | | Citibank, N.A. | | BRL | 279 | | | | 59,384 | | | | 56,311 | | | | | | | | — | | | | | | | | (3,073 | ) |
| Expiring 05/03/22 | | JPMorgan Chase Bank, N.A. | | BRL | 1,501 | | | | 309,558 | | | | 303,215 | | | | | | | | — | | | | | | | | (6,343 | ) |
| Expiring 05/03/22 | | Morgan Stanley & Co.
International PLC | | BRL | 41 | | | | 8,392 | | | | 8,244 | | | | | | | | — | | | | | | | | (148 | ) |
| Expiring 06/02/22 | | Citibank, N.A. | | BRL | 1,485 | | | | 312,974 | | | | 296,923 | | | | | | | | — | | | | | | | | (16,051 | ) |
| British Pound, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 05/06/22 | | HSBC Bank PLC | | GBP | 1,271 | | | | 1,616,984 | | | | 1,597,968 | | | | | | | | — | | | | | | | | (19,016 | ) |
| Expiring 05/06/22 | | Morgan Stanley & Co.
International PLC | | GBP | 243 | | | | 315,834 | | | | 305,052 | | | | | | | | — | | | | | | | | (10,782 | ) |
| Expiring 07/19/22 | | Morgan Stanley & Co.
International PLC | | GBP | 64 | | | | 80,165 | | | | 80,273 | | | | | | | | 108 | | | | | | | | — | |
| Canadian Dollar, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 07/19/22 | | JPMorgan Chase Bank, N.A. | | CAD | 44 | | | | 34,211 | | | | 34,032 | | | | | | | | — | | | | | | | | (179 | ) |
See Notes to Financial Statements.
26
Forward foreign currency exchange contracts outstanding at April 30, 2022 (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.): | | | | | | | | | | | | | | | | | |
| Chilean Peso, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 06/15/22 | | Morgan Stanley & Co. International PLC | | CLP | 88,759 | | | $ | 109,141 | | | $ | 103,084 | | | | | | | $ | — | | | | | | | $ | (6,057 | ) | | | | |
| Chinese Renminbi, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 05/23/22 | | Citibank, N.A. | | CNH | 359 | | | | 53,962 | | | | 53,892 | | | | | | | | — | | | | | | | | (70 | ) | | | | |
| Expiring 05/23/22 | | Morgan Stanley & Co. International PLC | | CNH | 220 | | | | 34,607 | | | | 32,986 | | | | | | | | — | | | | | | | | (1,621 | ) | | | | |
| Colombian Peso, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 06/15/22 | | BNP Paribas S.A. | | COP | 154,780 | | | | 40,234 | | | | 38,794 | | | | | | | | — | | | | | | | | (1,440 | ) | | | | |
| Expiring 06/15/22 | | JPMorgan Chase Bank, N.A. | | COP | 139,095 | | | | 36,243 | | | | 34,863 | | | | | | | | — | | | | | | | | (1,380 | ) | | | | |
| Euro, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 05/06/22 | | Bank of America, N.A. | | EUR | 108 | | | | 118,445 | | | | 113,550 | | | | | | | | — | | | | | | | | (4,895 | ) | | | | |
| Expiring 05/06/22 | | HSBC Bank PLC | | EUR | 163 | | | | 176,282 | | | | 172,530 | | | | | | | | — | | | | | | | | (3,752 | ) | | | | |
| Expiring 05/06/22 | | JPMorgan Chase Bank, N.A. | | EUR | 563 | | | | 607,845 | | | | 594,214 | | | | | | | | — | | | | | | | | (13,631 | ) | | | | |
| Expiring 05/06/22 | | Morgan Stanley & Co. International PLC | | EUR | 39 | | | | 44,021 | | | | 41,617 | | | | | | | | — | | | | | | | | (2,404 | ) | | | | |
| Expiring 06/02/22 | | HSBC Bank PLC | | EUR | 123 | | | | 130,842 | | | | 129,614 | | | | | | | | — | | | | | | | | (1,228 | ) | | | | |
| Expiring 06/02/22 | | Morgan Stanley & Co. International PLC | | EUR | 169 | | | | 177,932 | | | | 178,528 | | | | | | | | 596 | | | | | | | | — | | | | | |
| Expiring 06/02/22 | | The Toronto-Dominion Bank | | EUR | 541 | | | | 578,445 | | | | 571,314 | | | | | | | | — | | | | | | | | (7,131 | ) | | | | |
| Expiring 07/19/22 | | Morgan Stanley & Co. International PLC | | EUR | 218 | | | | 231,404 | | | | 231,455 | | | | | | | | 51 | | | | | | | | — | | | | | |
| Hungarian Forint, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 07/19/22 | | Barclays Bank PLC | | HUF | 36,173 | | | | 102,487 | | | | 99,772 | | | | | | | | — | | | | | | | | (2,715 | ) | | | | |
| Israeli Shekel, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 06/15/22 | | Barclays Bank PLC | | ILS | 32 | | | | 9,959 | | | | 9,657 | | | | | | | | — | | | | | | | | (302 | ) | | | | |
| Expiring 06/15/22 | | HSBC Bank PLC | | ILS | 86 | | | | 26,903 | | | | 25,725 | | | | | | | | — | | | | | | | | (1,178 | ) | | | | |
| Japanese Yen, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 05/06/22 | | JPMorgan Chase Bank, N.A. | | JPY | 17,440 | | | | 136,083 | | | | 134,417 | | | | | | | | — | | | | | | | | (1,666 | ) | | | | |
| Expiring 05/06/22 | | Morgan Stanley & Co. International PLC | | JPY | 25,474 | | | | 201,058 | | | | 196,339 | | | | | | | | — | | | | | | | | (4,719 | ) | | | | |
| Expiring 05/06/22 | | Morgan Stanley & Co. International PLC | | JPY | 7,343 | | | | 57,997 | | | | 56,598 | | | | | | | | — | | | | | | | | (1,399 | ) | | | | |
| Mexican Peso, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 06/15/22 | | JPMorgan Chase Bank, N.A. | | MXN | 569 | | | | 27,774 | | | | 27,612 | | | | | | | | — | | | | | | | | (162 | ) | | | | |
| New Zealand Dollar, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 07/19/22 | | Morgan Stanley & Co. International PLC | | NZD | 28 | | | | 18,017 | | | | 17,916 | | | | | | | | — | | | | | | | | (101 | ) | | | | |
| Norwegian Krone, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 07/19/22 | | Morgan Stanley & Co. International PLC | | NOK | 533 | | | | 60,507 | | | | 56,854 | | | | | | | | — | | | | | | | | (3,653 | ) | | | | |
| Polish Zloty, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 07/19/22 | | Goldman Sachs International | | PLN | 114 | | | | 25,337 | | | | 25,353 | | | | | | | | 16 | | | | | | | | — | | | | | |
See Notes to Financial Statements.
PGIM International Bond Fund 27
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Forward foreign currency exchange contracts outstanding at April 30, 2022 (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.): | | | | | | | | | | | | | | | | | | | | | |
| Polish Zloty (cont’d.), | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 07/19/22 | | HSBC Bank PLC | | | PLN | | | | 188 | | | $ | 43,527 | | | $ | 41,906 | | | | | $ | — | | | | | $ | (1,621 | ) |
| Expiring 07/19/22 | | HSBC Bank PLC | | | PLN | | | | 159 | | | | 36,582 | | | | 35,412 | | | | | | — | | | | | | (1,170 | ) |
| Singapore Dollar, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 06/15/22 | | HSBC Bank PLC | | | SGD | | | | 26 | | | | 19,337 | | | | 18,923 | | | | | | — | | | | | | (414 | ) |
| South African Rand, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 06/15/22 | | HSBC Bank PLC | | | ZAR | | | | 313 | | | | 20,974 | | | | 19,693 | | | | | | — | | | | | | (1,281 | ) |
| South Korean Won, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 06/15/22 | | Barclays Bank PLC | | | KRW | | | | 30,964 | | | | 25,468 | | | | 24,515 | | | | | | — | | | | | | (953 | ) |
| Expiring 06/15/22 | | Citibank, N.A. | | | KRW | | | | 28,440 | | | | 23,147 | | | | 22,516 | | | | | | — | | | | | | (631 | ) |
| Expiring 06/15/22 | | Morgan Stanley & Co. International PLC | | | KRW | | | | 19,133 | | | | 15,177 | | | | 15,147 | | | | | | — | | | | | | (30 | ) |
| Swiss Franc, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 07/19/22 | | BNP Paribas S.A. | | | CHF | | | | 35 | | | | 35,730 | | | | 35,663 | | | | | | — | | | | | | (67 | ) |
| Thai Baht, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 06/15/22 | | BNP Paribas S.A. | | | THB | | | | 663 | | | | 19,359 | | | | 19,377 | | | | | | 18 | | | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | | | $ | 6,000,594 | | | $ | 5,880,016 | | | | | | 789 | | | | | | (121,367 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Sale Contracts | | Counterparty | | Notional
Amount
(000) | | | Value at
Settlement
Date | | | Current
Value | | | Unrealized
Appreciation | | Unrealized
Depreciation |
| | | | |
| OTC Forward Foreign Currency Exchange Contracts: | | | | | | | | | | | | | | | | | |
| Australian Dollar, | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 07/19/22 | | BNP Paribas S.A. | | | AUD | | | | 402 | | | $ | 299,168 | | | $ | 284,232 | | | $ | 14,936 | | | $ | — | |
| Brazilian Real, | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 05/03/22 | | BNP Paribas S.A. | | | BRL | | | | 180 | | | | 38,722 | | | | 36,292 | | | | 2,430 | | | | — | |
| Expiring 05/03/22 | | BNP Paribas S.A. | | | BRL | | | | 156 | | | | 32,200 | | | | 31,584 | | | | 616 | | | | — | |
| Expiring 05/03/22 | | Citibank, N.A. | | | BRL | | | | 1,485 | | | | 315,924 | | | | 299,894 | | | | 16,030 | | | | — | |
| British Pound, | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 05/06/22 | | Morgan Stanley & Co. International PLC | | | GBP | | | | 1,513 | | | | 1,996,521 | | | | 1,903,020 | | | | 93,501 | | | | — | |
| Expiring 06/06/22 | | HSBC Bank PLC | | | GBP | | | | 1,271 | | | | 1,616,936 | | | | 1,598,032 | | | | 18,904 | | | | — | |
| Canadian Dollar, | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 07/19/22 | | Barclays Bank PLC | | | CAD | | | | 680 | | | | 538,922 | | | | 529,381 | | | | 9,541 | | | | — | |
| Chilean Peso, | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 06/15/22 | | Citibank, N.A. | | | CLP | | | | 16,028 | | | | 20,000 | | | | 18,615 | | | | 1,385 | | | | — | |
| Expiring 06/15/22 | | Morgan Stanley & Co. International PLC | | | CLP | | | | 67,160 | | | | 85,215 | | | | 77,999 | | | | 7,216 | | | | — | |
| Chinese Renminbi, | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 05/23/22 | | Citibank, N.A. | | | CNH | | | | 527 | | | | 82,288 | | | | 79,107 | | | | 3,181 | | | | — | |
| Expiring 05/23/22 | | JPMorgan Chase Bank, N.A. | | | CNH | | | | 9,686 | | | | 1,516,592 | | | | 1,455,264 | | | | 61,328 | | | | — | |
See Notes to Financial Statements.
28
Forward foreign currency exchange contracts outstanding at April 30, 2022 (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.): | | | |
| Euro, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 05/06/22 | | Deutsche Bank AG | | | | | EUR | | | | 77 | | | $ | 83,975 | | | $ | 81,594 | | | | | $ | 2,381 | | | | | | | $ | — | | | |
| Expiring 05/06/22 | | Morgan Stanley & Co. International PLC | | | | | EUR | | | | 86 | | | | 95,909 | | | | 90,558 | | | | | | 5,351 | | | | | | | | — | | | |
| Expiring 05/06/22 | | Morgan Stanley & Co. International PLC | | | | | EUR | | | | 62 | | | | 67,607 | | | | 65,278 | | | | | | 2,329 | | | | | | | | — | | | |
| Expiring 05/06/22 | | The Toronto-Dominion Bank | | | | | EUR | | | | 541 | | | | 577,770 | | | | 570,593 | | | | | | 7,177 | | | | | | | | — | | | |
| Expiring 05/06/22 | | The Toronto-Dominion Bank | | | | | EUR | | | | 108 | | | | 119,278 | | | | 113,888 | | | | | | 5,390 | | | | | | | | — | | | |
| Hong Kong Dollar, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 05/23/22 | | BNP Paribas S.A. | | | | | HKD | | | | 1,026 | | | | 131,620 | | | | 130,871 | | | | | | 749 | | | | | | | | — | | | |
| Indonesian Rupiah, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 06/15/22 | | Goldman Sachs International | | | | | IDR | | | | 2,724,990 | | | | 190,107 | | | | 186,446 | | | | | | 3,661 | | | | | | | | — | | | |
| Japanese Yen, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 05/06/22 | | Deutsche Bank AG | | | | | JPY | | | | 5,807 | | | | 47,395 | | | | 44,757 | | | | | | 2,638 | | | | | | | | — | | | |
| Expiring 05/06/22 | | Morgan Stanley & Co. International PLC | | | | | JPY | | | | 44,451 | | | | 365,036 | | | | 342,597 | | | | | | 22,439 | | | | | | | | — | | | |
| Expiring 06/02/22 | | JPMorgan Chase Bank, N.A. | | | | | JPY | | | | 17,440 | | | | 136,196 | | | | 134,544 | | | | | | 1,652 | | | | | | | | — | | | |
| Expiring 07/19/22 | | HSBC Bank PLC | | | | | JPY | | | | 2,041 | | | | 15,798 | | | | 15,781 | | | | | | 17 | | | | | | | | — | | | |
| New Zealand Dollar, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 07/19/22 | | JPMorgan Chase Bank, N.A. | | | | | NZD | | | | 79 | | | | 53,832 | | | | 50,898 | | | | | | 2,934 | | | | | | | | — | | | |
| Peruvian Nuevo Sol, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 06/15/22 | | BNP Paribas S.A. | | | | | PEN | | | | 93 | | | | 24,450 | | | | 24,005 | | | | | | 445 | | | | | | | | — | | | |
| Singapore Dollar, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 06/15/22 | | Morgan Stanley & Co. International PLC | | | | | SGD | | | | 30 | | | | 22,058 | | | | 21,703 | | | | | | 355 | | | | | | | | — | | | |
| South African Rand, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 06/15/22 | | Barclays Bank PLC | | | | | ZAR | | | | 335 | | | | 22,059 | | | | 21,078 | | | | | | 981 | | | | | | | | — | | | |
| Expiring 06/15/22 | | Barclays Bank PLC | | | | | ZAR | | | | 281 | | | | 18,154 | | | | 17,685 | | | | | | 469 | | | | | | | | — | | | |
| Expiring 06/15/22 | | Barclays Bank PLC | | | | | ZAR | | | | 187 | | | | 12,070 | | | | 11,758 | | | | | | 312 | | | | | | | | — | | | |
| Expiring 06/15/22 | | Citibank, N.A. | | | | | ZAR | | | | 335 | | | | 21,994 | | | | 21,078 | | | | | | 916 | | | | | | | | — | | | |
| Swedish Krona, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 07/19/22 | | Bank of America, N.A. | | | | | SEK | | | | 1,008 | | | | 106,882 | | | | 102,887 | | | | | | 3,995 | | | | | | | | — | | | |
| Swiss Franc, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expiring 07/19/22 | | Barclays Bank PLC | | | | | CHF | | | | 260 | | | | 279,442 | | | | 268,127 | | | | | | 11,315 | | | | | | | | — | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | $ | 8,934,120 | | | $ | 8,629,546 | | | | | | 304,574 | | | | | | | | — | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | $ | 305,363 | | | | | | | $ | (121,367 | ) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
See Notes to Financial Statements.
PGIM International Bond Fund 29
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Credit default swap agreements outstanding at April 30, 2022:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 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 - BuyProtection(1): |
| Gazprom PAO | | 03/20/23 | | 1.000%(Q) | | | 110 | | | | | $ | 54,236 | | | | | | | $ | 55,195 | | | | | | | $ | (959 | ) | | | | Barclays Bank PLC |
| Gazprom PAO | | 03/20/23 | | 1.000%(Q) | | | 110 | | | | | | 54,236 | | | | | | | | 54,181 | | | | | | | | 55 | | | | | Barclays Bank PLC |
| Russian Federation | | 12/20/31 | | 1.000%(Q) | | | 300 | | | | | | 195,650 | | | | | | | | 203,872 | | | | | | | | (8,222 | ) | | | | HSBC Bank PLC |
| Russian Federation | | 12/20/31 | | 1.000%(Q) | | | 120 | | | | | | 78,260 | | | | | | | | 54,305 | | | | | | | | 23,955 | | | | | HSBC Bank PLC |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | $ | 382,382 | | | | | | | $ | 367,553 | | | | | | | $ | 14,829 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Reference Entity/ Obligation | | Termination
Date | | Fixed Rate | | Notional
Amount
(000)#(3) | | | Implied
Credit
Spread at
April 30,
2022(4) | | | Fair
Value | | Upfront
Premiums
Paid
(Received) | | Unrealized Appreciation (Depreciation) | | Counterparty |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
| OTC Credit Default Swap Agreements on corporate and/or sovereign issues - SellProtection(2): |
| Devon Energy Corp. | | 06/20/22 | | 1.000%(Q) | | | 150 | | | | 0.511% | | | $ | 277 | | | $ | 117 | | | | | $ | 160 | | | | | Barclays Bank PLC |
| DP World PLC | | 12/20/24 | | 1.000%(Q) | | | 100 | | | | 0.773% | | | | 694 | | | | 248 | | | | | | 446 | | | | | Barclays Bank PLC |
| Electricite de France S.A. | | 12/20/22 | | 1.000%(Q) | | EUR | 60 | | | | 0.487% | | | | 286 | | | | 363 | | | | | | (77 | ) | | | | Goldman Sachs International |
| EQT Corp. | | 06/20/22 | | 5.000%(Q) | | | 30 | | | | 0.941% | | | | 350 | | | | 149 | | | | | | 201 | | | | | Credit Suisse International |
| General Electric Co. | | 06/20/22 | | 1.000%(Q) | | | 110 | | | | 0.266% | | | | 245 | | | | 107 | | | | | | 138 | | | | | Morgan Stanley & Co. International PLC |
| Generalitat de Cataluna | | 12/20/22 | | 1.000%(Q) | | | 110 | | | | * | | | | 539 | | | | (2,017 | ) | | | | | 2,556 | | | | | Citibank, N.A. |
| Halliburton Co. | | 12/20/26 | | 1.000%(Q) | | | 30 | | | | 0.871% | | | | 202 | | | | 267 | | | | | | (65 | ) | | | | Goldman Sachs International |
| Hellenic Republic | | 12/20/27 | | 1.000%(Q) | | | 140 | | | | 1.601% | | | | (4,072 | ) | | | 520 | | | | | | (4,592 | ) | | | | Barclays Bank PLC |
| HESS Corp. | | 06/20/22 | | 1.000%(Q) | | | 200 | | | | 0.407% | | | | 398 | | | | 181 | | | | | | 217 | | | | | Goldman Sachs International |
| Naturgy Energy Group S.A. | | 06/20/22 | | 1.000%(Q) | | EUR | 200 | | | | 0.504% | | | | 398 | | | | 286 | | | | | | 112 | | | | | Goldman Sachs International |
| Republic of Estonia | | 12/20/26 | | 1.000%(Q) | | | 20 | | | | 0.657% | | | | 321 | | | | 176 | | | | | | 145 | | | | | JPMorgan Chase Bank, N.A. |
| Republic of Hungary | | 06/20/22 | | 1.000%(Q) | | | 450 | | | | 0.434% | | | | 880 | | | | (76 | ) | | | | | 956 | | | | | Citibank, N.A. |
| Republic of Indonesia | | 06/20/23 | | 1.000%(Q) | | | 220 | | | | 0.318% | | | | 1,960 | | | | (322 | ) | | | | | 2,282 | | | | | Citibank, N.A. |
See Notes to Financial Statements.
30
Credit default swap agreements outstanding at April 30, 2022 (continued):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Reference Entity/ Obligation | | Termination
Date | | Fixed Rate | | Notional
Amount
(000)#(3) | | | Implied
Credit
Spread at
April 30,
2022(4) | | | Fair Value | | Upfront Premiums
Paid (Received) | | Unrealized Appreciation (Depreciation) | | Counterparty |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| OTC Credit Default Swap Agreements on corporate and/or sovereign issues - SellProtection(2)(cont’d.): |
| Republic of Ireland | | 06/20/27 | | 1.000%(Q) | | | 100 | | | | 0.169% | | | | | $ | 4,128 | | | | | | | $ | 1,293 | | | | | | | $ | 2,835 | | | | | Morgan Stanley & Co. International PLC |
| Republic of Italy | | 06/20/23 | | 1.000%(Q) | | | 350 | | | | 0.338% | | | | | | 3,037 | | | | | | | | (4,468 | ) | | | | | | | 7,505 | | | | | Bank of America, N.A. |
| Republic of Kazakhstan | | 06/20/23 | | 1.000%(Q) | | | 115 | | | | 0.965% | | | | | | 177 | | | | | | | | — | | | | | | | | 177 | | | | | Citibank, N.A. |
| Republic of Panama | | 06/20/22 | | 1.000%(Q) | | | 100 | | | | 0.379% | | | | | | 203 | | | | | | | | 24 | | | | | | | | 179 | | | | | Citibank, N.A. |
| Republic of Panama | | 12/20/26 | | 1.000%(Q) | | | 80 | | | | 1.128% | | | | | | (346 | ) | | | | | | | 214 | | | | | | | | (560 | ) | | | | Citibank, N.A. |
| Republic of Portugal | | 12/20/23 | | 1.000%(Q) | | | 100 | | | | 0.170% | | | | | | 1,466 | | | | | | | | (18 | ) | | | | | | | 1,484 | | | | | Morgan Stanley & Co. International PLC |
| Republic of South Africa | | 12/20/23 | | 1.000%(Q) | | | 400 | | | | 1.350% | | | | | | (1,803 | ) | | | | | | | (7,057 | ) | | | | | | | 5,254 | | | | | Bank of America, N.A. |
| Republic of Ukraine | | 12/20/23 | | 5.000%(Q) | | | 100 | | | | 126.719% | | | | | | (59,905 | ) | | | | | | | 2,346 | | | | | | | | (62,251 | ) | | | | Deutsche Bank AG |
| Republic of Ukraine | | 06/20/25 | | 5.000%(Q) | | | 30 | | | | 93.392% | | | | | | (18,761 | ) | | | | | | | (211 | ) | | | | | | | (18,550 | ) | | | | Barclays Bank PLC |
| Republic of Ukraine | | 12/20/25 | | 5.000%(Q) | | | 85 | | | | 87.604% | | | | | | (53,671 | ) | | | | | | | (1,292 | ) | | | | | | | (52,379 | ) | | | | Barclays Bank PLC |
| Russian Federation | | 12/20/30 | | 1.000%(Q) | | | 300 | | | | 45.176% | | | | | | (195,162 | ) | | | | | | | (204,254 | ) | | | | | | | 9,092 | | | | | HSBC Bank PLC |
| Russian Federation | | 12/20/30 | | 1.000%(Q) | | | 120 | | | | 45.176% | | | | | | (78,065 | ) | | | | | | | (54,498 | ) | | | | | | | (23,567 | ) | | | | HSBC Bank PLC |
| Simon Property Group LP | | 06/20/26 | | 1.000%(Q) | | | 80 | | | | 0.894% | | | | | | 422 | | | | | | | | 769 | | | | | | | | (347 | ) | | | | Goldman Sachs International |
| State of Illinois | | 12/20/22 | | 1.000%(Q) | | | 100 | | | | 0.455% | | | | | | 466 | | | | | | | | (507 | ) | | | | | | | 973 | | | | | Citibank, N.A. |
| State of Illinois | | 12/20/24 | | 1.000%(Q) | | | 100 | | | | 0.682% | | | | | | 915 | | | | | | | | (2,622 | ) | | | | | | | 3,537 | | | | | Goldman Sachs International |
| Teck Resources Ltd. | | 06/20/26 | | 5.000%(Q) | | | 100 | | | | 1.219% | | | | | | 15,111 | | | | | | | | 15,547 | | | | | | | | (436 | ) | | | | Barclays Bank PLC |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | $ | (379,310 | ) | | | | | | $ | (254,735 | ) | | | | | | $ | (124,575 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
See Notes to Financial Statements.
PGIM International Bond Fund 31
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Credit default swap agreements outstanding at April 30, 2022 (continued):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Reference Entity/ Obligation | | Termination
Date | | Fixed
Rate | | | Notional
Amount
(000)#(3) | | | Implied Credit
Spread at
April 30,
2022(4) | | Value at Trade Date | | Value at April 30, 2022 | | | Unrealized Appreciation (Depreciation) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| Centrally Cleared Credit Default Swap Agreement on credit indices - SellProtection(2): | | | | | | | | | | | | | | | | | | | |
| iTraxx.XO.36.V1 | | 12/20/26 | | | 5.000%(Q) | | | EUR | 1,000 | | | 4.004% | | | | $ | 101,832 | | | | | $ | 47,817 | | | | | | | $ | (54,015 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Reference Entity/ Obligation | | Termination
Date | | Fixed
Rate | | | Notional
Amount
(000)#(3) | | | Implied
Credit
Spread at
April 30,
2022(4) | | Fair Value | | Upfront Premiums Paid (Received) | | Unrealized Appreciation (Depreciation) | | Counterparty |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| OTC Credit Default Swap Agreement on credit indices - Sell Protection(2): |
| CDX.NA.HY.BB.36.V1 | | 06/20/26 | | | 5.000%(Q) | | | | 100 | | | 2.547% | | | | $ | 9,616 | | | | | | | $ | 12,744 | | | | | | | $ | (3,128 | ) | | | | Citibank, N.A. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The Fund entered into credit default swaps (“CDS”) to provide a measure of protection against defaults or to take an activelong 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 theprotection 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.
| (1) | If the Fund is a buyer of protection, it pays the fixed rate. When a credit event occurs, as defined under the terms ofthat 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 referencedindex 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 termsof 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 referencedindex 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 protectionor 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 swapagreements 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 creditspread 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 adeterioration of the |
See Notes to Financial Statements.
32
| | 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 creditindices 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 creditderivative 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 referencedentity’s credit soundness and a greater likelihood of risk of default or other credit event occurring as defined under the terms of the agreement. |
Currency swap agreement outstanding at April 30, 2022:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Notional Amount (000)# | | Fund Receives | | Notional Amount (000)# | | | Fund Pays | | Counterparty | | Termination Date | | Fair Value | | | Upfront Premiums Paid (Received) | | Unrealized Appreciation (Depreciation) | |
| | | | | | | | | | | | | | | | | | | | |
|
| OTC Currency Swap Agreement: | |
| IDR | | 2,000,000 | | 8.22%(S) | | | 138 | | | 6 Month LIBOR(S) | | Citibank, N.A. | | 11/29/23 | | $ | 8,992 | | | | | $ | — | | | | | | | | | $ | 8,992 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Inflation swap agreements outstanding at April 30, 2022:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Notional Amount (000)# | | Termination
Date | | | Fixed
Rate | | | Floating Rate | | Value at Trade Date | | Value at
April 30,
2022 | | | Unrealized Appreciation (Depreciation) |
| |
| Centrally Cleared Inflation Swap Agreements: | | | |
| EUR 200 | | | 05/15/23 | | | | 1.485%(T) | | | France CPI ex Tobacco Household(1)(T) | | | | $ | — | | | | | $ | 9,396 | | | | | | | $ | 9,396 | | | |
| EUR 200 | | | 05/15/23 | | | | 1.510%(T) | | | Eurostat Eurozone HICP ex Tobacco(2)(T) | | | | | — | | | | | | (18,508 | ) | | | | | | | (18,508 | ) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | | | | | $ | — | | | | | $ | (9,112 | ) | | | | | | $ | (9,112 | ) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | The Fund pays the fixed rate and receives the floating rate. |
| (2) | The Fund pays the floating rate and receives the fixed rate. |
Interest rate swap agreements outstanding at April 30, 2022:
| | | | | | | | | | | | | | | | | | | | | | | | |
| Notional Amount (000)# | | | Termination Date | | | Fixed Rate | | Floating Rate | | Value at Trade Date | | | Value at April 30, 2022 | | | Unrealized Appreciation (Depreciation) |
| | | | | | | | | | | | | | | | | |
|
| Centrally Cleared Interest Rate Swap Agreements: | |
| AUD | | | 560 | | | | 09/25/22 | | | 2.958%(S) | | 6 Month BBSW(2)(S) | | $ | — | | | $ | 4,616 | | | $ | 4,616 | |
| AUD | | | 350 | | | | 12/03/29 | | | 2.700%(S) | | 6 Month BBSW(2)(S) | | | 25,683 | | | | (11,432 | ) | | | (37,115 | ) |
| AUD | | | 150 | | | | 05/09/32 | | | 3.140%(S) | | 6 Month BBSW(2)(S) | | | (3 | ) | | | (2,687 | ) | | | (2,684 | ) |
| AUD | | | 165 | | | | 07/19/32 | | | 3.130%(S) | | 6 Month BBSW(2)(S) | | | (3 | ) | | | (3,753 | ) | | | (3,750 | ) |
| BRL | | | 6,910 | | | | 01/02/24 | | | 4.920%(T) | | 1 Day BROIS(2)(T) | | | — | | | | (172,764 | ) | | | (172,764 | ) |
| BRL | | | 287 | | | | 01/02/25 | | | 6.540%(T) | | 1 Day BROIS(2)(T) | | | — | | | | (5,431 | ) | | | (5,431 | ) |
| BRL | | | 1,710 | | | | 01/02/25 | | | 6.670%(T) | | 1 Day BROIS(2)(T) | | | — | | | | (29,947 | ) | | | (29,947 | ) |
| BRL | | | 657 | | | | 01/02/25 | | | 9.475%(T) | | 1 Day BROIS(2)(T) | | | — | | | | 17,079 | | | | 17,079 | |
| BRL | | | 724 | | | | 01/02/25 | | | 9.943%(T) | | 1 Day BROIS(2)(T) | | | — | | | | 27,023 | | | | 27,023 | |
See Notes to Financial Statements.
PGIM International Bond Fund 33
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Interest rate swap agreements outstanding at April 30, 2022 (continued):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Notional
Amount
(000)# | | | Termination
Date | | | Fixed
Rate | | Floating Rate | | Value at Trade Date | | Value at
April 30,
2022 | | | Unrealized
Appreciation
(Depreciation) | |
| | | | | | | | | | | | | | | | | |
| | | | | |
| | Centrally Cleared Interest Rate Swap Agreements (cont’d.): | | | | | | | | | | | | | | | | |
| | BRL | | | | 305 | | | | 01/02/25 | | | 11.080%(T) | | 1 Day BROIS(2)(T) | | | | $ | — | | | | | $ | 15,490 | | | $ | 15,490 | |
| | BRL | | | | 98 | | | | 01/02/25 | | | 12.090%(T) | | 1 Day BROIS(2)(T) | | | | | — | | | | | | 6,391 | | | | 6,391 | |
| | BRL | | | | 1,008 | | | | 01/04/27 | | | 6.490%(T) | | 1 Day BROIS(2)(T) | | | | | — | | | | | | (38,843 | ) | | | (38,843 | ) |
| | BRL | | | | 1,027 | | | | 01/04/27 | | | 6.493%(T) | | 1 Day BROIS(2)(T) | | | | | — | | | | | | (39,243 | ) | | | (39,243 | ) |
| | BRL | | | | 991 | | | | 01/04/27 | | | 6.820%(T) | | 1 Day BROIS(2)(T) | | | | | — | | | | | | (37,771 | ) | | | (37,771 | ) |
| | BRL | | | | 1,091 | | | | 01/02/29 | | | 7.250%(T) | | 1 Day BROIS(2)(T) | | | | | — | | | | | | (50,944 | ) | | | (50,944 | ) |
| | CAD | | | | 500 | | | | 09/03/25 | | | 0.733%(S) | | 3 Month CDOR(2)(S) | | | | | (1 | ) | | | | | (29,836 | ) | | | (29,835 | ) |
| | CAD | | | | 200 | | | | 12/03/28 | | | 2.600%(S) | | 3 Month CDOR(2)(S) | | | | | 1,306 | | | | | | (4,258 | ) | | | (5,564 | ) |
| | CAD | | | | 150 | | | | 05/30/47 | | | 2.240%(S) | | 3 Month CDOR(2)(S) | | | | | (7,178 | ) | | | | | (21,288 | ) | | | (14,110 | ) |
| | CHF | | | | 140 | | | | 01/31/29 | | | 0.260%(A) | | 1 Day SARON(2)(S) | | | | | (634 | ) | | | | | (7,753 | ) | | | (7,119 | ) |
| | CHF | | | | 80 | | | | 04/03/33 | | | 0.687%(A) | | 1 Day SARON(2)(S) | | | | | (481 | ) | | | | | (6,239 | ) | | | (5,758 | ) |
| | CLP | | | | 22,700 | | | | 11/17/30 | | | 2.420%(S) | | 1 Day CLOIS(2)(S) | | | | | — | | | | | | (7,294 | ) | | | (7,294 | ) |
| | CNH | | | | 800 | | | | 08/15/23 | | | 3.115%(Q) | | 7 Day China Fixing Repo Rates(2)(Q) | | | | | (3 | ) | | | | | 1,663 | | | | 1,666 | |
| | CNH | | | | 800 | | | | 03/13/24 | | | 2.945%(Q) | | 7 Day China Fixing Repo Rates(2)(Q) | | | | | (1 | ) | | | | | 1,686 | | | | 1,687 | |
| | CNH | | | | 1,400 | | | | 04/01/24 | | | 2.923%(Q) | | 7 Day China Fixing Repo Rates(2)(Q) | | | | | — | | | | | | 2,860 | | | | 2,860 | |
| | CNH | | | | 2,440 | | | | 06/20/24 | | | 2.900%(Q) | | 7 Day China Fixing Repo Rates(2)(Q) | | | | | 2 | | | | | | 5,158 | | | | 5,156 | |
| | CNH | | | | 2,300 | | | | 09/03/24 | | | 2.860%(Q) | | 7 Day China Fixing Repo Rates(2)(Q) | | | | | (3 | ) | | | | | 4,984 | | | | 4,987 | |
| | CNH | | | | 2,600 | | | | 10/10/24 | | | 2.860%(Q) | | 7 Day China Fixing Repo Rates(2)(Q) | | | | | (1 | ) | | | | | 5,444 | | | | 5,445 | |
| | CNH | | | | 1,780 | | | | 11/01/24 | | | 3.120%(Q) | | 7 Day China Fixing Repo Rates(2)(Q) | | | | | (6 | ) | | | | | 5,925 | | | | 5,931 | |
| | CNH | | | | 2,500 | | | | 02/04/25 | | | 2.600%(Q) | | 7 Day China Fixing Repo Rates(2)(Q) | | | | | — | | | | | | 3,243 | | | | 3,243 | |
| | CNH | | | | 3,900 | | | | 03/06/25 | | | 2.425%(Q) | | 7 Day China Fixing Repo Rates(2)(Q) | | | | | (7 | ) | | | | | 1,882 | | | | 1,889 | |
| | CNH | | | | 6,000 | | | | 03/12/25 | | | 2.400%(Q) | | 7 Day China Fixing Repo Rates(2)(Q) | | | | | (2 | ) | | | | | 2,059 | | | | 2,061 | |
| | CNH | | | | 2,880 | | | | 06/01/25 | | | 1.973%(Q) | | 7 Day China Fixing Repo Rates(2)(Q) | | | | | 2 | | | | | | (4,826 | ) | | | (4,828 | ) |
| | CNH | | | | 5,039 | | | | 08/06/25 | | | 2.555%(Q) | | 7 Day China Fixing Repo Rates(2)(Q) | | | | | (6 | ) | | | | | 4,919 | | | | 4,925 | |
| | CNH | | | | 11,480 | | | | 11/02/25 | | | 2.588%(Q) | | 7 Day China Fixing Repo Rates(2)(Q) | | | | | 23 | | | | | | 12,660 | | | | 12,637 | |
| | CNH | | | | 1,270 | | | | 04/12/26 | | | 2.810%(Q) | | 7 Day China Fixing Repo Rates(2)(Q) | | | | | (5 | ) | | | | | 2,714 | | | | 2,719 | |
| | COP | | | | 690,000 | | | | 04/20/26 | | | 4.190%(Q) | | 1 Day COOIS(2)(Q) | | | | | — | | | | | | (26,805 | ) | | | (26,805 | ) |
| | COP | | | | 907,840 | | | | 07/27/28 | | | 6.200%(Q) | | 1 Day COOIS(2)(Q) | | | | | 7,548 | | | | | | (26,713 | ) | | | (34,261 | ) |
| | CZK | | | | 3,300 | | | | 06/29/27 | | | 1.175%(A) | | 6 Month PRIBOR(2)(S) | | | | | (5,079 | ) | | | | | (24,827 | ) | | | (19,748 | ) |
See Notes to Financial Statements.
34
Interest rate swap agreements outstanding at April 30, 2022 (continued):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Notional Amount (000)# | | | Termination
Date | | | Fixed
Rate | | Floating Rate | | Value at Trade Date | | Value at
April 30,
2022 | | | Unrealized
Appreciation
(Depreciation) |
|
| Centrally Cleared Interest Rate Swap Agreements (cont’d.): | |
| EUR | | | 620 | | | | 05/11/22 | | | (0.250)%(A) | | 1 Day EuroSTR(2)(A)
| | | | $ | (81 | ) | | | | $ | 2,144 | | | $ | 2,225 | |
| EUR | | | 3,205 | | | | 11/23/24 | | | (0.046)%(A) | | 6 Month EURIBOR(2)(S)
| | | | | — | | | | | | (61,304 | ) | | | (61,304 | ) |
| EUR | | | 2,125 | | | | 12/02/24 | | | (0.285)%(A) | | 6 Month EURIBOR(2)(S)
| | | | | — | | | | | | (78,986 | ) | | | (78,986 | ) |
| EUR | | | 225 | | | | 04/27/30 | | | (0.016)%(A) | | 6 Month EURIBOR(2)(S) | | | | | — | | | | | | (29,414 | ) | | | (29,414 | ) |
| EUR | | | 171 | | | | 08/15/30 | | | (0.191)%(A) | | 1 Day EuroSTR(2)(A)
| | | | | (77 | ) | | | | | (20,937 | ) | | | (20,860 | ) |
| EUR | | | 1,335 | | | | 06/28/32 | | | 0.785%(A) | | 6 Month EURIBOR(2)(S)
| | | | | (68,725 | ) | | | | | (113,275 | ) | | | (44,550 | ) |
| EUR | | | 81 | | | | 11/12/36 | | | 0.610%(A) | | 6 Month EURIBOR(2)(S)
| | | | | — | | | | | | (4,267 | ) | | | (4,267 | ) |
| EUR | | | 165 | | | | 11/12/41 | | | 0.454%(A) | | 6 Month EURIBOR(1)(S)
| | | | | — | | | | | | 7,313 | | | | 7,313 | |
| EUR | | | 100 | | | | 11/24/41 | | | 0.565%(A) | | 6 Month EURIBOR(1)(S)
| | | | | — | | | | | | 10,891 | | | | 10,891 | |
| EUR | | | 100 | | | | 11/24/41 | | | 0.600%(A) | | 3 Month EURIBOR(2)(Q)
| | | | | — | | | | | | (11,542 | ) | | | (11,542 | ) |
| EUR | | | 242 | | | | 11/25/41 | | | 0.629%(A) | | 6 Month EURIBOR(1)(S)
| | | | | — | | | | | | 25,063 | | | | 25,063 | |
| EUR | | | 242 | | | | 11/25/41 | | | 0.663%(A) | | 3 Month EURIBOR(2)(Q)
| | | | | — | | | | | | (26,666 | ) | | | (26,666 | ) |
| EUR | | | 83 | | | | 11/12/51 | | | (0.012)%(A) | | 6 Month EURIBOR(2)(S) | | | | | — | | | | | | (1,907 | ) | | | (1,907 | ) |
| GBP | | | 60 | | | | 05/08/24 | | | 0.950%(A) | | 1 Day SONIA(1)(A) | | | | | 1,520 | | | | | | 1,340 | | | | (180 | ) |
| GBP | | | 50 | | | | 05/08/29 | | | 1.100%(A) | | 1 Day SONIA(2)(A) | | | | | 2,076 | | | | | | (3,422 | ) | | | (5,498 | ) |
| GBP | | | 190 | | | | 05/08/31 | | | 1.150%(A) | | 1 Day SONIA(2)(A) | | | | | 9,076 | | | | | | (13,276 | ) | | | (22,352 | ) |
| GBP | | | 100 | | | | 09/30/40 | | | 0.262%(A) | | 1 Day SONIA(2)(A) | | | | | (3,959 | ) | | | | | (30,035 | ) | | | (26,076 | ) |
| GBP | | | 525 | | | | 05/08/46 | | | 1.250%(A) | | 1 Day SONIA(2)(A) | | | | | 123,036 | | | | | | (56,448 | ) | | | (179,484 | ) |
| GBP | | | 50 | | | | 05/08/47 | | | 1.250%(A) | | 1 Day SONIA(1)(A) | | | | | 2,883 | | | | | | 5,769 | | | | 2,886 | |
| GBP | | | 80 | | | | 09/03/50 | | | 0.328%(A) | | 1 Day SONIA(2)(A) | | | | | (1 | ) | | | | | (30,581 | ) | | | (30,580 | ) |
| HUF | | | 95,000 | | | | 01/12/27 | | | 4.150%(A) | | 6 Month BUBOR(2)(S) | | | | | — | | | | | | (32,496 | ) | | | (32,496 | ) |
| HUF | | | 99,345 | | | | 06/12/28 | | | 3.750%(A) | | 6 Month BUBOR(2)(S) | | | | | — | | | | | | (33,707 | ) | | | (33,707 | ) |
| JPY | | | 100,000 | | | | 05/12/22 | | | 0.000%(S) | | 6 Month JPY LIBOR(2)(S) | | | | | (3 | ) | | | | | 206 | | | | 209 | |
| JPY | | | 100,000 | | | | 05/12/22 | | | 0.000%(A) | | 1 Day TONAR(1)(A) | | | | | 150 | | | | | | (167 | ) | | | (317 | ) |
| JPY | | | 90,000 | | | | 05/24/22 | | | 0.000%(S) | | 6 Month JPY LIBOR(2)(S) | | | | | (2 | ) | | | | | 188 | | | | 190 | |
| JPY | | | 90,000 | | | | 05/24/22 | | | 0.000%(A) | | 1 Day TONAR(1)(A) | | | | | 131 | | | | | | (139 | ) | | | (270 | ) |
| JPY | | | 57,765 | | | | 06/03/22 | | | 0.000%(S) | | 6 Month JPY LIBOR(2)(S) | | | | | — | | | | | | 114 | | | | 114 | |
| JPY | | | 57,765 | | | | 06/03/22 | | | 0.000%(A) | | 1 Day TONAR(1)(A) | | | | | 81 | | | | | | (82 | ) | | | (163 | ) |
See Notes to Financial Statements.
PGIM International Bond Fund 35
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Interest rate swap agreements outstanding at April 30, 2022 (continued):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Notional Amount (000)# | | | Termination Date | | | Fixed Rate | | | Floating Rate | | Value at Trade Date | | | Value at April 30, 2022 | | | Unrealized Appreciation (Depreciation) |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| Centrally Cleared Interest Rate Swap Agreements (cont’d.): | | | | | | | | | | | | | | | | | | |
| JPY | | | 301,250 | | | | 06/20/22 | | | | 0.000%(S) | | | 6 Month JPY LIBOR(2)(S) | | $ | (209 | ) | | $ | 571 | | | | | | | $ | 780 | | | |
| JPY | | | 301,250 | | | | 06/20/22 | | | | 0.000%(A) | | | 1 Day TONAR(1)(A) | | | 433 | | | | (240 | ) | | | | | | | (673 | ) | | |
| JPY | | | 115,000 | | | | 06/22/22 | | | | 0.000%(S) | | | 6 Month JPY LIBOR(2)(S) | | | (80 | ) | | | 204 | | | | | | | | 284 | | | |
| JPY | | | 45,000 | | | | 06/22/22 | | | | 0.000%(A) | | | 1 Day TONAR(1)(A) | | | 58 | | | | (52 | ) | | | | | | | (110 | ) | | |
| JPY | | | 70,000 | | | | 06/22/22 | | | | 0.000%(A) | | | 1 Day TONAR(1)(A) | | | 89 | | | | (83 | ) | | | | | | | (172 | ) | | |
| JPY | | | 46,500 | | | | 07/04/22 | | | | 0.000%(S) | | | 6 Month JPY LIBOR(2)(S) | | | (37 | ) | | | 6 | | | | | | | | 43 | | | |
| JPY | | | 46,500 | | | | 07/04/22 | | | | 0.000%(A) | | | 1 Day TONAR(1)(A) | | | 61 | | | | (30 | ) | | | | | | | (91 | ) | | |
| JPY | | | 301,250 | | | | 12/20/24 | | | | 0.126%(S) | | | 1 Day TONAR(2)(S) | | | (1,104 | ) | | | 44 | | | | | | | | 1,148 | | | |
| JPY | | | 46,500 | | | | 07/04/28 | | | | 0.282%(S) | | | 1 Day TONAR(2)(S) | | | (426 | ) | | | 402 | | | | | | | | 828 | | | |
| JPY | | | 100,000 | | | | 11/12/28 | | | | 0.011%(S) | | | 1 Day TONAR(2)(S) | | | 4 | | | | (14,267 | ) | | | | | | | (14,271 | ) | | |
| JPY | | | 57,765 | | | | 12/03/28 | | | | 0.200%(S) | | | 1 Day TONAR(2)(S) | | | (10 | ) | | | (2,530 | ) | | | | | | | (2,520 | ) | | |
| JPY | | | 70,000 | | | | 12/22/36 | | | | 0.641%(S) | | | 1 Day TONAR(2)(S) | | | (1,698 | ) | | | 4,117 | | | | | | | | 5,815 | | | |
| JPY | | | 95,000 | | | | 07/26/37 | | | | 0.676%(S) | | | 1 Day TONAR(2)(S) | | | (1,944 | ) | | | 7,292 | | | | | | | | 9,236 | | | |
| JPY | | | 35,000 | | | | 02/06/40 | | | | 0.223%(S) | | | 1 Day TONAR(2)(S) | | | (197 | ) | | | (21,433 | ) | | | | | | | (21,236 | ) | | |
| JPY | | | 45,000 | | | | 12/22/41 | | | | 0.731%(S) | | | 1 Day TONAR(2)(S) | | | (1,261 | ) | | | 728 | | | | | | | | 1,989 | | | |
| JPY | | | 90,000 | | | | 11/24/47 | | | | 0.888%(S) | | | 1 Day TONAR(2)(S) | | | (243 | ) | | | 10,757 | | | | | | | | 11,000 | | | |
| KRW | | | 75,700 | | | | 04/17/29 | | | | 1.740%(Q) | | | 3 Month KWCDC(2)(Q) | | | — | | | | (4,831 | ) | | | | | | | (4,831 | ) | | |
| KRW | | | 184,000 | | | | 04/27/30 | | | | 1.065%(Q) | | | 3 Month KWCDC(2)(Q) | | | — | | | | (20,332 | ) | | | | | | | (20,332 | ) | | |
| MXN | | | 6,545 | | | | 03/19/26 | | | | 6.050%(M) | | | 28 Day Mexican Interbank Rate(2)(M) | | | (11 | ) | | | (33,257 | ) | | | | | | | (33,246 | ) | | |
| MXN | | | 2,080 | | | | 06/11/27 | | | | 7.210%(M) | | | 28 Day Mexican Interbank Rate(2)(M) | | | 89 | | | | (7,862 | ) | | | | | | | (7,951 | ) | | |
| MXN | | | 4,020 | | | | 02/27/29 | | | | 8.260%(M) | | | 28 Day Mexican Interbank Rate(2)(M) | | | 688 | | | | (7,441 | ) | | | | | | | (8,129 | ) | | |
| NOK | | | 500 | | | | 02/07/29 | | | | 2.083%(A) | | | 6 Month NIBOR(2)(S) | | | 625 | | | | (2,647 | ) | | | | | | | (3,272 | ) | | |
| NZD | | | 470 | | | | 01/10/27 | | | | 3.420%(S) | | | 3 Month BBR(2)(Q) | | | — | | | | (3,756 | ) | | | | | | | (3,756 | ) | | |
| NZD | | | 70 | | | | 11/28/28 | | | | 2.950%(S) | | | 3 Month BBR(2)(Q) | | | 1,295 | | | | (2,090 | ) | | | | | | | (3,385 | ) | | |
| NZD | | | 90 | | | | 07/22/29 | | | | 1.768%(S) | | | 3 Month BBR(2)(Q) | | | — | | | | (7,649 | ) | | | | | | | (7,649 | ) | | |
| NZD | | | 80 | | | | 11/05/29 | | | | 1.393%(S) | | | 3 Month BBR(2)(Q) | | | — | | | | (8,310 | ) | | | | | | | (8,310 | ) | | |
| NZD | | | 220 | | | | 03/01/31 | | | | 2.098%(S) | | | 3 Month BBR(2)(Q) | | | 2,218 | | | | (19,166 | ) | | | | | | | (21,384 | ) | | |
| PLN | | | 330 | | | | 01/10/27 | | | | 3.030%(A) | | | 6 Month WIBOR(2)(S) | | | — | | | | (9,793 | ) | | | | | | | (9,793 | ) | | |
| PLN | | | 515 | | | | 04/27/31 | | | | 1.788%(A) | | | 6 Month WIBOR(2)(S) | | | — | | | | (33,243 | ) | | | | | | | (33,243 | ) | | |
| SEK | | | 1,000 | | | | 06/20/29 | | | | 0.550%(A) | | | 3 Month STIBOR(2)(Q) | | | — | | | | (11,157 | ) | | | | | | | (11,157 | ) | | |
| SEK | | | 1,500 | | | | 01/24/30 | | | | 0.605%(A) | | | 3 Month STIBOR(2)(Q) | | | — | | | | (18,090 | ) | | | | | | | (18,090 | ) | | |
| SGD | | | 250 | | | | 07/29/31 | | | | 1.120%(S) | | | 1 Day SORA(2)(S) | | | — | | | | (22,209 | ) | | | | | | | (22,209 | ) | | |
| THB | | | 4,200 | | | | 07/03/30 | | | | 1.028%(S) | | | 6 Month THBFIX(2)(S) | | | — | | | | (14,520 | ) | | | | | | | (14,520 | ) | | |
| | | 1,160 | | | | 05/29/22 | | | | 0.014%(A) | | | 1 Day USOIS(1)(A) | | | — | | | | 1,853 | | | | | | | | 1,853 | | | |
| | | 680 | | | | 11/09/22 | | | | 0.050%(A) | | | 1 Day USOIS(1)(A) | | | — | | | | 6,138 | | | | | | | | 6,138 | | | |
| | | 4,000 | | | | 11/09/22 | | | | 0.061%(A) | | | 1 Day SOFR(1)(A) | | | — | | | | 34,003 | | | | | | | | 34,003 | | | |
| | | 3,165 | | | | 11/02/23 | | | | 0.070%(A) | | | 1 Day USOIS(1)(A) | | | — | | | | 120,692 | | | | | | | | 120,692 | | | |
See Notes to Financial Statements.
36
Interest rate swap agreements outstanding at April 30, 2022 (continued):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Notional Amount (000)# | | | Termination
Date | | | Fixed
Rate | | | Floating Rate | | Value at
Trade Date | | | Value at
April 30,
2022 | | | Unrealized Appreciation (Depreciation) | |
| | | | | | | | | | | | | | | | | | | |
| | | | | |
| Centrally Cleared Interest Rate Swap Agreements (cont’d.): | | | | | | | | | | | | | | | | | | |
| | | 2,754 | | | | 11/06/23 | | | | 0.063%(A) | | | 1 Day USOIS(1)(A) | | $ | — | | | $ | 106,306 | | | | | $ | 106,306 | | | | | |
| | | 247 | | | | 08/15/28 | | | | 1.220%(A) | | | 1 Day SOFR(1)(A) | | | — | | | | 20,329 | | | | | | 20,329 | | | | | |
| ZAR | | | 3,500 | | | | 07/16/28 | | | | 8.170%(Q) | | | 3 Month JIBAR(2)(Q) | | | 6 | | | | 4,582 | | | | | | 4,576 | | | | | |
| ZAR | | | 11,910 | | | | 09/15/30 | | | | 6.940%(Q) | | | 3 Month JIBAR(2)(Q) | | | (118 | ) | | | (58,469 | ) | | | | | (58,351 | ) | | | | |
| ZAR | | | 830 | | | | 10/07/31 | | | | 7.670%(Q) | | | 3 Month JIBAR(2)(Q) | | | (6 | ) | | | (2,470 | ) | | | | | (2,464 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | $ | 85,478 | | | $ | (930,384 | ) | | | | $ | (1,015,862 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Notional Amount (000)# | | Termination
Date | | | Fixed Rate | | Floating Rate | | Fair Value | | | Upfront Premiums Paid(Received) | | Unrealized Appreciation (Depreciation) | | Counterparty |
| | | | | | | | | | | | | | | | | |
| | | | | | | | |
| OTC Interest Rate Swap Agreements: | | | | | | | | | | | | | | | | | | | | | | |
| CNH | | 500 | | | 04/02/26 | | | 3.120%(Q) | | 7 Day China Fixing Repo Rates(2)(Q) | | $ | 1,942 | | | | | $ | (1 | ) | | | | | | $ | 1,943 | | | | | Citibank, N.A. |
| COP | | 123,000 | | | 01/23/28 | | | 6.035%(Q) | | 1 Day COOIS(2)(Q) | | | (3,670 | ) | | | | | — | | | | | | | | (3,670 | ) | | | | Morgan Stanley & Co. International PLC |
| COP | | 336,000 | | | 01/26/28 | | | 6.000%(Q) | | 1 Day COOIS(2)(Q) | | | (10,020 | ) | | | | | — | | | | | | | | (10,020 | ) | | | | Morgan Stanley & Co. International PLC |
| COP | | 263,000 | | | 02/01/28 | | | 6.020%(Q) | | 1 Day COOIS(2)(Q) | | | (7,627 | ) | | | | | — | | | | | | | | (7,627 | ) | | | | Morgan Stanley & Co. International PLC |
| COP | | 118,000 | | | 07/12/29 | | | 5.165%(Q) | | 1 Day COOIS(2)(Q) | | | (5,482 | ) | | | | | — | | | | | | | | (5,482 | ) | | | | Morgan Stanley &Co. International PLC |
| ILS | | 200 | | | 09/07/27 | | | 0.488%(A) | | 3 Month TELBOR(2)(Q) | | | (4,878 | ) | | | | | — | | | | | | | | (4,878 | ) | | | | Morgan Stanley &Co. International PLC |
| ILS | | 390 | | | 07/16/28 | | | 2.045%(A) | | 3 Month TELBOR(2)(Q) | | | 646 | | | | | | — | | | | | | | | 646 | | | | | JPMorgan Chase Bank, N.A. |
| ILS | | 115 | | | 02/07/29 | | | 1.965%(A) | | 3 Month TELBOR(2)(Q) | | | (489 | ) | | | | | — | | | | | | | | (489 | ) | | | | JPMorgan Chase Bank, N.A. |
| ILS | | 450 | | | 04/24/30 | | | 0.710%(A) | | 3 Month TELBOR(2)(Q) | | | (15,737 | ) | | | | | (4 | ) | | | | | | | (15,733 | ) | | | | Goldman Sachs International |
| ILS | | 800 | | | 05/07/30 | | | 0.810%(A) | | 3 Month TELBOR(2)(Q) | | | (24,541 | ) | | | | | — | | | | | | | | (24,541 | ) | | | | Goldman Sachs International |
| KRW | | 850,000 | | | 01/06/27 | | | 1.800%(Q) | | 3 Month KWCDC(2)(Q) | | | (36,949 | ) | | | | | (9 | ) | | | | | | | (36,940 | ) | | | | Citibank, N.A. |
| MYR | | 1,000 | | | 11/27/23 | | | 3.900%(Q) | | 3 Month KLIBOR(2)(Q) | | | 4,202 | | | | | | (2 | ) | | | | | | | 4,204 | | | | | Citibank, N.A. |
See Notes to Financial Statements.
PGIM International Bond Fund 37
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
Interest rate swap agreements outstanding at April 30, 2022 (continued):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Notional Amount (000)# | | | Termination
Date | | | Fixed
Rate | | | Floating Rate | | Fair Value | | | Upfront Premiums Paid(Received) | | Unrealized Appreciation (Depreciation) | | | Counterparty |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| OTC Interest Rate Swap Agreements (cont’d.): | | | | | | | | | | | | | | | | | |
| MYR | | | 200 | | | | 11/19/29 | | | | 3.245%(Q) | | | 3 Month KLIBOR(2)(Q) | | | | $ | (2,464 | ) | | | | | | | | $ | — | | | | | | | | | $ | (2,464 | ) | | | | | | Morgan Stanley & Co. International PLC |
| MYR | | | 200 | | | | 02/04/30 | | | | 3.060%(Q) | | | 3 Month KLIBOR(2)(Q) | | | | | (3,139 | ) | | | | | | | | | — | | | | | | | | | | (3,139 | ) | | | | | | Morgan Stanley & Co. International PLC |
| MYR | | | 100 | | | | 04/07/32 | | | | 3.870%(Q) | | | 3 Month KLIBOR(2)(Q) | | | | | (706 | ) | | | | | | | | | (1 | ) | | | | | | | | | (705 | ) | | | | | | Citibank, N.A. |
| THB | | | 5,000 | | | | 05/07/25 | | | | 0.795%(S) | | | 6 Month THBFIX(2)(S) | | | | | (4,369 | ) | | | | | | | | | 1 | | | | | | | | | | (4,370 | ) | | | | | | HSBC Bank PLC |
| THB | | | 3,500 | | | | 02/14/29 | | | | 2.180%(S) | | | 6 Month THBFIX(2)(S) | | | | | (1,572 | ) | | | | | | | | | — | | | | | | | | | | (1,572 | ) | | | | | | Citibank, N.A. |
| ZAR | | | 3,300 | | | | 09/22/42 | | | | 8.020%(Q) | | | 3 Month JIBAR(2)(Q) | | | | | (15,687 | ) | | | | | | | | | (24 | ) | | | | | | | | | (15,663 | ) | | | | | | Citibank, N.A. |
| ZAR | | | 3,100 | | | | 09/22/47 | | | | 7.890%(Q) | | | 3 Month JIBAR(1)(Q) | | | | | 19,122 | | | | | | | | | | 20 | | | | | | | | | | 19,102 | | | | | | | Citibank, N.A. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | $ | (111,418 | ) | | | | | | | | $ | (20 | ) | | | | | | | | $ | (111,398 | ) | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | The Fund pays the fixed rate and receives the floating rate. |
| (2) | The Fund pays the floating rate and receives the fixed rate. |
Balances Reported in the Statement of Assets and Liabilities for OTC Swap Agreements:
| | | | | | | | |
| | | Premiums Paid | | Premiums Received | | Unrealized Appreciation | | Unrealized Depreciation |
| | | | |
| OTC Swap Agreements | | $402,925 | | $(277,383) | | $97,146 | | $(312,426) |
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 derivativesare listed by broker as follows:
| | | | | | | | | | | | | | | | |
| Broker | | Cash and/or Foreign Currency | | Securities Market Value |
| | | | | |
| | | | | | |
| Citigroup Global Markets, Inc. | | | | $ | — | | | | | | | $ | 814,349 | | | |
| J.P. Morgan Securities LLC | | | | | 870,000 | | | | | | | | — | | | |
| | | | | | | | | | | | | | | | |
| | | | | | |
| Total | | | | $ | 870,000 | | | | | | | $ | 814,349 | | | |
| | | | | | | | | | | | | | | | |
Fair Value Measurements:
Variousinputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.
See Notes to Financial Statements.
38
Level 1—unadjusted quoted prices generally in active markets for identicalsecurities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange ratesand other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
The following is a summary of the inputs used as of April 30, 2022 in valuing such portfolio securities:
| | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 |
| Investments in Securities | | | | | | | | | | | | |
| Assets | | | | | | | | | | | | |
| Long-Term Investments | | | | | | | | | | | | |
| Asset-Backed Securities | | | | | | | | | | | | |
| Cayman Islands | | $ | — | | | $ | 965,979 | | | | $— | |
| United States | | | — | | | | 309,317 | | | | — | |
| Commercial Mortgage-Backed Securities | | | | | | | | | | | | |
| Canada | | | — | | | | 16,682 | | | | — | |
| Ireland | | | — | | | | 363,737 | | | | — | |
| United Kingdom | | | — | | | | 251,474 | | | | — | |
| United States | | | — | | | | 1,352,642 | | | | — | |
| Corporate Bonds | | | | | | | | | | | | |
| Australia | | | — | | | | 106,588 | | | | — | |
| Belgium | | | — | | | | 59,172 | | | | — | |
| Brazil | | | — | | | | 125,308 | | | | — | |
| Bulgaria | | | — | | | | 84,907 | | | | — | |
| China | | | — | | | | 81,134 | | | | — | |
| France | | | — | | | | 657,987 | | | | — | |
| Germany | | | — | | | | 754,203 | | | | — | |
| Hong Kong | | | — | | | | 242,181 | | | | — | |
| Hungary | | | — | | | | 103,375 | | | | — | |
| Iceland | | | — | | | | 103,921 | | | | — | |
| India | | | — | | | | 102,731 | | | | — | |
| Indonesia | | | — | | | | 88,570 | | | | — | |
| Italy | | | — | | | | 291,884 | | | | — | |
| Kazakhstan | | | — | | | | 141,915 | | | | — | |
| Luxembourg | | | — | | | | 370,099 | | | | — | |
| Mexico | | | — | | | | 392,795 | | | | — | |
| Netherlands | | | — | | | | 575,945 | | | | — | |
| Peru | | | — | | | | 91,457 | | | | — | |
| Poland | | | — | | | | 255,424 | | | | — | |
| Russia | | | — | | | | 131,130 | | | | — | |
| Spain | | | — | | | | 122,422 | | | | — | |
| Supranational Bank | | | — | | | | 123,837 | | | | — | |
| United Arab Emirates | | | — | | | | 307,563 | | | | — | |
| United Kingdom | | | — | | | | 1,458,636 | | | | — | |
| United States | | | — | | | | 1,766,659 | | | | — | |
| Residential Mortgage-Backed Securities | | | | | | | | | | | | |
| Bermuda | | | — | | | | 121,035 | | | | — | |
| Ireland | | | — | | | | 65,583 | | | | — | |
| United States | | | — | | | | 355,855 | | | | — | |
| Sovereign Bonds | | | | | | | | | | | | |
| Belgium | | | — | | | | 487,266 | | | | — | |
| Brazil | | | — | | | | 431,336 | | | | — | |
| Bulgaria | | | — | | | | 120,898 | | | | — | |
| Canada | | | — | | | | 210,610 | | | | — | |
| China | | | — | | | | 1,260,326 | | | | — | |
| Colombia | | | — | | | | 637,473 | | | | — | |
| Croatia | | | — | | | | 215,210 | | | | — | |
| Cyprus | | | — | | | | 636,962 | | | | — | |
| France | | | — | | | | 82,274 | | | | — | |
See Notes to Financial Statements.
PGIM International Bond Fund 39
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
| | | | | | | | | | | | | | | |
| | | Level 1 | | Level 2 | | Level 3 |
| Investments in Securities (continued) | | | | | | | | | | | | | | | |
| Assets (continued) | | | | | | | | | | | | | | | |
| Long-Term Investments (continued) | | | | | | | | | | | | | | | |
| Sovereign Bonds (continued) | | | | | | | | | | | | | | | |
| Greece | | | $ | — | | | | $ | 812,192 | | | | | $— | |
| Hong Kong | | | | — | | | | | 83,674 | | | | | — | |
| Hungary | | | | — | | | | | 86,275 | | | | | — | |
| Indonesia | | | | — | | | | | 1,073,821 | | | | | — | |
| Israel | | | | — | | | | | 207,875 | | | | | — | |
| Italy | | | | — | | | | | 2,396,260 | | | | | — | |
| Kazakhstan | | | | — | | | | | 111,614 | | | | | — | |
| Lithuania | | | | — | | | | | 108,816 | | | | | — | |
| Mexico | | | | — | | | | | 375,500 | | | | | — | |
| New Zealand | | | | — | | | | | 46,461 | | | | | — | |
| Peru | | | | — | | | | | 463,714 | | | | | — | |
| Philippines | | | | — | | | | | 380,100 | | | | | — | |
| Portugal | | | | — | | | | | 1,046,484 | | | | | — | |
| Romania | | | | — | | | | | 372,068 | | | | | — | |
| Russia | | | | — | | | | | 52,747 | | | | | — | |
| Saudi Arabia | | | | — | | | | | 113,777 | | | | | — | |
| Serbia | | | | — | | | | | 236,952 | | | | | — | |
| Spain | | | | — | | | | | 2,031,739 | | | | | — | |
| Ukraine | | | | — | | | | | 101,275 | | | | | — | |
| United Kingdom | | | | — | | | | | 239,585 | | | | | — | |
| Short-Term Investments | | | | | | | | | | | | | | | |
| Unaffiliated Fund | | | | 1,229,954 | | | | | — | | | | | — | |
| Options Purchased | | | | — | | | | | 18,675 | | | | | — | |
| | | | | | | | | | | | | | | |
| Total | | | $ | 1,229,954 | | | | $ | 26,784,106 | | | | | $— | |
| | | | | | | | | | | | | | | |
| | | |
| Liabilities | | | | | | | | | | | | | | | |
| Options Written | | | $ | — | | | | $ | (21,513 | ) | | | | $— | |
| | | | | | | | | | | | | | | |
| | | |
| Other Financial Instruments* | | | | | | | | | | | | | | | |
| Assets | | | | | | | | | | | | | | | |
| Futures Contracts | | | $ | 1,259,218 | | | | $ | — | | | | | $— | |
| OTC Forward Foreign Currency Exchange Contracts | | | | — | | | | | 305,363 | | | | | — | |
| OTC Credit Default Swap Agreements | | | | — | | | | | 424,473 | | | | | — | |
| OTC Currency Swap Agreement | | | | — | | | | | 8,992 | | | | | — | |
| Centrally Cleared Inflation Swap Agreement | | | | — | | | | | 9,396 | | | | | — | |
| Centrally Cleared Interest Rate Swap Agreements | | | | — | | | | | 499,716 | | | | | — | |
| OTC Interest Rate Swap Agreements | | | | — | | | | | 25,912 | | | | | — | |
| | | | | | | | | | | | | | | |
| Total | | | $ | 1,259,218 | | | | $ | 1,273,852 | | | | | $— | |
| | | | | | | | | | | | | | | |
| | | |
| Liabilities | | | | | | | | | | | | | | | |
| Futures Contracts | | | $ | (127,491 | ) | | | $ | — | | | | | $— | |
| OTC Forward Foreign Currency Exchange Contracts | | | | — | | | | | (121,367 | ) | | | | — | |
| Centrally Cleared Credit Default Swap Agreement | | | | — | | | | | (54,015 | ) | | | | — | |
| OTC Credit Default Swap Agreements | | | | — | | | | | (411,785 | ) | | | | — | |
| Centrally Cleared Inflation Swap Agreement | | | | — | | | | | (18,508 | ) | | | | — | |
| Centrally Cleared Interest Rate Swap Agreements | | | | — | | | | | (1,515,578 | ) | | | | — | |
| OTC Interest Rate Swap Agreements | | | | — | | | | | (137,330 | ) | | | | — | |
| | | | | | | | | | | | | | | |
| Total | | | $ | (127,491 | ) | | | $ | (2,258,583 | ) | | | | $— | |
| | | | | | | | | | | | | | | |
See Notes to Financial Statements.
40
| * | Other financial instruments are derivative instruments not reflected in the Schedule of Investments, such as futures,forwards and centrally cleared swap contracts, which are recorded at the unrealized appreciation (depreciation) on the instrument, and OTC swap contracts which are recorded at fair value. |
Industry Classification:
The industry classification of investmentsand other assets in excess of liabilities shown as a percentage of net assets as of April 30, 2022 were as follows:
| | | | |
| Sovereign Bonds | | | 49.2 | % |
| Commercial Mortgage-Backed Securities | | | 6.8 | |
| Unaffiliated Fund | | | 4.2 | |
| Banks | | | 3.7 | |
| Collateralized Loan Obligations | | | 3.3 | |
| Telecommunications | | | 2.6 | |
| Oil & Gas | | | 2.4 | |
| Electric | | | 2.0 | |
| Foods | | | 1.9 | |
| Residential Mortgage-Backed Securities | | | 1.8 | |
| Commercial Services | | | 1.7 | |
| Healthcare-Products | | | 1.7 | |
| Insurance | | | 1.4 | |
| Packaging & Containers | | | 1.4 | |
| Transportation | | | 1.1 | |
| Media | | | 1.0 | |
| Auto Manufacturers | | | 1.0 | |
| Lodging | | | 0.7 | |
| Retail | | | 0.7 | |
| Internet | | | 0.7 | |
| Machinery-Diversified | | | 0.6 | |
| | | | |
| Real Estate Investment Trusts (REITs) | | | 0.6 | % |
| Diversified Financial Services | | | 0.6 | |
| Entertainment | | | 0.5 | |
| Other | | | 0.5 | |
| Chemicals | | | 0.5 | |
| Real Estate | | | 0.5 | |
| Multi-National | | | 0.4 | |
| Computers | | | 0.4 | |
| Household Products/Wares | | | 0.4 | |
| Consumer Loans | | | 0.3 | |
| Engineering & Construction | | | 0.3 | |
| Student Loan | | | 0.2 | |
| Beverages | | | 0.2 | |
| Semiconductors | | | 0.1 | |
| Options Purchased | | | 0.1 | |
| | | | |
| |
| | | 95.5 | |
| Options Written | | | (0.1 | ) |
| Other assets in excess of liabilities | | | 4.6 | |
| | | | |
| |
| | | 100.0 | % |
| | | | |
Effects of Derivative Instruments on theFinancial Statements and Primary Underlying Risk Exposure:
The Fund invested in derivative instruments during the reporting period. The primary types ofrisk associated with these derivative instruments are credit contracts risk, foreign exchange contracts risk and interest rate contracts risk. See the Notes to Financial Statements for additional detail regarding these derivative instruments andtheir risks. The effect of such derivative instruments on the Fund’s financial position and financial performance as reflected in the Statement of Assets and Liabilities and Statement of Operations is presented in the summary below.
Fair values of derivative instruments as of April 30, 2022 as presented in the Statement of Assets and Liabilities:
See Notes to Financial Statements.
PGIM International Bond Fund 41
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
| | | | | | | | | | | | |
| | | 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 | | $ | 54,015* | |
| Credit contracts | | Premiums paid for OTC swap agreements | | | 402,904 | | | Premiums received for OTC swap agreements | | | 277,342 | |
| Credit contracts | | Unrealized appreciation on OTC swap agreements | | | 62,259 | | | Unrealized depreciation on OTC swap agreements | | | 175,133 | |
| Foreign exchange contracts | | Due from/to broker-variation margin futures | | | 654,854* | | | — | | | — | |
| Foreign exchange contracts | | Unrealized appreciation on OTC forward foreign currency exchange contracts | | | 305,363 | | | Unrealized depreciation on OTC forward foreign currency exchange contracts | | | 121,367 | |
| Interest rate contracts | | Due from/to broker-variation margin futures | | | 604,364 | * | | Due from/to broker-variation margin futures | | | 127,491 | * |
| Interest rate contracts | | Due from/to broker-variation margin swaps | | | 509,112 | * | | Due from/to broker-variation margin swaps | | | 1,534,086 | * |
| Interest rate contracts | | Premiums paid for OTC swap agreements | | | 21 | | | Premiums received for OTC swap agreements | | | 41 | |
| Interest rate contracts | | Unaffiliated investments | | | 18,675 | | | Options written outstanding, at value | | | 21,513 | |
| Interest rate contracts | | Unrealized appreciation on OTC swap agreements | | | 34,887 | | | Unrealized depreciation on OTC swap agreements | | | 137,293 | |
| | | | | | | | | | | | |
| | | | |
| | | | $ | 2,592,439 | | | | | $ | 2,448,281 | |
| | | | | | | | | | | | |
| * | Includes cumulative appreciation (depreciation) as reported in the schedule of open futures and centrally cleared swapcontracts. Only unsettled variation margin receivable (payable) is reported within the Statement of Assets and Liabilities. |
The effects ofderivative instruments on the Statement of Operations for the six months ended April 30, 2022 are as follows:
| | | | | | | | | | | | | | | |
| Amount of Realized Gain (Loss) on DerivativesRecognized in Income |
| | | |
| Derivatives not accounted for as hedging instruments, carried at fair value | | Futures | | Forward
Currency
Exchange
Contracts | | Swaps |
| | | |
| Credit contracts | | | $ | — | | | | $ | — | | | | $ | (128,762 | ) |
| Foreign exchange contracts | | | | 1,962,573 | | | | | 13,348 | | | | | — | |
| Interest rate contracts | | | | 60,147 | | | | | — | | | | | (282,851 | ) |
| | | | | | | | | | | | | | | |
| | | |
| Total | | | $ | 2,022,720 | | | | $ | 13,348 | | | | $ | (411,613 | ) |
| | | | | | | | | | | | | | | |
See Notes to Financial Statements.
42
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Change in Unrealized Appreciation (Depreciation) onDerivatives Recognized in Income |
| | | | | |
| Derivatives not accounted for as hedginginstruments, carried at fair value | | Options
Purchased(1) | | Options
Written | | Futures | | Forward
Currency
Exchange
Contracts | | Swaps |
| | | | | |
| Credit contracts | | | $ | — | | | | $ | — | | | | $ | — | | | | $ | — | | | | $ | (232,995 | ) |
| Foreign exchange contracts | | | | — | | | | | — | | | | | 134,118 | | | | | 210,987 | | | | | — | |
| Interest rate contracts | | | | 12,229 | | | | | (13,369 | ) | | | | 301,632 | | | | | — | | | | | (951,354 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| Total | | | $ | 12,229 | | | | $ | (13,369 | ) | | | $ | 435,750 | | | | $ | 210,987 | | | | $ | (1,184,349 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Included in net change in unrealized appreciation (depreciation) on investments in the Statement of Operations. |
For the six months ended April 30, 2022, the Fund’s average volume of derivative activities is as follows:
| | | | |
| Derivative Contract Type | | Average Volume of Derivative Activities* |
| Options Purchased (1) | | | $ 6,300 | |
| Options Written (2) | | | 1,000,000 | |
| Futures Contracts - Long Positions(2) | | | 5,520,302 | |
| Futures Contracts - Short Positions(2) | | | 45,094,680 | |
| Forward Foreign Currency Exchange Contracts- Purchased (3) | | | 7,137,873 | |
| Forward Foreign Currency Exchange Contracts- Sold (3) | | | 11,488,976 | |
| Interest Rate Swap Agreements (2) | | | 61,220,293 | |
| Credit Default Swap Agreements - BuyProtection (2) | | | 293,793 | |
| Credit Default Swap Agreements - SellProtection (2) | | | 4,841,431 | |
| Currency Swap Agreements (2) | | | 138,169 | |
| Inflation Swap Agreements (2) | | | 851,253 | |
| * | Average volume is based on average quarter end balances as noted for the six months ended April 30, 2022. |
| (2) | Notional Amount in USD. |
| (3) | Value at Settlement Date. |
Financial Instruments/Transactions—Summary of Offsetting and Netting Arrangements:
The Fund invested in OTC derivatives during the reporting period that are either offset in accordance with current requirements or are subject to enforceable masternetting arrangements or similar agreements that permit offsetting. The information about offsetting and related netting arrangements for OTC derivatives where the legal right to set-off exists is presented inthe summary below.
See Notes to Financial Statements.
PGIM International Bond Fund 43
Schedule of Investments (unaudited) (continued)
as of April 30, 2022
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 |
| Bank of America, N.A. | | | | $ | 16,754 | | | | | | | | | $ | (16,420 | ) | | | | | | $ | 334 | | | | | | | | | $ | — | | | | | | | $ | 334 | | | |
| Barclays Bank PLC | | | | | 149,087 | | | | | | | | | | (82,389 | ) | | | | | | | 66,698 | | | | | | | | | | — | | | | | | | | 66,698 | | | |
| BNP Paribas S.A. | | | | | 19,194 | | | | | | | | | | (1,507 | ) | | | | | | | 17,687 | | | | | | | | | | — | | | | | | | | 17,687 | | | |
| Citibank, N.A. | | | | | 75,878 | | | | | | | | | | (81,352 | ) | | | | | | | (5,474 | ) | | | | | | | | | — | | | | | | | | (5,474 | ) | | |
| Credit Suisse International | | | | | 350 | | | | | | | | | | — | | | | | | | | 350 | | | | | | | | | | — | | | | | | | | 350 | | | |
| Deutsche Bank AG | | | | | 26,040 | | | | | | | | | | (83,764 | ) | | | | | | | (57,724 | ) | | | | | | | | | — | | | | | | | | (57,724 | ) | | |
| Goldman Sachs International | | | | | 9,409 | | | | | | | | | | (43,389 | ) | | | | | | | (33,980 | ) | | | | | | | | | — | | | | | | | | (33,980 | ) | | |
| HSBC Bank PLC | | | | | 310,146 | | | | | | | | | | (324,571 | ) | | | | | | | (14,425 | ) | | | | | | | | | — | | | | | | | | (14,425 | ) | | |
| JPMorgan Chase Bank, N.A. | | | | | 66,881 | | | | | | | | | | (23,954 | ) | | | | | | | 42,927 | | | | | | | | | | — | | | | | | | | 42,927 | | | |
| Morgan Stanley & Co. International PLC | | | | | 137,803 | | | | | | | | | | (68,212 | ) | | | | | | | 69,591 | | | | | | | | | | — | | | | | | | | 69,591 | | | |
| The Toronto-Dominion Bank | | | | | 12,567 | | | | | | | | | | (7,131 | ) | | | | | | | 5,436 | | | | | | | | | | — | | | | | | | | 5,436 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | $ | 824,109 | | | | | | | | | $ | (732,689 | ) | | | | | | $ | 91,420 | | | | | | | | | $ | — | | | | | | | $ | 91,420 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Includes unrealized appreciation/(depreciation) on swaps and forwards, premiums paid/(received) on swap agreements andmarket 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 theFund’s OTC derivative exposure by counterparty. |
See Notes to Financial Statements.
44
Statement of Assets and Liabilities (unaudited)
as ofApril 30, 2022
| | | | |
| Assets | |
| |
| Unaffiliated investments (cost $32,593,548) | | $ | 28,014,060 | |
| Cash | | | 163 | |
| Foreign currency, at value (cost $302,184) | | | 299,942 | |
| Cash segregated for counterparty - OTC | | | 110,000 | |
| Deposit with broker for centrally cleared/exchange-traded derivatives | | | 870,000 | |
| Premiums paid for OTC swap agreements | | | 402,925 | |
| Unrealized appreciation on OTC forward foreign currency exchange contracts | | | 305,363 | |
| Dividends and interest receivable | | | 299,187 | |
| Receivable for investments sold | | | 111,946 | |
| Unrealized appreciation on OTC swap agreements | | | 97,146 | |
| Due from Manager | | | 3,378 | |
| Receivable for Fund shares sold | | | 2,372 | |
| Prepaid expenses | | | 704 | |
| | | | |
| |
| Total Assets | | | 30,517,186 | |
| | | | |
|
| Liabilities | |
| |
| Unrealized depreciation on OTC swap agreements | | | 312,426 | |
| Premiums received for OTC swap agreements | | | 277,383 | |
| Payable for investments purchased | | | 221,711 | |
| Unrealized depreciation on OTC forward foreign currency exchange contracts | | | 121,367 | |
| Due to broker—variation margin futures | | | 99,883 | |
| Accrued expenses and other liabilities | | | 70,847 | |
| Due to broker—variation margin swaps | | | 50,790 | |
| Options written outstanding, at value (premiums received $7,500) | | | 21,513 | |
| Payable for Fund shares purchased | | | 2,849 | |
| Trustees’ fees payable | | | 702 | |
| Affiliated transfer agent fee payable | | | 268 | |
| Distribution fee payable | | | 96 | |
| | | | |
| |
| Total Liabilities | | | 1,179,835 | |
| | | | |
| |
| Net Assets | | $ | 29,337,351 | |
| | | | |
| |
| | | | | |
| |
| Net assets were comprised of: | | | | |
| Shares of beneficial interest, at par | | $ | 3,644 | |
| Paid-in capital in excess of par | | | 34,875,711 | |
| Total distributable earnings (loss) | | | (5,542,004 | ) |
| | | | |
| |
| Net assets, April 30, 2022 | | $ | 29,337,351 | |
| | | | |
See Notes to Financial Statements.
PGIM International Bond Fund 45
Statement of Assets and Liabilities (unaudited)
as ofApril 30, 2022
| | | | |
| Class A | |
| |
| Net asset value and redemption price per share, ($239,267 ÷ 29,726 shares of beneficial interest issued and outstanding) | | $ | 8.05 | |
| Maximum sales charge (3.25% of offering price) | | | 0.27 | |
| | | | |
| Maximum offering price to public | | $ | 8.32 | |
| | | | |
|
| Class C | |
| |
| Net asset value, offering price and redemption price per share, ($48,961 ÷ 6,086 shares of beneficial interest issued and outstanding) | | $ | 8.04 | |
| | | | |
|
| Class Z | |
| |
| Net asset value, offering price and redemption price per share, ($1,165,062 ÷ 144,754 shares of beneficial interest issued and outstanding) | | $ | 8.05 | |
| | | | |
|
| Class R6 | |
| |
| Net asset value, offering price and redemption price per share, ($27,884,061 ÷ 3,463,783 shares of beneficial interest issued and outstanding) | | $ | 8.05 | |
| | | | |
See Notes to Financial Statements.
46
Statement of Operations (unaudited)
Six MonthsEnded April 30, 2022
| | | | |
| Net Investment Income (Loss) | |
| |
| Income | | | | |
| Interest income (net of $2,099 foreign withholding tax) | | $ | 370,772 | |
| Unaffiliated dividend income | | | 237 | |
| Affiliated dividend income | | | 156 | |
| | | | |
| |
| Total income | | | 371,165 | |
| | | | |
| |
| Expenses | | | | |
| Management fee | | | 81,263 | |
| Distribution fee(a) | | | 631 | |
| Custodian and accounting fees | | | 37,955 | |
| Audit fee | | | 25,042 | |
| Registration fees(a) | | | 14,641 | |
| Legal fees and expenses | | | 9,728 | |
| Shareholders’ reports | | | 6,889 | |
| Trustees’ fees | | | 4,829 | |
| Transfer agent’s fees and expenses (including affiliated expense of $613)(a) | | | 3,058 | |
| Miscellaneous | | | 9,846 | |
| | | | |
| |
| Total expenses | | | 193,882 | |
| Less: Fee waiver and/or expense reimbursement(a) | | | (98,293 | ) |
| | | | |
| |
| Net expenses | | | 95,589 | |
| | | | |
| |
| Net investment income (loss) | | | 275,576 | |
| | | | |
|
| Realized And Unrealized Gain (Loss) On Investment AndForeign Currency Transactions | |
| |
| Net realized gain (loss) on: | | | | |
| Investment transactions | | | 205,763 | |
| Futures transactions | | | 2,022,720 | |
| Forward currency contract transactions | | | 13,348 | |
| Swap agreement transactions | | | (411,613 | ) |
| Foreign currency transactions | | | (79,152 | ) |
| | | | |
| |
| | | 1,751,066 | |
| | | | |
| Net change in unrealized appreciation (depreciation) on: | | | | |
| Investments | | | (6,054,433 | ) |
| Futures | | | 435,750 | |
| Forward currency contracts | | | 210,987 | |
| Options written | | | (13,369 | ) |
| Swap agreements | | | (1,184,349 | ) |
| Foreign currencies | | | (59,536 | ) |
| | | | |
| |
| | | (6,664,950 | ) |
| | | | |
| |
| Net gain (loss) on investment and foreign currency transactions | | | (4,913,884 | ) |
| | | | |
| |
| Net Increase (Decrease) In Net Assets Resulting From Operations | | $ | (4,638,308 | ) |
| | | | |
See Notes to Financial Statements.
PGIM International Bond Fund 47
Statement of Operations (unaudited)
SixMonths Ended April 30, 2022
| (a) | Class specific expenses and waivers were as follows: |
| | | | | | | | | | | | | | | | |
| | | Class A | | | Class C | | | Class Z | | | Class R6 | |
| Distribution fee | | | 341 | | | | 290 | | | | — | | | | — | |
| Registration fees | | | 3,436 | | | | 2,582 | | | | 5,832 | | | | 2,791 | |
| Transfer agent’s fees and expenses | | | 529 | | | | 127 | | | | 2,326 | | | | 76 | |
| Fee waiver and/or expense reimbursement | | | (4,429) | | | | (2,809) | | | | (12,038) | | | | (79,017) | |
See Notes to Financial Statements.
48
Statements of Changes in Net Assets (unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| | | Six Months Ended April 30, 2022 | | | Year Ended
October 31, 2021 | |
| | | | | | |
| Increase (Decrease) in Net Assets | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| Operations | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | | | | | $ | 275,576 | | | | | | | | | | | $ | 659,213 | | | | | |
| Net realized gain (loss) on investment and foreign currency transactions | | | | | | | 1,751,066 | | | | | | | | | | | | 1,621,948 | | | | | |
| Net change in unrealized appreciation (depreciation) on investments and foreign currencies | | | | | | | (6,664,950 | ) | | | | | | | | | | | (2,640,034 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| Net increase (decrease) in net assets resulting from operations | | | | | | | (4,638,308 | ) | | | | | | | | | | | (358,873 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| Dividends and Distributions | | | | | | | | | | | | | | | | | | | | | | | | |
| Distributions from distributable earnings | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | | | | | (9,231 | ) | | | | | | | | | | | (11,618 | ) | | | | |
| Class C | | | | | | | (1,549 | ) | | | | | | | | | | | (5,396 | ) | | | | |
| Class Z | | | | | | | (63,861 | ) | | | | | | | | | | | (221,194 | ) | | | | |
| Class R6 | | | | | | | (1,108,775 | ) | | | | | | | | | | | (1,074,118 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | | | | | | (1,183,416 | ) | | | | | | | | | | | (1,312,326 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Fund share transactions (Net of share conversions) | | | | | | | | | | | | | | | | | | | | | | | | |
| Net proceeds from shares sold | | | | | | | 1,133,096 | | | | | | | | | | | | 2,351,743 | | | | | |
| Net asset value of shares issued in reinvestment of dividends and distributions | | | | | | | 1,183,212 | | | | | | | | | | | | 1,312,012 | | | | | |
| Cost of shares purchased | | | | | | | (1,927,985 | ) | | | | | | | | | | | (16,437,684 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| Net increase (decrease) in net assets from Fund share transactions | | | | | | | 388,323 | | | | | | | | | | | | (12,773,929 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Total increase (decrease) | | | | | | | (5,433,401 | ) | | | | | | | | | | | (14,445,128 | ) | | | | |
| | | | | | |
| Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| Beginning of period | | | | | | | 34,770,752 | | | | | | | | | | | | 49,215,880 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| End of period | | | | | | $ | 29,337,351 | | | | | | | | | | | $ | 34,770,752 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
See Notes to Financial Statements.
PGIM International Bond Fund 49
Financial Highlights (unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended | | | | | | | | | | | | | | | | | December 14, 2016(a)
through | | |
| | | April 30, | | | Year Ended October 31, | | | October 31, | | |
| | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | | |
| | | | | | | | | |
| Per ShareOperating Performance(b): | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value,Beginning of Period | | | $9.65 | | | | | | $10.13 | | | | $10.83 | | | | $10.22 | | | | $10.44 | | | | $10.00 | | | |
| Income (loss)from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investmentincome (loss) | | | 0.06 | | | | | | 0.13 | | | | 0.14 | | | | 0.14 | | | | 0.12 | | | | 0.07 | | | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | (1.35 | ) | | | | | (0.32 | ) | | | 0.10 | | | | 1.43 | | | | (0.08 | ) | | | 0.57 | | | |
| Total frominvestment operations | | | (1.29 | ) | | | | | (0.19 | ) | | | 0.24 | | | | 1.57 | | | | 0.04 | | | | 0.64 | | | |
| Less Dividendsand Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends from netinvestment income | | | (0.31 | ) | | | | | (0.29 | ) | | | (0.53 | ) | | | (0.96 | ) | | | (0.26 | ) | | | - | | | |
| Tax return ofcapital distributions | | | - | | | | | | - | | | | (0.24 | ) | | | - | | | | - | | | | (0.20 | ) | | |
| Distributions fromnet realized gains | | | - | | | | | | - | | | | (0.17 | ) | | | - | | | | - | | | | - | | | |
| Total dividends anddistributions | | | (0.31 | ) | | | | | (0.29 | ) | | | (0.94 | ) | | | (0.96 | ) | | | (0.26 | ) | | | (0.20 | ) | | |
| Net asset value, endof period | | | $8.05 | | | | | | $9.65 | | | | $10.13 | | | | $10.83 | | | | $10.22 | | | | $10.44 | | | |
| Total Return(c): | | | (13.72 | )% | | | | | (1.93 | )% | | | 2.30 | % | | | 16.52 | % | | | 0.40 | % | | | 6.42 | % | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end ofperiod (000) | | | $239 | | | | | | $275 | | | | $523 | | | | $267 | | | | $103 | | | | $91 | | | |
| Average net assets(000) | | | $275 | | | | | | $397 | | | | $383 | | | | $163 | | | | $99 | | | | $38 | | | |
| Ratios to averagenet assets(d)(e): | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses after waivers and/or expense reimbursement | | | 0.99 | %(f) | | | | | 0.99 | % | | | 0.99 | % | | | 0.99 | % | | | 0.99 | % | | | 0.99 | %(f) | | |
| Expenses before waivers and/or expense reimbursement | | | 4.24 | %(f) | | | | | 3.34 | % | | | 4.24 | % | | | 9.63 | % | | | 17.44 | % | | | 3.39 | %(f) | | |
| Net investmentincome (loss) | | | 1.29 | %(f) | | | | | 1.29 | % | | | 1.42 | % | | | 1.35 | % | | | 1.14 | % | | | 0.85 | %(f) | | |
| Portfolio turnoverrate(g) | | | 10 | % | | | | | 29 | % | | | 16 | % | | | 49 | % | | | 35 | % | | | 66 | % | | |
| (a) | Commencement of operations. |
| (b) | Calculated based on average shares outstanding during the period. |
| (c) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share onthe first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are notannualized. |
| (d) | Does not include expenses of the underlying funds in which the Fund invests. |
| (e) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees,which are charged to their respective share class. |
| (g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard totransactions 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.
50
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended | | | | | | | | | | | | | | | | | December 14, 2016(a)
through | | |
| | | April 30, | | | Year Ended October 31, | | | October 31, | | |
| | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | | |
| | | | | | | | | |
| Per ShareOperating Performance(b): | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value,Beginning of Period | | | $9.65 | | | | | | $10.13 | | | | $10.83 | | | | $10.22 | | | | $10.44 | | | | $10.00 | | | |
| Income (loss)from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investmentincome (loss) | | | 0.02 | | | | | | 0.05 | | | | 0.06 | | | | 0.03 | | | | 0.04 | | | | - | | | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | (1.35 | ) | | | | | (0.31 | ) | | | 0.10 | | | | 1.46 | | | | (0.07 | ) | | | 0.57 | | | |
| Total frominvestment operations | | | (1.33 | ) | | | | | (0.26 | ) | | | 0.16 | | | | 1.49 | | | | (0.03 | ) | | | 0.57 | | | |
| Less Dividendsand Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends from netinvestment income | | | (0.28 | ) | | | | | (0.22 | ) | | | (0.45 | ) | | | (0.88 | ) | | | (0.19 | ) | | | - | | | |
| Tax return ofcapital distributions | | | - | | | | | | - | | | | (0.24 | ) | | | - | | | | - | | | | (0.13 | ) | | |
| Distributions fromnet realized gains | | | - | | | | | | - | | | | (0.17 | ) | | | - | | | | - | | | | - | | | |
| Total dividends anddistributions | | | (0.28 | ) | | | | | (0.22 | ) | | | (0.86 | ) | | | (0.88 | ) | | | (0.19 | ) | | | (0.13 | ) | | |
| Net asset value, endof period | | | $8.04 | | | | | | $9.65 | | | | $10.13 | | | | $10.83 | | | | $10.22 | | | | $10.44 | | | |
| Total Return(c): | | | (14.15 | )% | | | | | (2.66 | )% | | | 1.61 | % | | | 15.65 | % | | | (0.34 | )% | | | 5.73 | % | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end ofperiod (000) | | | $49 | | | | | | $95 | | | | $311 | | | | $45 | | | | $16 | | | | $11 | | | |
| Average net assets(000) | | | $58 | | | | | | $250 | | | | $222 | | | | $31 | | | | $13 | | | | $10 | | | |
| Ratios to averagenet assets(d)(e): | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses after waivers and/or expense reimbursement | | | 1.74 | %(f) | | | | | 1.74 | % | | | 1.74 | % | | | 1.74 | % | | | 1.74 | % | | | 1.74 | %(f) | | |
| Expenses before waivers and/or expense reimbursement | | | 11.44 | %(f) | | | | | 4.44 | % | | | 6.58 | % | | | 43.49 | % | | | 124.78 | % | | | 3.26 | %(f) | | |
| Net investmentincome (loss) | | | 0.54 | %(f) | | | | | 0.54 | % | | | 0.63 | % | | | 0.33 | % | | | 0.41 | % | | | 0.06 | %(f) | | |
| Portfolio turnoverrate(g) | | | 10 | % | | | | | 29 | % | | | 16 | % | | | 49 | % | | | 35 | % | | | 66 | % | | |
| (a) | Commencement of operations. |
| (b) | Calculated based on average shares outstanding during the period. |
| (c) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share onthe first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are notannualized. |
| (d) | Does not include expenses of the underlying funds in which the Fund invests. |
| (e) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees,which are charged to their respective share class. |
| (g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard totransactions 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 International Bond Fund 51
Financial Highlights (unaudited) (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class Z Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended | | | | | | | | | | | | | | | | | December 14, 2016(a)
through | | |
| | | April 30, | | | Year Ended October 31, | | | October 31, | | |
| | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | | |
| | | | | | | | | |
| Per ShareOperating Performance(b): | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value,Beginning of Period | | | $9.65 | | | | | | $10.13 | | | | $10.83 | | | | $10.23 | | | | $10.44 | | | | $10.00 | | | |
| Income (loss)from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investmentincome (loss) | | | 0.07 | | | | | | 0.17 | | | | 0.18 | | | | 0.14 | | | | 0.15 | | | | 0.09 | | | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | (1.34 | ) | | | | | (0.32 | ) | | | 0.09 | | | | 1.45 | | | | (0.07 | ) | | | 0.57 | | | |
| Total frominvestment operations | | | (1.27 | ) | | | | | (0.15 | ) | | | 0.27 | | | | 1.59 | | | | 0.08 | | | | 0.66 | | | |
| Less Dividendsand Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends from netinvestment income | | | (0.33 | ) | | | | | (0.33 | ) | | | (0.56 | ) | | | (0.99 | ) | | | (0.29 | ) | | | - | | | |
| Tax return ofcapital distributions | | | - | | | | | | - | | | | (0.24 | ) | | | - | | | | - | | | | (0.22 | ) | | |
| Distributions fromnet realized gains | | | - | | | | | | - | | | | (0.17 | ) | | | - | | | | - | | | | - | | | |
| Total dividends anddistributions | | | (0.33 | ) | | | | | (0.33 | ) | | | (0.97 | ) | | | (0.99 | ) | | | (0.29 | ) | | | (0.22 | ) | | |
| Net asset value, endof period | | | $8.05 | | | | | | $9.65 | | | | $10.13 | | | | $10.83 | | | | $10.23 | | | | $10.44 | | | |
| Total Return(c): | | | (13.67 | )% | | | | | (1.57 | )% | | | 2.66 | % | | | 16.80 | % | | | 0.75 | % | | | 6.67 | % | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end ofperiod (000) | | | $1,165 | | | | | | $2,537 | | | | $16,104 | | | | $3,466 | | | | $160 | | | | $11 | | | |
| Average net assets(000) | | | $1,728 | | | | | | $6,683 | | | | $10,840 | | | | $1,763 | | | | $140 | | | | $10 | | | |
| Ratios to averagenet assets(d)(e): | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses after waivers and/or expense reimbursement | | | 0.63 | %(f) | | | | | 0.63 | % | | | 0.63 | % | | | 0.74 | % | | | 0.74 | % | | | 0.74 | %(f) | | |
| Expenses before waivers and/or expense reimbursement | | | 2.03 | %(f) | | | | | 1.33 | % | | | 1.31 | % | | | 2.16 | % | | | 12.47 | % | | | 2.24 | %(f) | | |
| Net investmentincome (loss) | | | 1.66 | %(f) | | | | | 1.66 | % | | | 1.74 | % | | | 1.28 | % | | | 1.43 | % | | | 1.09 | %(f) | | |
| Portfolio turnoverrate(g) | | | 10 | % | | | | | 29 | % | | | 16 | % | | | 49 | % | | | 35 | % | | | 66 | % | | |
| (a) | Commencement of operations. |
| (b) | Calculated based on average shares outstanding during the period. |
| (c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each periodreported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
| (d) | Does not include expenses of the underlying funds in which the Fund invests. |
| (e) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees,which are charged to their respective share class. |
| (g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard totransactions 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.
52
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended | | | | | | | | | | | | | | | | | December 14, 2016(a)
through | | |
| | | April 30, | | | Year Ended October 31, | | | October 31, | | |
| | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | | |
| | | | | | | | | |
| Per ShareOperating Performance(b): | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value,Beginning of Period | | | $9.66 | | | | | | $10.13 | | | | $10.84 | | | | $10.23 | | | | $10.44 | | | | $10.00 | | | |
| Income (loss)from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investmentincome (loss) | | | 0.08 | | | | | | 0.17 | | | | 0.19 | | | | 0.18 | | | | 0.14 | | | | 0.09 | | | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | (1.36 | ) | | | | | (0.31 | ) | | | 0.08 | | | | 1.42 | | | | (0.06 | ) | | | 0.57 | | | |
| Total frominvestment operations | | | (1.28 | ) | | | | | (0.14 | ) | | | 0.27 | | | | 1.60 | | | | 0.08 | | | | 0.66 | | | |
| Less Dividendsand Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends from netinvestment income | | | (0.33 | ) | | | | | (0.33 | ) | | | (0.57 | ) | | | (0.99 | ) | | | (0.29 | ) | | | - | | | |
| Tax return ofcapital distributions | | | - | | | | | | - | | | | (0.24 | ) | | | - | | | | - | | | | (0.22 | ) | | |
| Distributions fromnet realized gains | | | - | | | | | | - | | | | (0.17 | ) | | | - | | | | - | | | | - | | | |
| Total dividends anddistributions | | | (0.33 | ) | | | | | (0.33 | ) | | | (0.98 | ) | | | (0.99 | ) | | | (0.29 | ) | | | (0.22 | ) | | |
| Net asset value, endof period | | | $8.05 | | | | | | $9.66 | | | | $10.13 | | | | $10.84 | | | | $10.23 | | | | $10.44 | | | |
| Total Return(c): | | | (13.54 | )% | | | | | (1.53 | )% | | | 2.71 | % | | | 16.81 | % | | | 0.75 | % | | | 6.65 | % | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end ofperiod (000) | | | $27,884 | | | | | | $31,863 | | | | $32,278 | | | | $31,421 | | | | $26,850 | | | | $26,654 | | | |
| Average net assets(000) | | | $30,713 | | | | | | $32,477 | | | | $31,522 | | | | $29,104 | | | | $26,854 | | | | $25,767 | | | |
| Ratios to averagenet assets(d)(e): | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses after waivers and/or expense reimbursement | | | 0.58 | %(f) | | | | | 0.58 | % | | | 0.59 | % | | | 0.74 | % | | | 0.74 | % | | | 0.74 | %(f) | | |
| Expenses before waivers and/or expense reimbursement | | | 1.10 | %(f) | | | | | 1.02 | % | | | 1.13 | % | | | 1.40 | % | | | 1.55 | % | | | 1.99 | %(f) | | |
| Net investmentincome (loss) | | | 1.70 | %(f) | | | | | 1.67 | % | | | 1.84 | % | | | 1.75 | % | | | 1.39 | % | | | 1.07 | %(f) | | |
| Portfolio turnoverrate(g) | | | 10 | % | | | | | 29 | % | | | 16 | % | | | 49 | % | | | 35 | % | | | 66 | % | | |
| (a) | Commencement of operations. |
| (b) | Calculated based on average shares outstanding during the period. |
| (c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each periodreported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
| (d) | Does not include expenses of the underlying funds in which the Fund invests. |
| (e) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees,which are charged to their respective share class. |
| (g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard totransactions 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 International Bond Fund 53
Notes to Financial Statements (unaudited)
Prudential Investment Portfolios 9 (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 Delaware Statutory Trust. These financial statements relate only to the PGIM International Bond Fund (the“Fund”), a series of the RIC. The Fund is classified as a non-diversified fund for purposes of the 1940 Act.
Theinvestment objective of the Fund is to seek total return, made up of current income and capital appreciation.
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 Easterntime) 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 quotationsare readily available. The RIC’s Board of Trustees (the “Board”) has adopted valuation procedures for security valuation under which fair valuation responsibilities have been delegated to PGIM Investments LLC (“PGIMInvestments” or the “Manager”). Pursuant to the Board’s delegation, the Manager has established a Valuation Committee responsible for supervising the fair valuation of portfolio securities and other assets and liabilities. Thevaluation 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 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. A record of the Valuation Committee’s actions is subject to theBoard’s review at its first quarterly meeting following the quarter in which such actions take place.
For the fiscal reportingperiod-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 weekendsand holidays). Because such foreign
54
securities 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 Fundshares.
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 and derivative instruments, if applicable, that are traded on a national securities exchange are valued at the lastsale 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 orNASDAQ official closing price, they are classified as Level 1 in the fair value hierarchy. In the event that no sale or official closing price on valuation date exists, these securities are generally valued at the mean between the last reportedbid 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.
Investments in open-end funds (other than exchange-traded funds) are valued at their net asset values as of the close of the NYSEon 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 valuedusing 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 comparableinstruments 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 utilizingtransaction 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.
OTC and centrally cleared derivative instruments are generally classified as Level 2 in the fair value hierarchy. Such derivative instruments are typically valuedusing 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 alsoincludes 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
PGIM International BondFund 55
Notes to Financial Statements (unaudited) (continued)
derivatives such as interest rate swaps based on a discounted cash flow analysis whereby the value of the instrument isequal 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 futurecash 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, interestrates 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, therewere no changes to report with respect to the valuation approach and/or valuation techniques discussed above.
Securities and other assets that cannot be pricedaccording to the methods described above are valued based on pricing methodologies approved by the Board. In the event that unobservable inputs are used when determining such valuations, the securities will be classified as Level 3 in the fairvalue hierarchy. Altering one or more unobservable inputs may result in a significant change to a Level 3 security’s fair value measurement.
Whendetermining 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 financialcondition 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; anyavailable analyst media or other reports or information deemed reliable by the Manager 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 asecurity’s most recent closing price and from the price used by other unaffiliated mutual funds to calculate their net asset values.
Foreign CurrencyTranslation: 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 thatportion of the results of operations arising as a result of changes in the foreign exchange rates from the
56
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 foreignexchange 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 reportednet 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 foreigncurrency 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 foreigncurrencies, 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 theU.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 forwardrate. 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 denominatedin a foreign currency and to gain 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 crosscurrency 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 fromcurrency 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 thecounterparty 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 prevailinginterest 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. TheFund’s principal reason for writing options is
PGIM International BondFund 57
Notes to Financial Statements (unaudited) (continued)
to realize, through receipt of premiums, a greater current return than would be realized on the underlying securityalone. 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 assetor 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 orpaid 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 purchaseor 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) onoptions 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 thepotential 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 allexchange-traded options and guarantees the options contracts against default.
When the Fund writes an option on a swap, an amount equal to any premium received bythe 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 strikeprice) 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 willbe obligated to be party to a swap agreement if an option on a swap is exercised.
Financial Futures Contracts: A financial futures contract is an agreementto 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 equalto 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 thevalue of the underlying security. Such variation margin is recorded for financial
58
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 realizedgain (loss) on futures transactions.
The Fund invested in financial futures contracts in order to hedge its existing portfolio securities, or securities the Fundintends 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 counterpartycredit 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 returngenerated 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”) orthrough 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 clearedswaps pay or receive an amount known as “variation margin”, based on daily changes in the valuation of the swap contract. For OTC-traded, upfront premiums paid and received are shown as swap premiumspaid 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 ofInvestments.
Interest Rate Swaps: Interest rate swaps represent an agreement between counterparties to exchange cash flows based on the difference betweentwo 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 itsability 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 thediscounted net present value of the cash flows to be received from the counterparty over the contract’s remaining life.
Inflation Swaps: The Fundentered into inflation swap agreements to protect against fluctuations in inflation rates. Inflation swaps are characterized by one party paying a fixed rate in exchange for a floating rate that is derived from an inflation index, such as theConsumer Price Index or UK Retail Price Index. Inflation swaps subject the Fund to interest rate risk.
PGIM International BondFund 59
Notes to Financial Statements (unaudited) (continued)
Credit Default Swaps (“CDS”): CDS involve one party (the protection buyer) making a stream of paymentsto 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 issuesor 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 ofprotection 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 whichrepresents 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 theprotection 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 theswap, 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.
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 thenotional 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 settlementof 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 ofprotection 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 thecredit 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 inabsolute terms, when compared to the notional amount of the swap,
60
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.
Currency Swaps: The Fund entered into currency swap agreements primarily to gain yield exposure on foreign bonds. Currency swap agreements involve twoparties exchanging two different currencies with an agreement to reverse the exchange at a later date at specified exchange rates.
Mortgage-Backed andAsset-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 orindirectly 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-throughcertificates 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 interestrates and may be affected by changes in credit quality or value of the mortgage loans or other assets that support the securities.
Stripped mortgage-backedsecurities 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 interestincome 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 theStatements of Operations. Payments received for POs are treated as reductions to the cost and par value of the securities.
Master Netting Arrangements: TheRIC, 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. Amaster 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 tocover 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 existswhen 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, thereporting 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 thatgovern OTC derivative and foreign exchange contracts entered into from time to time. The Master
PGIM International BondFund 61
Notes to Financial Statements (unaudited) (continued)
Agreements may contain provisions regarding, among other things, the parties’ general obligations, representations,agreements, collateral requirements, events of default and early termination. With respect to certain counterparties, in accordance with the terms of the Master Agreements, collateral posted to the Fund is held in a segregated account by theFund’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 custodianand 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. Collateralrequirements 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 andcause 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 theFund’s counterparties to elect early termination could impact the Fund’s future derivative activity.
In addition to each instrument’s primaryunderlying 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 forthese 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 theseagreements, 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 ofdefault 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 bythe counterparty for early termination of the contract(s) may impact the amounts reported on financial statements.
Short sales and OTC contracts, including forwardforeign 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 bemitigated by engaging in master netting arrangements.
Payment-In-Kind: TheFund invested in the open market or received pursuant to debt restructuring, securities that pay-in-kind (PIK) the interest due on such debt instruments. The PIKinterest, computed at the contractual rate specified, is added to the existing
62
principal balance of the debt when issued bonds have 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.
Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized gains (losses) from investment andcurrency 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 managementthat may differ from actual. 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 therelative 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 includedistribution 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 todistribute 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, netof reclaimable amounts, at the time the related income is earned.
Dividends and Distributions: Dividends and distributions to shareholders, which aredetermined 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 reclassifiedbetween 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 | | Monthly |
| 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 gainsduring a fiscal year. |
Estimates: The preparation of financial statements requires management to make estimates and assumptions that affectthe reported amounts and disclosures in the financial
PGIM International BondFund 63
Notes to Financial Statements (unaudited) (continued)
statements. Actual results could differ from those estimates.
The RIC, on behalf of the Fund, has a management agreement with the Manager. Pursuant to this agreement, the Manager has responsibility for all investment advisoryservices and supervises the subadviser’s performance of such services.
The Manager has entered into a subadvisory agreement with PGIM, Inc., which providessubadvisory services to the Fund through its business unit PGIM Fixed Income, and PGIM Limited (collectively referred to herein as the “subadviser”). The Manager pays for the services of the subadviser.
Fees payable under the management agreement are computed daily and paid monthly. For the reporting period ended April 30, 2022, the contractual and effectivemanagement fee rates were as follows:
| | |
| Contractual Management Rate | | Effective Management Fee, before any waivers and/or expense reimbursements |
| 0.50% of the Fund’s average daily net assets up to $2 billion; and | | 0.50% |
| 0.485% of the Fund’s average daily net assets over $2 billion. | | |
The Manager has contractually agreed, through February 28, 2023, to limit total annual operating expenses after fee waivers and/orexpense 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 Fundexpenses such as dividend and interest expense and broker charges on short sales.
Where applicable, the Manager agrees to waive management fees or shared operatingexpenses 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. Feesand/or expenses waived and/or reimbursed by the Manager 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 effectat the time of the recoupment for the fiscal year. The expense limitations attributable to each class are as follows:
| | |
| Class | | Expense Limitations |
| A | | 0.99% |
64
| | |
| Class | | Expense Limitations |
| C | | 1.74% |
| Z | | 0.63 |
| R6 | | 0.58 |
The RIC, on behalf of the Fund, has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), whichacts as the distributor of the Class A, Class C, Class Z and Class R6 shares of the Fund. The Fund compensates PIMS for distributing and servicing the Fund’s Class A and Class C shares, pursuant to the plans ofdistribution (the “Distribution Plans”), regardless of expenses actually incurred by PIMS.
Pursuant to the Distribution Plans, the Fund compensates PIMSfor distribution related activities at an annual rate based on average daily net assets per class. The distribution fees are accrued daily and payable monthly.
TheFund’s annual gross and net distribution rate, where applicable, are as follows:
| | | | |
| Class | | Gross Distribution Fee | | Net Distribution Fee |
| A | | 0.25% | | 0.25% |
| C | | 1.00 | | 1.00 |
| Z | | N/A | | N/A |
| R6 | | N/A | | N/A |
For the reporting period ended April 30, 2022, 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 turnpaid commissions to salespersons and incurred other distribution costs. The sales charges are as follows where applicable:
| | | | |
| Class | | FESL | | CDSC |
| A | | $15 | | $— |
| C | | — | | — |
PGIM Investments, PGIM, Inc., PGIM Limited and PIMS 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’stransfer agent. Transfer agent’s fees and expenses in the Statement of Operations include certain out-of-pocket expenses paid tonon-affiliates, where applicable.
The Fund may invest its overnight sweep cash in the PGIM Core Ultra Short Bond Fund (the“Core Fund”), a fund of Prudential Investment Portfolios 2, registered under the 1940 Act and managed by PGIM Investments. PGIM Investments and/or its affiliates are paid fees or
PGIM International BondFund 65
Notes to Financial Statements (unaudited) (continued)
reimbursed for providing their services to the Core Fund. In addition to the realized and unrealized gains oninvestments in the Core Fund, earnings from such investments are disclosed on the Statement of Operations as “Affiliated dividend income”. Effective January 2022, the Fund changed its overnight cash sweep vehicle from the Core Fund to anunaffiliated money market fund.
The Fund may enter into certain securities purchase or sale transactions under Board approved Rule17a-7 procedures. Rule 17a-7 is an exemptive rule under the 1940 Act, that subject to certain conditions, permits purchase and sale transactions among affiliatedinvestment 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 reporting period endedApril 30, 2022, no 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 periodended April 30, 2022, were as follows:
| | |
| Cost of Purchases | | Proceeds from Sales |
| $2,925,980 | | $3,358,392 |
A summary of the cost of purchases and proceeds from sales of shares of an affiliated mutual fund for the reporting period endedApril 30, 2022, is presented as follows:
| | | | | | | | | | | | | | |
| Value, Beginning of Period | | Cost of Purchases | | Proceeds from Sales | | Change in Unrealized Gain (Loss) | | Realized Gain (Loss) | | Value, End of Period | | Shares, End of Period | | Income |
|
| Short-Term Investments - Affiliated Mutual Fund: |
|
| PGIM Core Ultra Short Bond Fund(1)(wb) |
| $30,869 | | $2,992,822 | | $3,023,691 | | $— | | $— | | $— | | — | | $156 |
| (1) | The Fund did not have any capital gain distributions during the reporting period. |
| (wb) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Ultra Short Bond Fund. |
66
The United States federal income tax basis of the Fund’s investments and the net unrealized depreciation as of April 30, 2022 were as follows:
| | | | | | | | | | |
| Tax Basis | | Gross Unrealized Appreciation | | | | Gross Unrealized Depreciation | | | | Net Unrealized Depreciation |
| $33,272,303 | | $2,261,055 | | | | $(7,393,815) | | | | $(5,132,760) |
The GAAP basis may differ from tax basis due to certain tax-related adjustments.
For federal income tax purposes, the Fund had a capital loss carryforward as of October 31, 2021 of approximately $671,000 which can be carried forward for anunlimited period. The Fund utilized approximately $909,000 of its capital loss carryforward to offset net taxable gains realized in the fiscal year ended October 31, 2021. No capital gains distributions are expected to be paid to shareholdersuntil net gains have been realized in excess of such losses.
The Manager has analyzed the Fund’s tax positions taken on federal, state and local income taxreturns for all open tax years and has concluded that no provision for income tax is required in the Fund’s financial statements for the current reporting period. Since tax authorities can examine previously filed tax returns, the Fund’sU.S. federal and state tax returns for each of the four fiscal years up to the most recent fiscal year ended October 31, 2021 are subject to such review.
The Fund offers Class A, Class C, Class Z and Class R6 shares . Class A shares are sold with a maximumfront-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 contingent deferred sales charge(“CDSC”) of 1.00% 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 exchangeprivilege 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 convertto Class A shares on a monthly basis approximately eight years (ten years prior to January 22, 2021) after purchase. Class Z and Class R6 shares are not subject to any sales or redemption charges and are available exclusively forsale 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 shareclasses of the Fund as presented in the table of transactions in shares of beneficial interest, below.
The RIC has authorized an unlimited number of shares ofbeneficial interest of the Fund at $0.001 par value per share, currently divided into four classes, designated Class A, Class C, Class Z and Class R6.
PGIM International BondFund 67
Notes to Financial Statements (unaudited) (continued)
As of April 30, 2022, 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 |
| C | | 1,287 | | 21.1% |
| R6 | | 3,407,552 | | 98.4 |
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 | | 1 | | 93.5% |
| Unaffiliated | | — | | — |
Transactions in shares of beneficial interest were as follows:
| | | | | | | | |
| | | |
| Share Class | | Shares | | | Amount | |
| | |
| Class A | | | | | | | | |
| Six months ended April 30, 2022: | | | | | | | | |
| Shares sold | | | 4,866 | | | $ | 46,036 | |
| Shares issued in reinvestment of dividends and distributions | | | 981 | | | | 9,030 | |
| Shares purchased | | | (4,641 | ) | | | (41,471 | ) |
| Net increase (decrease) in shares outstanding | | | 1,206 | | | $ | 13,595 | |
| | |
| Year ended October 31, 2021: | | | | | | | | |
| Shares sold | | | 21,689 | | | $ | 223,463 | |
| Shares issued in reinvestment of dividends and distributions | | | 1,136 | | | | 11,418 | |
| Shares purchased | | | (45,960 | ) | | | (468,504 | ) |
| Net increase (decrease) in shares outstanding | | | (23,135 | ) | | $ | (233,623 | ) |
68
| | | | | | | | |
| | | |
| Share Class | | Shares | | | Amount | |
| | |
| Class C | | | | | | | | |
| Six months ended April 30, 2022: | | | | | | | | |
| Shares sold | | | 3,601 | | | $ | 34,634 | |
| Shares issued in reinvestment of dividends and distributions | | | 168 | | | | 1,549 | |
| Shares purchased | | | (2,241 | ) | | | (20,857 | ) |
| Net increase (decrease) in shares outstanding before conversion | | | 1,528 | | | | 15,326 | |
| Shares purchased upon conversion into other shareclass(es) | | | (5,334 | ) | | | (51,847 | ) |
| Net increase (decrease) in shares outstanding | | | (3,806 | ) | | $ | (36,521 | ) |
| | |
| Year ended October 31, 2021: | | | | | | | | |
| Shares issued in reinvestment of dividends and distributions | | | 532 | | | $ | 5,336 | |
| Shares purchased | | | (12,035 | ) | | | (119,657 | ) |
| Net increase (decrease) in shares outstanding before conversion | | | (11,503 | ) | | | (114,321 | ) |
| Shares purchased upon conversion into other shareclass(es) | | | (9,268 | ) | | | (92,894 | ) |
| Net increase (decrease) in shares outstanding | | | (20,771 | ) | | $ | (207,215 | ) |
| | |
| Class Z | | | | | | | | |
| Six months ended April 30, 2022: | | | | | | | | |
| Shares sold | | | 9,770 | | | $ | 88,917 | |
| Shares issued in reinvestment of dividends and distributions | | | 6,891 | | | | 63,858 | |
| Shares purchased | | | (140,058 | ) | | | (1,311,148 | ) |
| Net increase (decrease) in shares outstanding before conversion | | | (123,397 | ) | | | (1,158,373 | ) |
| Shares issued upon conversion from other shareclass(es) | | | 5,334 | | | | 51,847 | |
| Net increase (decrease) in shares outstanding | | | (118,063 | ) | | $ | (1,106,526 | ) |
| | |
| Year ended October 31, 2021: | | | | | | | | |
| Shares sold | | | 203,980 | | | $ | 2,083,183 | |
| Shares issued in reinvestment of dividends and distributions | | | 21,985 | | | | 221,149 | |
| Shares purchased | | | (1,559,263 | ) | | | (15,844,416 | ) |
| Net increase (decrease) in shares outstanding before conversion | | | (1,333,298 | ) | | | (13,540,084 | ) |
| Shares issued upon conversion from other shareclass(es) | | | 6,534 | | | | 65,645 | |
| Net increase (decrease) in shares outstanding | | | (1,326,764 | ) | | $ | (13,474,439 | ) |
PGIM International BondFund 69
Notes to Financial Statements (unaudited) (continued)
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| Share Class | | Shares | | | Amount | |
| | |
| Class R6 | | | | | | | | |
| Six months ended April 30, 2022: | | | | | | | | |
| Shares sold | | | 104,482 | | | $ | 963,509 | |
| Shares issued in reinvestment of dividends and distributions | | | 120,541 | | | | 1,108,775 | |
| Shares purchased | | | (61,347 | ) | | | (554,509 | ) |
| Net increase (decrease) in shares outstanding | | | 163,676 | | | $ | 1,517,775 | |
| | |
| Year ended October 31, 2021: | | | | | | | | |
| Shares sold | | | 4,585 | | | $ | 45,097 | |
| Shares issued in reinvestment of dividends and distributions | | | 107,453 | | | | 1,074,109 | |
| Shares purchased | | | (518 | ) | | | (5,107 | ) |
| Net increase (decrease) in shares outstanding before conversion | | | 111,520 | | | | 1,114,099 | |
| Shares issued upon conversion from other share class(es) | | | 2,733 | | | | 27,249 | |
| Net increase (decrease) in shares outstanding | | | 114,253 | | | $ | 1,141,348 | |
The RIC, on behalf of the Fund, along with other affiliated registered investment companies (the “Participating Funds”), is a party to a Syndicated CreditAgreement (“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.
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| | | | | SCA |
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| Term of Commitment | | | | 10/1/2021 – 9/29/2022 |
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| Total Commitment | | | | $ 1,200,000,000 |
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Annualized Commitment Fee on
the Unused Portion of the SCA | | | | 0.15% |
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| Annualized Interest Rate onBorrowings | | | | 1.20% plus the higher of (1) the effective federal funds rate, (2) the one-month LIBOR rate or (3) zero percent |
Certain affiliated registered investment companies that are parties to the SCA include portfolios that are subject to a predeterminedmathematical 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 utilizethe 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 theParticipating Funds in the SCA equitably.
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The Fund did not utilize the SCA during the reporting period ended April 30, 2022.
| 9. | Risks of Investing in the Fund |
The Fund’s 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 theFund’s Prospectus and Statement of Additional Information.
Credit Risk/Counterparty Risk: The ability, or perceived ability, of the issuer or guarantorof a debt security, or the counterparty (the party on the other side of the transaction) to a derivatives contract or other financial contract to meet its financial obligations will affect the value of the security or derivative. Counterparty andcredit risk are especially important in the context of privately negotiated instruments. The Fund expects to enter into certain privately negotiated agreements where the counterparty assumes the physical settlement obligations of the Fund under suchtransactions. Under this type of arrangement, there is a risk that the relevant counterparty or intermediary would, due to insolvency or other reasons, be unable to or fail to assume the physical settlement obligations of the Fund, in which case theFund could be required to sell portfolio instruments at unfavorable times or prices or could have insufficient assets to satisfy its physical settlement obligations.
Credit ratings are intended to provide a measure of credit risk. However, credit ratings are only the opinions of the credit rating agency issuing the ratings and arenot guarantees as to quality. The lower the rating of a debt security held by the Fund, the greater the degree of credit risk that is perceived to exist by the credit rating agency with respect to that security. Increasing the amount of Fund assetsallocated to lower-rated securities generally will increase the credit risk to which the Fund is subject. Not all securities in which the Fund invests are rated. The lower the credit quality of a bond, the more sensitive it is to credit risk.
Currency Risk: The Fund’s net asset value could decline as a result of changes in exchange rates, which could adversely affect the Fund’s investments incurrencies, or in securities that trade in, and receive revenues related to, currencies, or in derivatives that provide exposure to currencies. Certain foreign countries may impose restrictions on the ability of issuers of foreign securities to makepayment of principal and interest or dividends to investors located outside the country, due to blockage of foreign currency exchanges or otherwise.
DebtObligations Risk: Debt obligations 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 maydecline 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 redemptionrisk,” which is the risk that the issuer may call a bond held by the Fund for redemption before it matures and the Fund may lose 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
PGIM International BondFund 71
Notes to Financial Statements (unaudited) (continued)
extent that derivatives are used, the Fund will depend on the subadviser’s ability to analyze and managederivatives transactions. The prices of derivatives may move in unexpected ways, especially in abnormal market conditions. Some derivatives are “leveraged” and therefore may magnify or otherwise increase investment losses to the Fund. TheFund’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 theFund’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 U.S. Government and foreign governments have adopted (and may adopt further) regulations governing derivatives markets, including mandatory clearing of certainderivatives, margin and reporting requirements and risk exposure limitations. The ultimate impact of the regulations remains unclear. Additional regulation of derivatives may make derivatives more costly, limit their availability or utility, orotherwise adversely affect their performance or disrupt markets.
Economic and Market Events Risk: Events in the U.S. and global financial markets, includingactions taken by the U.S. Federal Reserve or foreign central banks to stimulate or stabilize economic growth or the functioning of the securities markets, may at times result in unusually high market volatility, which could negatively impactperformance. Relatively reduced liquidity in credit and fixed income markets could adversely affect issuers worldwide.
Emerging Markets Risk: The risks offoreign investments are greater for investments in or exposed to emerging markets. Emerging market countries typically have economic and political systems that are less fully developed, and can be expected to be less stable, than those of moredeveloped countries. For example, the economies of such countries can be subject to rapid and unpredictable rates of inflation or deflation. Low trading volumes may result in a lack of liquidity and price volatility. Emerging market countries mayhave policies that restrict investment by non-U.S. investors, or that prevent non-U.S. investors from withdrawing their money at will.
The Fund may invest in some emerging markets that subject it to risks such as those associated with illiquidity, custody of assets, different settlement and clearanceprocedures and asserting legal title under a developing legal and regulatory regime to a greater degree than in developed markets or even in other emerging markets.
Foreign Securities Risk: Investments in securities of non-U.S. issuers (including those denominated in U.S. dollars) mayinvolve more risk than investing in securities of U.S.
72
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 legalsystems 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. companiesthan 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 foreigncurrencies 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 ofprincipal 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 expropriationof 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 mayapply.
Futures and Forward Contracts Risk: The primary risks associated with the use of futures or forward contracts are (a) the imperfect correlationbetween the change in market value of the instruments held by the Fund and the price of the futures or forward contract; (b) possible lack of a liquid secondary market for a futures or forward contract and the resulting inability to close afutures or forward contract when desired; (c) losses caused by unanticipated market movements, which are potentially unlimited; (d) the failure to predict correctly the direction of securities or commodities prices, interest rates,currency exchange rates and other economic factors; and (e) the possibility that the counterparty to the futures or forward contract will default in the performance of its obligations. Additionally, not all forward contracts require acounterparty to post collateral, which may expose the Fund to greater losses in the event of a default by a counterparty.
Increase in Expenses Risk: Youractual 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. Netassets 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 termor duration debt securities. For 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 interestrates 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.” When interest ratesrise, debt obligations may be repaid more slowly than expected, and the value of the Fund’s holdings
PGIM International BondFund 73
Notes to Financial Statements (unaudited) (continued)
may fall sharply. This is referred to as “extension risk.” The Fund may lose money if short-term or long-terminterest rates rise sharply or in a manner not anticipated by the subadviser.
Junk Bonds Risk: High-yield, high-risk bonds have predominantly speculativecharacteristics, including particularly high credit risk. Junk bonds tend to have lower market liquidity than higher-rated securities. The liquidity of particular issuers or industries within a particular investment category may shrink or disappearsuddenly and without warning. The non-investment grade bond market can experience sudden and sharp price swings and become illiquid due to a variety of factors, including changes in economic forecasts, stockmarket activity, large sustained sales by major investors, a high profile default or a change in the market’s psychology.
Large Shareholder and Large ScaleRedemption 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 Fundin 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 implementits 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.
Leverage Risk: Certain transactions in which the Fund may engage may give rise to leverage. The use of leverage exaggerates the effect of any increase or decreasein the value of the Fund’s holdings, and makes any change in the Fund’s net asset value (“NAV”) greater than it would be without the use of leverage. This could result in increased volatility of investment return. There is apossibility that segregation involving a large percentage of the assets of the Fund could impede portfolio management or the Fund’s ability to meet redemption requests or other current obligations or that the Fund may be required to dispose ofsome of its investments at unfavorable prices or times.
Liquidity Risk: Liquidity risk is the risk that the Fund could not meet requests to redeem sharesissued by the Fund without significant dilution of remaining investors’ interests in the Fund. The Fund may invest in instruments that trade in lower volumes and are more illiquid than other investments. If the Fund is forced to sell theseinvestments to pay redemption proceeds or for other reasons, the Fund may lose money. In addition, when there is no willing buyer and investments cannot be readily sold at the desired time or price, the Fund may have to accept a lower price or maynot be able to sell the instrument at all. An inability
74
to sell a portfolio position can adversely affect the Fund’s value or prevent the Fund from being able to take advantage of other investment opportunities.
Management Risk: The value of your investment may decrease if judgments by the subadviser about the attractiveness, value or market trends affecting a particularsecurity, industry or sector or about market movements are incorrect.
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), geopolitical developments (including trading and tariff arrangements, sanctions andcybersecurity 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 theFund. 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 forcertain 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 orwith 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 ofcertain securities held by the Fund could be significantly impacted, which could lead to such securities being valued at zero.
COVID-19 and the related governmental and public responses have had and may continue to have an impact on the Fund’sinvestments and net asset value and have led and may continue to lead to increased market volatility and the potential for illiquidity in certain classes of securities and sectors of the market. They have also had and may continue to result inperiods of business disruption, business closures, inability to obtain raw materials, supplies and component parts, and reduced or disrupted operations for the issuers in which the Fund invests. The occurrence, reoccurrence and pendency of publichealth epidemics could adversely affect the economies and financial markets either in specific countries or worldwide.
Market Risk: Securities markets may bevolatile 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 ownedby the Fund fall, the value of your investment in the Fund will decline.
Mortgage-Backed and Asset-Backed Securities Risk: Mortgage-backed and asset-backedsecurities 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
PGIM International BondFund 75
Notes to Financial Statements (unaudited) (continued)
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.
Non-Diversified Investment Company Risk: The Fund is non-diversified for purposesof the 1940 Act. This means that the Fund may invest a greater percentage of its assets in the securities of a single company or other issuer than a diversified fund. Investing in a non-diversified fundinvolves greater risk than investing in a diversified fund because a loss resulting from the decline in value of any one security may represent a greater portion of the total assets of a non-diversified fund.
Short Position Risk: The Fund may take short positions in derivative instruments that present various risks, including credit/counterparty risk and leveragerisk. A short position on a derivative instrument involves the risk of a theoretically unlimited increase in the value of the underlying security or instrument and, thus, the risk of a theoretically unlimited loss for the Fund. Short positions alsoinvolve transaction and other costs that will reduce potential Fund gains and increase potential Fund losses.
Sovereign Debt Risk: The Fund may invest insovereign debt issued by governments, their agencies or instrumentalities, or other government-related entities. Holders of sovereign debt may be requested to participate in the rescheduling of such debt and to extend further loans to governmentalentities. In addition, there is no bankruptcy proceeding by which defaulted sovereign debt may be collected.
| 10. | Recent Accounting Pronouncement and Regulatory Developments |
In March 2020, the FASB issued Accounting Standard Update (“ASU”) No. 2020-04, which provides optional guidance forapplying GAAP to contract modifications, hedging relationships and other transactions affected by the reference rate reform if certain criteria are met. ASU 2020-04 is elective and is effective onMarch 12, 2020 through December 31, 2022. Management does not expect ASU 2020-04 to have a material impact on the financial statements.
On December 3, 2020, the SEC announced that it voted to adopt a new rule that establishes an updated regulatory framework for fund valuation practices (the“Rule”). The Rule, in part, provides (i) a framework for determining fair value in good faith and (ii) provides for a fund Board’s assignment of its responsibility for the execution of valuation-related activities to afund’s investment adviser. Further, the SEC is rescinding previously issued guidance on
76
related issues. The Rule took effect on March 8, 2021, with a compliance date of September 8, 2022. Management is currently evaluating the Rule and its impact to the Fund.
PGIM International BondFund 77
Liquidity Risk Management Program (unaudited)
Consistent with Rule 22e-4 under the 1940 Act (the “Liquidity Rule”), the Fund has adopted and implemented a liquidityrisk management program (the “LRMP”). The Fund’s LRMP seeks to assess and manage the Fund’s liquidity risk, which is defined as the risk that the Fund is unable to meet investor redemption requests without significantly dilutingthe remaining investors’ interests in the Fund. The Board has approved PGIM Investments LLC (“PGIM Investments”), the Fund’s investment manager, to serve as the administrator of the Fund’s LRMP. As part of itsresponsibilities as administrator, PGIM Investments has retained a third party to perform certain functions, including providing market data and liquidity classification model information.
The Fund’s LRMP includes a number of processes designed to support the assessment and management of its liquidity risk. In particular, the Fund’s LRMP includesno less than annual assessments of factors that influence the Fund’s liquidity risk; no less than monthly classifications of the Fund’s investments into one of four liquidity classifications provided for in the Liquidity Rule; a 15% of netassets limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); establishment of a minimum percentage of the Fund’s assets to be invested in investments classified as “highly liquid” (asdefined under the Liquidity Rule) if the Fund does not invest primarily in highly liquid investments; and regular reporting to the Board.
At a meeting of the Boardon March 1-3, 2022, PGIM Investments provided a written report (“LRMP Report”) to the Board addressing the operation, adequacy, and effectiveness of the Fund’s LRMP, including any materialchanges to the LRMP for the period from January 1, 2021 through December 31, 2021 (“Reporting Period”). The LRMP Report concluded that the Fund’s LRMP was reasonably designed to assess and manage the Fund’s liquidityrisk and was adequately and effectively implemented during the Reporting Period. There were no material changes to the LRMP during the Reporting Period. The LRMP Report further concluded that the Fund’s investment strategies continue to beappropriate given the Fund’s status as an open-end fund.
There can be no assurance that the LRMP will achieve itsobjectives in the future. Additional information regarding risks of investing in the Fund, including liquidity risks presented by the Fund’s investment portfolio, is found in the Fund’s Prospectus and Statement of Additional Information.
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⬛ MAIL 655 Broad Street Newark, NJ 07102 | | ⬛ TELEPHONE (800) 225-1852 | | ⬛ WEBSITE pgim.com/investments |
PROXY VOTING
The Board of Trustees of the Fund has delegated to the Fund’s subadvisers the responsibility for voting anyproxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852 or byvisiting the Securities and Exchange Commission’s website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period endedJune 30 is available on the Fund’s website and on the Securities and Exchange Commission’s website.
TRUSTEES
Ellen S. Alberding ● Kevin J. Bannon ● Scott E. Benjamin ● Linda W. Bynoe ● Barry H. Evans ● Keith F. Hartstein ● Laurie Simon Hodrick ●
Stuart S. Parker ● Brian K. Reid ● Grace C. Torres
OFFICERS
Stuart S. Parker,President ● Scott E. Benjamin, Vice President ● Christian J.Kelly, Treasurer and Principal Financial and Accounting Officer ●
Claudia DiGiacomo, Chief Legal Officer ● Isabelle Sajous,Chief Compliance Officer ● Jonathan Corbett, Anti-Money Laundering Compliance Officer ●
Andrew R. French, Secretary ● Melissa Gonzalez, Assistant Secretary ● Diana N. Huffman, AssistantSecretary ● Kelly A. Coyne, Assistant Secretary ●
Patrick E. McGuinness, Assistant Secretary ● Debra Rubano,Assistant Secretary ● Lana Lomuti, Assistant Treasurer ●
Russ Shupak, Assistant Treasurer ● ElyseM. McLaughlin, Assistant Treasurer ● Deborah Conway, Assistant Treasurer
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| MANAGER | | PGIM Investments LLC | | 655 Broad Street Newark, NJ 07102 |
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| SUBADVISERS | | PGIM Fixed Income | | 655 Broad Street Newark, NJ07102 |
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| | | PGIM Limited | | Grand Buildings, 1-3 Strand Trafalgar Square London, WC2N 5HR United Kingdom |
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| DISTRIBUTOR | | Prudential Investment Management Services LLC | | 655 Broad Street Newark, NJ 07102 |
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| CUSTODIAN | | The Bank of New York Mellon | | 240 Greenwich Street New York, NY 10286 |
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| TRANSFER AGENT | | Prudential Mutual Fund Services LLC | | PO Box 9658 Providence, RI 02940 |
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| INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | | PricewaterhouseCoopers LLP | | 300 Madison Avenue New York, NY 10017 |
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| FUND COUNSEL | | Willkie Farr & Gallagher LLP | | 787 Seventh Avenue New York, NY 10019 |
An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully beforeinvesting. The prospectus and summary prospectus contain this and other information about the Fund. An investor may obtain the prospectus and summary prospectus by visiting our website at pgim.com/investments or by calling (800)225-1852. The prospectus and summary prospectus should be read carefully before investing.
E-DELIVERY
To receive your mutual fund documents online, go to pgim.com/investments/resource/edeliveryand enroll. Instead of receiving printed documents by mail, you will receive notification via email when new materials are available. You can cancel your enrollment or change your email address at any time by visiting the website address above.
SHAREHOLDER COMMUNICATIONS WITH TRUSTEES
Shareholders can communicate directly with the Board of Trustees by writing to the Chair of the Board, PGIM International Bond Fund,PGIM Investments, Attn: Board of Trustees, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Trustee by writing to that Trustee at the same address. Communications are not screened before being delivered tothe addressee.
AVAILABILITY OF PORTFOLIO HOLDINGS
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission on Form N-PORT. The Fund’s Form N-PORT filings are available on the Commission’s website at sec.gov. Form N-PORT is filed with theCommission quarterly, and each Fund’s full portfolio holdings as of the first and third fiscal quarter-ends will be made publicly available 60 days after the end of each quarter at sec.gov.
Mutual Funds:
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ARE NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY | | MAY LOSE VALUE | | ARE NOT A DEPOSIT OFOR GUARANTEED BY ANY BANK OR ANY BANK AFFILIATE |
PGIM INTERNATIONAL BOND FUND
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| SHARE CLASS | | A | | C | | Z | | R6 |
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| NASDAQ | | PXBAX | | PXBCX | | PXBZX | | PXBQX |
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| CUSIP | | 74441J738 | | 74441J720 | | 74441J696 | | 74441J712 |
MF234E2
PGIM REAL ESTATE INCOME FUND
SEMIANNUAL REPORT
APRIL 30, 2022
To enroll in e-delivery, go topgim.com/investments/resource/edelivery
Table of Contents
This report is not authorized for distribution to prospectiveinvestors unless preceded or accompanied by a current prospectus.
The information about the Fund’s portfolio holdings is for the period covered by this reportand is subject to change thereafter.
The accompanying financial statements as of April 30, 2022 were not audited and, accordingly, no auditor’s opinion isexpressed on them.
Mutual funds are distributed by Prudential Investment Management Services LLC, (PIMS), member SIPC. PGIM Real Estate is a unit of PGIM, Inc.(PGIM), a registered investment adviser. PIMS and PGIM are Prudential Financial companies. © 2022 Prudential Financial, Inc. and its related entities. PGIM Real Estate, PGIM, and the PGIMlogo are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
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| 2 | | Visit our website at pgim.com/investments |
Letter from the President
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 | | Dear Shareholder: We hope you find the semiannual report for the PGIM Real Estate Income Fund informative and useful. The report covers performance for the six-monthperiod ended April 30, 2022. Regarding your investments with PGIM, webelieve it is important to maintain a diversified portfolio of funds consistent with your tolerance for risk, time horizon, and financial goals. |
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| Your financial advisor can help you create a diversified investment plan that may include funds covering all the basic asset classes andthat reflects your personal investor profile and risk tolerance. However, diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets. At PGIM Investments, we provide access to active investment strategies across the global markets inthe pursuit of consistent outperformance for investors. PGIM is a top-10 investment manager globally with more than $1.5 trillion in assets under management. Our scale and investment expertise allow us todeliver a diversified suite of actively managed solutions across a broad spectrum of asset classes and investment styles. Thank you for choosing our family of funds. Sincerely, 
Stuart S. Parker, President PGIM Real Estate Income Fund June 15, 2022 |
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| PGIM Real Estate Income Fund | | | 3 | |
Your Fund’s Performance
Performance data quoted represent past performance. Past performance does not guarantee futureresults. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the pastperformance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at pgim.com/investments or by calling (800) 225-1852.
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| | | Total Returns as of 4/30/22
(without sales charges) Six Months* (%) | | Average Annual Total Returns as of 4/30/22 (with sales charges) |
| | | One Year (%) | | Five Years (%) | | Since Inception (%) |
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| Class A | | -6.76 | | -6.99 | | 3.76 | | 3.68 (06/03/2015) |
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| Class C | | -7.24 | | -3.19 | | 4.13 | | 3.75 (06/03/2015) |
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| Class Z | | -6.75 | | -1.46 | | 5.20 | | 4.81 (06/03/2015) |
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| Class R6 | | -6.76 | | -1.46 | | 5.16 | | 5.83 (12/28/2016) |
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| Custom Blend Index | | | | | | | | |
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| | | -7.22 | | -1.09 | | 4.68 | | — |
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| Average Annual Total Returns as of 4/30/22 Since Inception (%) |
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| | | Class A, Class C, Class Z (06/03/2015) | | Class R6 (12/28/2016) |
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| Custom Blend Index | | 4.43 | | 5.15 |
*Not annualized
Since Inception returns are providedfor any share class with 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.
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| 4 | | Visit our website at pgim.com/investments |
The returns in the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions orfollowing the redemption of Fund shares. The average annual total returns take into account applicable sales charges, which are described for each share class in the table below.
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| | | Class A | | Class C | | Class Z | | Class R6 |
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| Maximum initial sales charge | | 5.50% of the public offering price | | None | | None | | None |
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| Contingent deferred sales charge (CDSC) (as a percentage of the lower of the originalpurchase price or the net asset value at redemption) | | 1.00% on sales of $1 million or more made within 12 months of purchase | | 1.00% on sales made within 12 months of purchase | | None | | None |
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| Annual distribution and service (12b-1) fees (shownas a percentage of average daily net assets) | | 0.30% (0.25% currently) | | 1.00% | | None | | None |
Benchmark Definition
Custom Blend Index—The Custom Blend Index is a model portfolio consisting of the FTSE EPRA/NAREIT Developed Index (80%), which is an unmanaged index andreflects the stock performance of companies engaged in specific aspects of the major real estate markets/regions of the world, and the BofA Merrill Lynch 7% Constrained REIT Preferred Securities Index (20%), which is an unmanaged index that is asubset of the BofA Merrill Lynch Fixed Rate Preferred Securities Index including all REIT-issued preferred securities.
Investors cannot invest directly in an index.The returns for the Index would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes that may be paid by an investor.
| | | | |
| PGIM Real Estate Income Fund | | | 5 | |
Your Fund’s Performance (continued)
Presentation of Fund Holdings as of 4/30/22
| | | | |
| | |
| Ten Largest Holdings | | Real Estate Sector | | % of Net Assets |
| | |
| EPR Properties | | Specialized REITs | | 6.2% |
| | |
| Omega Healthcare Investors, Inc. | | Health Care REITs | | 4.8% |
| | |
| Gaming & Leisure Properties, Inc. | | Specialized REITs | | 4.7% |
| | |
| Global Medical REIT, Inc. | | Health Care REITs | | 4.7% |
| | |
| EPR Properties, Series G | | Specialized REITs | | 4.5% |
| | |
| VICI Properties, Inc. | | Specialized REITs | | 4.3% |
| | |
| CapitaLand Integrated Commercial Trust (Singapore) | | Retail REITs | | 4.1% |
| | |
| Postal Realty Trust, Inc. (Class A Stock) | | Office REITs | | 3.8% |
| | |
| Community Healthcare Trust, Inc. | | Health Care REITs | | 3.8% |
| | |
| Sun Hung Kai Properties Ltd. (Hong Kong) | | Diversified Real Estate Activities | | 3.8% |
Holdings reflect only long-term investments and are subject to change.
| | |
| 6 | | Visit our website at pgim.com/investments |
Fees and Expenses
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, includingsales charges (loads) on purchase payments and redemptions, as applicable, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses, asapplicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 held through the six-month period ended April 30, 2022. The example is forillustrative purposes only; you should consult the Prospectus for information on initial and subsequent minimum investment requirements.
Actual Expenses
The first line for each share class in the table on the following page provides information about actual account values and actual expenses. You may use the informationon this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result bythe number on the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line for each shareclass in the table on the following page provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not theFund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in theFund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
The Fund’s transfer agent may charge additional fees to holders of certain accounts that are not included in the expenses shown in the table on the following page.These fees apply to individual retirement accounts (IRAs) and Section 403(b) accounts. As of the close of the six-month period covered by the table, IRA fees included an annual maintenance fee of $15 peraccount (subject to a maximum annual maintenance fee of $25 for all accounts held by the same shareholder). Section 403(b) accounts are charged an annual $25 fiduciary maintenance fee. Some of the fees may vary in amount, or may be waived,based on your total account balance or the number of PGIM funds, including the Fund, that you own. You should consider the additional fees that were charged to your Fund account over the six-month period whenyou estimate the total ongoing expenses paid over the period and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information
| | | | |
| PGIM Real Estate Income Fund | | | 7 | |
Fees and Expenses(continued)
provided in the expense table. Additional fees have the effect of reducing investment returns.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads).Therefore, the second line for each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, yourcosts would have been higher.
| | | | | | | | | | |
| | | | |
| PGIM Real Estate Income Fund | | Beginning
AccountValue
November 1, 2021 | | Ending
Account Value
April 30, 2022 | | Annualized
Expense
Ratio Based on the
Six-Month Period | | Expenses Paid
Duringthe
Six-Month Period* |
| | | | | |
| Class A | | Actual | | $1,000.00 | | $ 932.40 | | 1.35% | | $ 6.47 |
| | | | | |
| | | Hypothetical | | $1,000.00 | | $1,018.10 | | 1.35% | | $ 6.76 |
| | | | | |
| Class C | | Actual | | $1,000.00 | | $ 927.60 | | 2.10% | | $10.04 |
| | | | | |
| | | Hypothetical | | $1,000.00 | | $1,014.38 | | 2.10% | | $10.49 |
| | | | | |
| Class Z | | Actual | | $1,000.00 | | $ 932.50 | | 1.10% | | $ 5.27 |
| | | | | |
| | Hypothetical | | $1,000.00 | | $1,019.34 | | 1.10% | | $ 5.51 |
| | | | | |
| Class R6 | | Actual | | $1,000.00 | | $ 932.40 | | 1.10% | | $ 5.27 |
| | | | | |
| | | Hypothetical | | $1,000.00 | | $1,019.34 | | 1.10% | | $ 5.51 |
*Fund expenses (net of fee waivers or subsidies, if any) for each share class are equal to the annualized expense ratio for each shareclass (provided in the table), multiplied by the average account value over the period, multiplied by the 181 days in the six-month period ended April 30, 2022, and divided by the 365 days in theFund’s fiscal year ending October 31, 2022 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
| | |
| 8 | | Visit our website at pgim.com/investments |
Schedule of Investments (unaudited)
as ofApril 30, 2022
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| LONG-TERMINVESTMENTS 99.5% | | | | | | |
| | |
| COMMON STOCKS 78.9% | | | | | | |
| | |
| Diversified Real Estate Activities 3.8% | | | | | | |
| | |
| Sun Hung Kai Properties Ltd. (Hong Kong) | | | 102,608 | | | $ | 1,175,145 | |
| | |
| Diversified REITs 6.3% | | | | | | |
| | |
| Daiwa House REIT Investment Corp. (Japan) | | | 132 | | | | 320,428 | |
| Essential Properties Realty Trust, Inc. | | | 46,521 | | | | 1,116,504 | |
| Nomura Real Estate Master Fund, Inc. (Japan) | | | 432 | | | | 542,564 | |
| | | | | | | | |
| | |
| | | | | | | 1,979,496 | |
| | |
| Health Care REITs 16.1% | | | | | | |
| | |
| Community Healthcare Trust, Inc. | | | 32,038 | | | | 1,179,639 | |
| Global Medical REIT, Inc. | | | 98,586 | | | | 1,455,130 | |
| Healthcare Trust of America, Inc. (Class A Stock) | | | 29,292 | | | | 892,234 | |
| Omega Healthcare Investors, Inc. | | | 58,739 | | | | 1,496,670 | |
| | | | | | | | |
| | |
| | | | | | | 5,023,673 | |
| | |
| Industrial REITs 3.6% | | | | | | |
| | |
| Nexus Industrial REIT (Canada) | | | 111,078 | | | | 1,107,624 | |
| | |
| Office REITs 7.1% | | | | | | |
| | |
| Hudson Pacific Properties, Inc. | | | 28,500 | | | | 663,480 | |
| Nippon Building Fund, Inc. (Japan) | | | 68 | | | | 351,722 | |
| Postal Realty Trust, Inc. (Class A Stock) | | | 71,032 | | | | 1,195,469 | |
| | | | | | | | |
| | |
| | | | | | | 2,210,671 | |
| | |
| Real Estate Operating Companies 3.4% | | | | | | |
| | |
| Swire Properties Ltd. (Hong Kong) | | | 443,076 | | | | 1,063,784 | |
| | |
| Retail REITs 21.3% | | | | | | |
| | |
| Acadia Realty Trust | | | 19,280 | | | | 403,338 | |
| CapitaLand Integrated Commercial Trust (Singapore) | | | 760,416 | | | | 1,272,328 | |
| Federal Realty Investment Trust | | | 5,237 | | | | 613,043 | |
| Kite Realty Group Trust | | | 38,752 | | | | 864,169 | |
| Macerich Co. (The) | | | 54,782 | | | | 687,514 | |
| NETSTREIT Corp. | | | 28,253 | | | | 610,830 | |
| Scentre Group (Australia) | | | 262,433 | | | | 546,921 | |
| Simon Property Group, Inc. | | | 9,298 | | | | 1,097,164 | |
| Supermarket Income REIT PLC (United Kingdom) | | | 354,600 | | | | 557,205 | |
| | | | | | | | |
| | |
| | | | | | | 6,652,512 | |
See Notes to Financial Statements.
| | | | |
| PGIM Real Estate Income Fund | | | 9 | |
Schedule of Investments(unaudited) (continued)
as of April 30, 2022
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
| COMMON STOCKS (Continued) | | | | | | |
| | |
| Specialized REITs 17.3% | | | | | | |
| | |
| CubeSmart | | | 13,645 | | | $ | 648,274 | |
| Digital Core REIT Management Pte Ltd. (Singapore)* | | | 3 | | | | 3 | |
| EPR Properties | | | 36,695 | | | | 1,927,222 | |
| Gaming & Leisure Properties, Inc. | | | 33,330 | | | | 1,479,185 | |
| VICI Properties, Inc. | | | 45,029 | | | | 1,342,309 | |
| | | | | | | | |
| | |
| | | | | | | 5,396,993 | |
| | | | | | | | |
| | |
| TOTAL COMMON STOCKS
(cost $25,268,352) | | | | | | | 24,609,898 | |
| | | | | | | | |
| | |
| PREFERRED STOCKS 20.6% | | | | | | |
| | |
| Diversified REITs 5.8% | | | | | | |
| | |
| Armada Hoffler Properties, Inc., Series A, 6.750%, Maturing 06/18/24(oo) | | | 28,205 | | | | 721,484 | |
| Gladstone Commercial Corp., Series G, 6.000%, Maturing 06/28/26(oo) | | | 44,841 | | | | 1,076,184 | |
| | | | | | | | |
| | |
| | | | | | | 1,797,668 | |
| | |
| Hotel & Resort REITs 3.3% | | | | | | |
| | |
| Pebblebrook Hotel Trust, Series H, 5.700%, Maturing 07/27/26(oo) | | | 52,321 | | | | 1,019,213 | |
| | |
| Residential REITs 7.0% | | | | | | |
| | |
| American Homes 4 Rent, Series G, 5.875%, Maturing 07/17/22(oo) | | | 36,285 | | | | 916,196 | |
| Centerspace, Series C, 6.625%, Maturing 10/02/22(oo) | | | 25,594 | | | | 651,879 | |
| UMH Properties, Inc., Series C, 6.750%, Maturing 07/26/22(oo) | | | 24,932 | | | | 634,021 | |
| | | | | | | | |
| | |
| | | | | | | 2,202,096 | |
| | |
| Specialized REITs 4.5% | | | | | | |
| | |
| EPR Properties, Series G, 5.750%, Maturing 11/30/22(oo) | | | 59,871 | | | | 1,406,370 | |
| | | | | | | | |
| | |
| TOTAL PREFERRED STOCKS
(cost $6,662,760) | | | | | | | 6,425,347 | |
| | | | | | | | |
| | |
| TOTAL INVESTMENTS 99.5%
(cost $31,931,112) | | | | | | | 31,035,245 | |
| Other assets in excess of liabilities 0.5% | | | | | | | 156,225 | |
| | | | | | | | |
| | |
| NET ASSETS 100.0% | | | | | | $ | 31,191,470 | |
| | | | | | | | |
See Notes to Financial Statements.
Below isa list of the abbreviation(s) used in the semiannual report:
LIBOR—London Interbank Offered Rate
REITs—Real Estate Investment Trust
| * | Non-income producing security. |
| (oo) | Perpetual security. Maturity date represents next call date. |
Fair Value Measurements:
Various inputs are used in determining thevalue of the Fund’s investments. These inputs are summarized in the three broad levels listed below.
Level 1—unadjusted quoted pricesgenerally in active markets for identical securities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepaymentspeeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Boardapproved fair valuation procedures.
The following is a summary of the inputs used as of April 30, 2022 in valuing such portfolio securities:
| | | | | | | | | | | | | | | |
| | | Level 1 | | Level 2 | | Level 3 |
| Investments in Securities | | | | | | |
| Assets | | | | | | |
| Long-Term Investments | | | | | | |
| Common Stocks | | | | | | |
| Diversified Real Estate Activities | | | $ | — | | | | $ | 1,175,145 | | | | $ | — | |
| Diversified REITs | | | | 1,116,504 | | | | | 862,992 | | | | | — | |
| Health Care REITs | | | | 5,023,673 | | | | | — | | | | | — | |
| Industrial REITs | | | | 1,107,624 | | | | | — | | | | | — | |
| Office REITs | | | | 1,858,949 | | | | | 351,722 | | | | | — | |
| Real Estate Operating Companies | | | | — | | | | | 1,063,784 | | | | | — | |
| Retail REITs | | | | 4,276,058 | | | | | 2,376,454 | | | | | — | |
| Specialized REITs | | | | 5,396,990 | | | | | 3 | | | | | — | |
| Preferred Stocks | | | | | | | | | | | | | | | |
| Diversified REITs | | | | 1,797,668 | | | | | — | | | | | — | |
| Hotel & Resort REITs | | | | 1,019,213 | | | | | — | | | | | — | |
| Residential REITs | | | | 2,202,096 | | | | | — | | | | | — | |
| Specialized REITs | | | | 1,406,370 | | | | | — | | | | | — | |
| | | | | | | | | | | | | | | |
| Total | | | $ | 25,205,145 | | | | $ | 5,830,100 | | | | $ | — | |
| | | | | | | | | | | | | | | |
Sector Classification:
The sector classification of investments and other assets in excess of liabilities shown as a percentage of net assets as of April 30, 2022 were as follows:
| | | | |
| Specialized REITs | | | 21.8 | % |
| Retail REITs | | | 21.3 | |
| Health Care REITs | | | 16.1 | |
| | | | |
| Diversified REITs | | | 12.1 | % |
| Office REITs | | | 7.1 | |
| Residential REITs | | | 7.0 | |
See Notes to Financial Statements.
| | | | |
| PGIM Real Estate Income Fund | | | 11 | |
Schedule of Investments(unaudited) (continued)
as of April 30, 2022
Sector Classification (continued):
| | | | |
| Diversified Real Estate Activities | | | 3.8 | % |
| Industrial REITs | | | 3.6 | |
| Real Estate Operating Companies | | | 3.4 | |
| Hotel & Resort REITs | | | 3.3 | |
| | | | |
| | | 99.5 | |
| Other assets in excess of liabilities | | | 0.5 | |
| | | | |
| | | 100.0 | % |
| | | | |
See Notes to Financial Statements.
Statement of Assets and Liabilities (unaudited)
as ofApril 30, 2022
| | | | | |
| Assets | | | | | |
| |
| Unaffiliated investments (cost $31,931,112) | | | $ | 31,035,245 | |
| Foreign currency, at value (cost $14) | | | | 14 | |
| Receivable for investments sold | | | | 323,259 | |
| Dividends receivable | | | | 112,051 | |
| Tax reclaim receivable | | | | 7,838 | |
| Receivable for Fund shares sold | | | | 539 | |
| Prepaid expenses | | | | 565 | |
| | | | | |
| Total Assets | | | | 31,479,511 | |
| | | | | |
| |
| Liabilities | | | | | |
| |
| Payable for Fund shares purchased | | | | 200,502 | |
| Payable to custodian | | | | 31,508 | |
| Accrued expenses and other liabilities | | | | 22,387 | |
| Management fee payable | | | | 15,996 | |
| Audit fee payable | | | | 15,819 | |
| Trustees’ fees payable | | | | 865 | |
| Affiliated transfer agent fee payable | | | | 485 | |
| Distribution fee payable | | | | 479 | |
| | | | | |
| Total Liabilities | | | | 288,041 | |
| | | | | |
| |
| Net Assets | | | $ | 31,191,470 | |
| | | | | |
| | | | | | |
| |
| Net assets were comprised of: | | | | | |
| Shares of beneficial interest, at par | | | $ | 4,193 | |
| Paid-in capital in excess of par | | | | 31,933,889 | |
| Total distributable earnings (loss) | | | | (746,612 | ) |
| | | | | |
| Net assets, April 30, 2022 | | | $ | 31,191,470 | |
| | | | | |
See Notes to Financial Statements.
| | | | |
| PGIM Real Estate Income Fund | | | 13 | |
Statement of Assets and Liabilities (unaudited)
as ofApril 30, 2022
| | | | | |
| |
| Class A | | | | | |
| |
| Net asset value and redemption price per share, | | | | | |
| ($1,211,567 ÷ 163,164 shares of beneficial interest issued and outstanding) | | | | $7.43 | |
| Maximum sales charge (5.50% of offering price) | | | | 0.43 | |
| | | | | |
| |
| Maximum offering price to public | | | | $7.86 | |
| | | | | |
| |
| Class C | | | | | |
| |
| Net asset value, offering price and redemption price per share, | | | | | |
| ($246,745 ÷ 33,240 shares of beneficial interest issued and outstanding) | | | | $7.42 | |
| | | | | |
| |
| Class Z | | | | | |
| |
| Net asset value, offering price and redemption price per share, | | | | | |
| ($7,584,781 ÷ 1,017,394 shares of beneficial interest issued and outstanding) | | | | $7.46 | |
| | | | | |
| |
| Class R6 | | | | | |
| |
| Net asset value, offering price and redemption price per share, | | | | | |
| ($22,148,377 ÷ 2,978,969 shares of beneficial interest issued and outstanding) | | | | $7.43 | |
| | | | | |
See Notes to Financial Statements.
Statement of Operations(unaudited)
Six Months Ended April 30, 2022
| | | | | |
| Net Investment Income (Loss) | |
| Income | | | | | |
| Unaffiliated dividend income (net of $14,571 foreign withholding tax) | | | $ | 881,078 | |
| Income from securities lending, net (including affiliated income of $395) | | | | 3,323 | |
| Affiliated dividend income | | | | 37 | |
| | | | | |
| Total income | | | | 884,438 | |
| | | | | |
| |
| Expenses | | | | | |
| Management fee | | | | 147,752 | |
| Distribution fee(a) | | | | 3,434 | |
| Custodian and accounting fees | | | | 23,804 | |
| Audit fee | | | | 15,819 | |
| Registration fees(a) | | | | 13,516 | |
| Legal fees and expenses | | | | 9,742 | |
| Transfer agent’s fees and expenses (including affiliated expense of $1,102)(a) | | | | 6,815 | |
| Shareholders’ reports | | | | 5,781 | |
| Trustees’ fees | | | | 4,861 | |
| Miscellaneous | | | | 14,748 | |
| | | | | |
| Total expenses | | | | 246,272 | |
| Less: Fee waiver and/or expense reimbursement(a) | | | | (39,047 | ) |
| Distribution fee waiver(a) | | | | (349 | ) |
| | | | | |
| Net expenses | | | | 206,876 | |
| | | | | |
| Net investment income (loss) | | | | 677,562 | |
| | | | | |
|
| Realized And Unrealized Gain (Loss) On Investment And Foreign Currency Transactions |
| Net realized gain (loss) on: | | | | | |
| Investment transactions (including affiliated of $(731)) | | | | 566,810 | |
| Foreign currency transactions | | | | (6,676 | ) |
| | | | | |
| | | | 560,134 | |
| | | | | |
| Net change in unrealized appreciation (depreciation) on: | | | | | |
| Investments | | | | (3,811,995 | ) |
| Foreign currencies | | | | (2,725 | ) |
| | | | | |
| | | | (3,814,720 | ) |
| | | | | |
| Net gain (loss) on investment and foreign currency transactions | | | | (3,254,586 | ) |
| | | | | |
| Net Increase (Decrease) In Net Assets Resulting From Operations | | | $ | (2,577,024 | ) |
| | | | | |
| (a) | Class specific expenses and waivers were as follows: |
| | | | | | | | | | | | | | | | |
| | | Class A | | Class C | | Class Z | | Class R6 |
| Distribution fee | | | 2,095 | | | | 1,339 | | | | — | | | | — | |
| Registration fees | | | 3,763 | | | | 2,915 | | | | 4,343 | | | | 2,495 | |
| Transfer agent’s fees and expenses | | | 1,388 | | | | 278 | | | | 5,074 | | | | 75 | |
| Fee waiver and/or expense reimbursement | | | (5,860 | ) | | | (3,329 | ) | | | (13,604 | ) | | | (16,254 | ) |
| Distribution fee waiver | | | (349 | ) | | | — | | | | — | | | | — | |
See Notes to Financial Statements.
| | | | |
| PGIM Real Estate Income Fund | | | 15 | |
Statements of Changes in Net Assets (unaudited)
| | | | | | | | |
| | | |
| | | Six Months Ended
April 30, 2022 | | | Year Ended
October 31, 2021 | |
| Increase (Decrease) in Net Assets | | | | | | | | |
| Operations | | | | | | | | |
| Net investment income (loss) | | $ | 677,562 | | | $ | 1,319,578 | |
| Net realized gain (loss) on investment and foreign currency transactions | | | 560,134 | | | | 9,184,310 | |
| Net change in unrealized appreciation (depreciation) on investments and foreign currencies | | | (3,814,720 | ) | | | 4,312,329 | |
| | | | | | | | |
| Net increase (decrease) in net assets resulting from operations | | | (2,577,024 | ) | | | 14,816,217 | |
| | | | | | | | |
| | |
| Dividends and Distributions | | | | | | | | |
| Distributions from distributable earnings | | | | | | | | |
| Class A | | | (338,317 | ) | | | (54,882 | ) |
| Class C | | | (61,984 | ) | | | (9,354 | ) |
| Class Z | | | (1,789,380 | ) | | | (433,149 | ) |
| Class R6 | | | (6,228,077 | ) | | | (1,310,830 | ) |
| | | | | | | | |
| | | (8,417,758 | ) | | | (1,808,215 | ) |
| | | | | | | | |
| | |
| Fund share transactions (Net of share conversions) | | | | | | | | |
| Net proceeds from shares sold | | | 1,634,615 | | | | 21,122,631 | |
| Net asset value of shares issued in reinvestment of dividends and distributions | | | 8,402,716 | | | | 1,805,219 | |
| Cost of shares purchased | | | (10,293,798 | ) | | | (25,640,300 | ) |
| | | | | | | | |
| Net increase (decrease) in net assets from Fund share transactions | | | (256,467 | ) | | | (2,712,450 | ) |
| | | | | | | | |
| Total increase (decrease) | | | (11,251,249 | ) | | | 10,295,552 | |
| | |
| Net Assets: | | | | | | | | |
| Beginning of period | | | 42,442,719 | | | | 32,147,167 | |
| | | | | | | | |
| End of period | | $ | 31,191,470 | | | $ | 42,442,719 | |
| | | | | | | | |
See Notes to Financial Statements.
Financial Highlights(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A Shares | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months
Ended
April 30, 2022 | | | | | | YearEnded October 31, | |
| | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | | $10.26 | | | | | | | | $7.67 | | | | $10.66 | | | | $8.76 | | | | $9.62 | | | | $9.66 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | | 0.19 | | | | | | | | 0.25 | | | | 0.27 | | | | 0.28 | | | | 0.34 | | | | 0.39 | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | (0.79 | ) | | | | | | | 2.70 | | | | (2.43 | ) | | | 1.97 | | | | (0.63 | ) | | | 0.05 | |
| Total from investment operations | | | (0.60 | ) | | | | | | | 2.95 | | | | (2.16 | ) | | | 2.25 | | | | (0.29 | ) | | | 0.44 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends from net investment income | | | (0.20 | ) | | | | | | | (0.36 | ) | | | (0.63 | ) | | | (0.35 | ) | | | (0.50 | ) | | | (0.48 | ) |
| Tax return of capital distributions | | | - | | | | | | | | - | | | | (0.14 | ) | | | - | | | | (0.07 | ) | | | - | |
| Distributions from net realized gains | | | (2.03 | ) | | | | | | | - | | | | (0.06 | ) | | | - | | | | - | | | | - | |
| Total dividends and distributions | | | (2.23 | ) | | | | | | | (0.36 | ) | | | (0.83 | ) | | | (0.35 | ) | | | (0.57 | ) | | | (0.48 | ) |
| Net asset value, end of period | | | $7.43 | | | | | | | | $10.26 | | | | $7.67 | | | | $10.66 | | | | $8.76 | | | | $9.62 | |
| Total Return(b): | | | (6.76 | )% | | | | | | | 38.84 | % | | | (21.25 | )% | | | 26.26 | % | | | (3.15 | )% | | | 4.60 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000) | | | $1,212 | | | | | | | | $1,582 | | | | $866 | | | | $915 | | | | $621 | | | | $914 | |
| Average net assets (000) | | | $1,408 | | | | | | | | $1,428 | | | | $796 | | | | $677 | | | | $878 | | | | $744 | |
| Ratios to average net assets(c)(d): | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses after waivers and/or expense reimbursement | | | 1.35 | %(e) | | | | | | | 1.35 | % | | | 1.36 | % | | | 1.35 | % | | | 1.36 | % | | | 1.35 | % |
| Expenses before waivers and/or expense reimbursement | | | 2.24 | %(e) | | | | | | | 2.16 | % | | | 4.78 | % | | | 4.65 | % | | | 4.85 | % | | | 3.30 | % |
| Net investment income (loss) | | | 4.59 | %(e) | | | | | | | 2.56 | % | | | 3.18 | % | | | 2.91 | % | | | 3.73 | % | | | 4.00 | % |
| Portfolio turnover rate(f) | | | 40 | % | | | | | | | 201 | % | | | 235 | % | | | 257 | % | | | 153 | % | | | 137 | % |
| (a) | Calculated based on average shares outstanding during the period. |
| (b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share onthe first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are notannualized. |
| (c) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees,which are charged to their respective share class. |
| (d) | Does not include expenses of the underlying portfolios in which the Fund invests. |
| (f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard totransactions 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 Real Estate Income Fund | | | 17 | |
Financial Highlights(unaudited)(continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class C Shares | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months
Ended
April 30, 2022 | | | | | | YearEnded October 31, | |
| | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | | $10.26 | | | | | | | | $7.67 | | | | $10.66 | | | | $8.76 | | | | $9.62 | | | | $9.66 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | | 0.11 | | | | | | | | 0.18 | | | | 0.23 | | | | 0.21 | | | | 0.27 | | | | 0.32 | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | (0.76 | ) | | | | | | | 2.70 | | | | (2.45 | ) | | | 1.97 | | | | (0.63 | ) | | | 0.05 | |
| Total from investment operations | | | (0.65 | ) | | | | | | | 2.88 | | | | (2.22 | ) | | | 2.18 | | | | (0.36 | ) | | | 0.37 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends from net investment income | | | (0.16 | ) | | | | | | | (0.29 | ) | | | (0.57 | ) | | | (0.28 | ) | | | (0.44 | ) | | | (0.41 | ) |
| Tax return of capital distributions | | | - | | | | | | | | - | | | | (0.14 | ) | | | - | | | | (0.06 | ) | | | - | |
| Distributions from net realized gains | | | (2.03 | ) | | | | | | | - | | | | (0.06 | ) | | | - | | | | - | | | | - | |
| Total dividends and distributions | | | (2.19 | ) | | | | | | | (0.29 | ) | | | (0.77 | ) | | | (0.28 | ) | | | (0.50 | ) | | | (0.41 | ) |
| Net asset value, end of period | | | $7.42 | | | | | | | | $10.26 | | | | $7.67 | | | | $10.66 | | | | $8.76 | | | | $9.62 | |
| Total Return(b): | | | (7.24 | )% | | | | | | | 37.84 | % | | | (21.86 | )% | | | 25.34 | % | | | (3.85 | )% | | | 3.83 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000) | | | $247 | | | | | | | | $277 | | | | $268 | | | | $639 | | | | $336 | | | | $293 | |
| Average net assets (000) | | | $270 | | | | | | | | $302 | | | | $500 | | | | $510 | | | | $314 | | | | $309 | |
| Ratios to average net assets(c)(d): | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses after waivers and/or expense reimbursement | | | 2.10 | %(e) | | | | | | | 2.10 | % | | | 2.11 | % | | | 2.10 | % | | | 2.11 | % | | | 2.10 | % |
| Expenses before waivers and/or expense reimbursement | | | 4.59 | %(e) | | | | | | | 4.27 | % | | | 6.45 | % | | | 5.86 | % | | | 8.85 | % | | | 4.00 | % |
| Net investment income (loss) | | | 2.55 | %(e) | | | | | | | 1.92 | % | | | 2.62 | % | | | 2.21 | % | | | 2.98 | % | | | 3.29 | % |
| Portfolio turnover rate(f) | | | 40 | % | | | | | | | 201 | % | | | 235 | % | | | 257 | % | | | 153 | % | | | 137 | % |
| (a) | Calculated based on average shares outstanding during the period. |
| (b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share onthe first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are notannualized. |
| (c) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees,which are charged to their respective share class. |
| (d) | Does not include expenses of the underlying portfolios in which the Fund invests. |
| (f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard totransactions 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.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class Z Shares | |
| | | Six Months
Ended
April 30, 2022 | | | | | | YearEnded October 31, | |
| | | | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | | $10.29 | | | | | | | | $7.69 | | | | $10.69 | | | | $8.78 | | | | $9.62 | | | | $9.66 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | | 0.15 | | | | | | | | 0.28 | | | | 0.34 | | | | 0.31 | | | | 0.39 | | | | 0.40 | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | (0.74 | ) | | | | | | | 2.71 | | | | (2.49 | ) | | | 1.98 | | | | (0.64 | ) | | | 0.06 | |
| Total from investment operations | | | (0.59 | ) | | | | | | | 2.99 | | | | (2.15 | ) | | | 2.29 | | | | (0.25 | ) | | | 0.46 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends from net investment income | | | (0.21 | ) | | | | | | | (0.39 | ) | | | (0.65 | ) | | | (0.38 | ) | | | (0.52 | ) | | | (0.50 | ) |
| Tax return of capital distributions | | | - | | | | | | | | - | | | | (0.14 | ) | | | - | | | | (0.07 | ) | | | - | |
| Distributions from net realized gains | | | (2.03 | ) | | | | | | | - | | | | (0.06 | ) | | | - | | | | - | | | | - | |
| Total dividends and distributions | | | (2.24 | ) | | | | | | | (0.39 | ) | | | (0.85 | ) | | | (0.38 | ) | | | (0.59 | ) | | | (0.50 | ) |
| Net asset value, end of period | | | $7.46 | | | | | | | | $10.29 | | | | $7.69 | | | | $10.69 | | | | $8.78 | | | | $9.62 | |
| Total Return(b): | | | (6.75 | )% | | | | | | | 39.19 | % | | | (21.08 | )% | | | 26.62 | % | | | (2.70 | )% | | | 4.85 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ratios/Supplemental Data: | |
| Net assets, end of period (000) | | | $7,585 | | | | | | | | $10,941 | | | | $7,797 | | | | $16,451 | | | | $6,951 | | | | $10,681 | |
| Average net assets (000) | | | $8,414 | | | | | | | | $11,287 | | | | $9,743 | | | | $12,060 | | | | $8,632 | | | | $8,961 | |
| Ratios to average net assets(c)(d): | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses after waivers and/or expense reimbursement | | | 1.10 | %(e) | | | | | | | 1.10 | % | | | 1.11 | % | | | 1.10 | % | | | 0.98 | % | | | 1.10 | % |
| Expenses before waivers and/or expense reimbursement | | | 1.43 | %(e) | | | | | | | 1.38 | % | | | 2.54 | % | | | 2.31 | % | | | 2.81 | % | | | 2.96 | % |
| Net investment income (loss) | | | 3.70 | %(e) | | | | | | | 2.92 | % | | | 3.81 | % | | | 3.17 | % | | | 4.25 | % | | | 4.17 | % |
| Portfolio turnover rate(f) | | | 40 | % | | | | | | | 201 | % | | | 235 | % | | | 257 | % | | | 153 | % | | | 137 | % |
| (a) | Calculated based on average shares outstanding during the period. |
| (b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each periodreported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
| (c) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees,which are charged to their respective share class. |
| (d) | Does not include expenses of the underlying portfolios in which the Fund invests. |
| (f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard totransactions 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 Real Estate Income Fund | | | 19 | |
Financial Highlights(unaudited) (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class R6 Shares | | |
| | | Six Months
Ended
April 30, | | | | Year Ended October 31, | | | | December 28, 2016(a)
through
October 31, | | |
| | | 2022 | | | | 2021 | | 2020 | | 2019 | | 2018 | | | | 2017 | | |
| Per Share Operating Performance(b): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | | | $10.27 | | | | | | | | | | $7.68 | | | | | $10.67 | | | | | $8.76 | | | | | $9.62 | | | | | | | | | | $9.33 | | | | | | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | | | 0.15 | | | | | | | | | | 0.27 | | | | | 0.12 | | | | | 0.31 | | | | | 0.25 | | | | | | | | | | 0.31 | | | | | | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | | (0.75 | ) | | | | | | | | | 2.71 | | | | | (2.26 | ) | | | | 1.98 | | | | | (0.52 | ) | | | | | | | | | 0.38 | | | | | | |
| Total from investment operations | | | | (0.60 | ) | | | | | | | | | 2.98 | | | | | (2.14 | ) | | | | 2.29 | | | | | (0.27 | ) | | | | | | | | | 0.69 | | | | | | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends from net investment income | | | | (0.21 | ) | | | | | | | | | (0.39 | ) | | | | (0.65 | ) | | | | (0.38 | ) | | | | (0.50 | ) | | | | | | | | | (0.40 | ) | | | | | |
| Tax return of capital distributions | | | | - | | | | | | | | | | - | | | | | (0.14 | ) | | | | - | | | | | (0.09 | ) | | | | | | | | | - | | | | | | |
| Distributions from net realized gains | | | | (2.03 | ) | | | | | | | | | - | | | | | (0.06 | ) | | | | - | | | | | - | | | | | | | | | | - | | | | | | |
| Total dividends and distributions | | | | (2.24 | ) | | | | | | | | | (0.39 | ) | | | | (0.85 | ) | | | | (0.38 | ) | | | | (0.59 | ) | | | | | | | | | (0.40 | ) | | | | | |
| Net asset value, end of period | | | | $7.43 | | | | | | | | | | $10.27 | | | | | $7.68 | | | | | $10.67 | | | | | $8.76 | | | | | | | | | | $9.62 | | | | | | |
| Total Return(c): | | | | (6.76 | )% | | | | | | | | | 39.11 | % | | | | (21.03 | )% | | | | 26.54 | % | | | | (2.92 | )% | | | | | | | | | 7.43 | % | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ratios/Supplemental Data: | | |
| Net assets, end of period (000) | | | | $22,148 | | | | | | | | | | $29,642 | | | | | $23,216 | | | | | $158 | | | | | $70 | | | | | | | | | | $11 | | | | | | |
| Average net assets (000) | | | | $27,152 | | | | | | | | | | $33,597 | | | | | $675 | | | | | $115 | | | | | $17 | | | | | | | | | | $11 | | | | | | |
| Ratios to average net assets(d)(e): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses after waivers and/or expense reimbursement | | | | 1.10 | %(f) | | | | | | | | | 1.10 | % | | | | 1.10 | % | | | | 1.10 | % | | | | 1.10 | % | | | | | | | | | 1.10 | %(f) | | | | | |
| Expenses before waivers and/or expense reimbursement | | | | 1.22 | %(f) | | | | | | | | | 1.15 | % | | | | 3.80 | % | | | | 8.55 | % | | | | 91.97 | % | | | | | | | | | 2.79 | %(f) | | | | | |
| Net investment income (loss) | | | | 3.62 | %(f) | | | | | | | | | 2.82 | % | | | | 1.36 | % | | | | 3.15 | % | | | | 2.70 | % | | | | | | | | | 3.78 | %(f) | | | | | |
| Portfolio turnover rate(g) | | | | 40 | % | | | | | | | | | 201 | % | | | | 235 | % | | | | 257 | % | | | | 153 | % | | | | | | | | | 137 | % | | | | | |
| (a) | Commencement of offering. |
| (b) | Calculated based on average shares outstanding during the period. |
| (c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each periodreported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
| (d) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees,which are charged to their respective share class. |
| (e) | Does not include expenses of the underlying portfolios in which the Fund invests. |
| (g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard totransactions 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.
Notes to Financial Statements (unaudited)
1. Organization
Prudential Investment Portfolios 9 (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 isorganized as a Delaware Statutory Trust. These financial statements relate only to the PGIM Real Estate Income Fund (the “Fund”), a series of the RIC. The Fund is classified as a non-diversified fundfor purposes of the 1940 Act.
The investment objective of the Fund is to seek income and capital appreciation.
2. Accounting Policies
The Fund follows the investmentcompany 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 summaryof 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 thepreparation of its financial statements.
Securities Valuation: The Fund holds securities and other assets and liabilities that are fair valued as of theclose 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 thetype of investment and whether market quotations are readily available. The RIC’s Board of Trustees (the “Board”) has adopted valuation procedures for security valuation under which fair valuation responsibilities have been delegatedto PGIM Investments LLC (“PGIM Investments” or the “Manager”). Pursuant to the Board’s delegation, the Manager has established a Valuation Committee responsible for supervising the fair valuation of portfolio securities andother assets and liabilities. 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 notdeemed representative of fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. A record of the ValuationCommittee’s actions is subject to the Board’s review at its first quarterly meeting following the quarter in which such actions take place.
For the fiscalreporting period-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 (includingweekends and holidays). Because such foreign securities trade in markets that are open on weekends and U.S. holidays, the values of some
| | | | |
| PGIM Real Estate Income Fund | | | 21 | |
Notes to Financial Statements (unaudited) (continued)
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 theSchedule of Investments and referred to herein as the “fair value hierarchy” in accordance with FASB ASC Topic 820 - Fair Value Measurement.
Common orpreferred stocks, exchange-traded funds 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 securityprincipally 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 fairvalue hierarchy. In the event that no sale or official closing price on valuation date exists, these securities are generally valued at the mean between the last reported bid and ask prices, or at the last bid price in the absence of an ask price.These securities are classified as Level 2 in the fair value hierarchy.
Foreign equities traded on foreign securities exchanges are generally valued usingpricing 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 closingmarket 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 withexchange-traded common and preferred stock valuation policies discussed above.
Investments in open-end funds (other thanexchange-traded funds) are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net assetvalues on the date of valuation.
Securities and other assets that cannot be priced according to the methods described above are valued based on pricingmethodologies 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 resultin 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 anyrestrictions 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 thecapitalization of the issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; any available analyst media or other reports or information deemed reliable by the Manager regarding the issuer orthe 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 theirnet asset values.
Foreign Currency Translation: The books and records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translatedinto U.S. dollars on the following basis:
(i) market value of investment securities, other assets and liabilities — at the exchange rate as of the valuationdate;
(ii) purchases and sales of investment securities, income and expenses — at the rates of exchange prevailing on the respective dates of suchtransactions.
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 notgenerally 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 andrealized 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.
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. dollarequivalent 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.
Master Netting Arrangements: The RIC, on behalf of the Fund, is subject to various Master Agreements, or netting arrangements, with select counterparties. Theseare 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 samecounterparty against amounts to be received; and by the receipt of collateral from the counterparty by the Fund to cover the
| | | | |
| PGIM Real Estate Income Fund | | | 23 | |
Notes to Financial Statements (unaudited) (continued)
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 toset-off the amount owed with the amount owed by the other party, the reporting party intends to set-off and the right of set-offis enforceable by law.
Securities Lending: The Fund lends its portfolio securities to banks and broker-dealers. The loans are secured by collateral at leastequal 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 thecollateral exceeds the value of the loaned securities. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the financial statements may reflect a collateral value that is lessthan 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 securitiesidentical to the loaned securities. The remaining maturities 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 securitiesin 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 offees 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 ininterest 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 thevalue 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 lendingare disclosed in the Statement of Operations.
Equity and Mortgage Real Estate Investment Trusts (collectively REITs): The Fund invested in REITs, whichreport 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 andrecorded 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. Realizedgains (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 Fundbecomes 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. 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 specificexpenses 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 andexpenses, registration fees and fee waivers and/or expense reimbursements, as applicable.
Taxes: It is the Fund’s policy to continue to meet therequirements 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.
Taxreform legislation commonly referred to as the Tax Cuts and Jobs Act permits a direct REIT shareholder to claim a 20% “qualified business income” deduction for ordinary REIT dividends. The tax legislation did not expressly permit regulatedinvestment companies (“RICs”) paying dividends attributable to such income to pass through this special treatment to its shareholders. On January 18, 2019, the Internal Revenue Service issued final regulations that permit RICs to passthrough “qualified REIT dividends” to their shareholders.
Dividends and Distributions: Dividends and distributions to shareholders, which aredetermined 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 reclassifiedbetween 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 gainsduring a fiscal year. |
| | | | |
| PGIM Real Estate Income Fund | | | 25 | |
Notes to Financial Statements (unaudited) (continued)
Estimates: The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in thefinancial statements. Actual results could differ from those estimates.
3. Agreements
The RIC, on behalf of the Fund, has a management agreement with the Manager. Pursuant to this agreement, the Manager has responsibility for all investment advisoryservices and supervises the subadviser’s performance of such services.
The Manager has entered into a subadvisory agreement with PGIM, Inc., which providessubadvisory services to the Fund through its business unit, PGIM Real Estate, and PGIM Real Estate (UK) Limited, an indirect wholly-owned subsidiary of PGIM, Inc. (collectively referred to herein as the “subadviser”). The Manager pays forthe services of the subadviser.
Fees payable under the management agreement are computed daily and paid monthly. For the reporting period ended April 30, 2022,the contractual and effective management fee rates were as follows:
| | | | | | | | |
| Contractual Management Rate | | | | | Effective Management Fee, before any waivers
and/or expense reimbursements | |
| 0.80% on average daily net assets up to and including$1 billion; | | | | | | | 0.80% | |
| 0.78% on the next $2 billion of average daily netassets; | | | | | | | | |
| 0.76% on the next $2 billion of average daily netassets; | | | | | | | | |
| 0.75% on the next $5 billion of average daily netassets; | | | | | | | | |
| 0.74% on average daily net assets exceeding$10 billion. | | | | | | | | |
The Manager has contractually agreed, through February 28, 2023, to limit total annual operating expenses after fee waivers and/orexpense 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 Fundexpenses such as dividend and interest expense and broker charges on short sales.
Where applicable, the Manager agrees to waive management fees or shared operatingexpenses 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. Feesand/or expenses waived and/or reimbursed by the Manager 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 recoupment for that fiscal year. The expenselimitations attributable to each class are as follows:
| | | | | |
| Class | | Expense
Limitations |
| A | | | | 1.35 | % |
| C | | | | 2.10 | |
| Z | | | | 1.10 | |
| R6 | | | | 1.10 | |
The RIC, on behalf of the Fund, has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), whichacts as the distributor of the Class A, Class C, Class Z and Class R6 shares of the Fund. The Fund compensates PIMS for distributing and servicing the Fund’s Class A and Class C shares, pursuant to the plans ofdistribution (the “Distribution Plans”), regardless of expenses actually incurred by PIMS.
Pursuant to the Distribution Plans, the Fund compensates PIMSfor distribution related activities at an annual rate based on average daily net assets per class. PIMS has contractually agreed through February 28, 2023 to limit such fees on certain classes based on the average daily net assets.Thedistribution fees are accrued daily and payable monthly.
The Fund’s annual gross and net distribution rate, where applicable, are as follows:
| | | | | | | | | | | | | | | |
| | | | |
| Class | | | | Gross Distribution Fee | | Net Distribution Fee |
| A | | | | 0.30% | | 0.25% |
| C | | | | 1.00 | | 1.00 |
| Z | | | | N/A | | N/A |
| R6 | | | | N/A | | N/A |
For the reporting period ended April 30, 2022, PIMS received front-end sales charges(“FESL”) resulting from sales of certain class shares. Additionally, for the reporting period ended April 30, 2022, PIMS did not receive any contingent deferred sales charges (“CDSC”) imposed upon redemptions by certainshareholders.
| | | | | | | | | | | | | | |
| | | | | |
| Class | | | | | | | | FESL | | | CDSC |
| A | | | | | | | | | | | $4,125 | | | $— |
| C | | | | | | | | | | | — | | | — |
PGIM Investments, PGIM, Inc., PGIM Real Estate (UK) Limited and PIMS 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’stransfer agent. Transfer agent’s fees and expenses in the Statement of Operations include certain out-of-pocket expenses paid tonon-affiliates, where applicable.
| | | | |
| PGIM Real Estate Income Fund | | | 27 | |
Notes to Financial Statements (unaudited) (continued)
The Fund may invest its overnight sweep cash in the PGIM Core Ultra Short Bond Fund (the “Core Fund”), and its securities lending cash collateral in the PGIMInstitutional Money Market Fund (the “Money Market Fund”), each a fund of Prudential Investment Portfolios 2, registered under the 1940 Act and managed by PGIM Investments. PGIM Investments and/or its affiliates are paid fees or reimbursedfor providing their services to the Core Fund and the Money Market Fund. In addition to the realized and unrealized gains on investments in the Core Fund and Money Market Fund, earnings from such investments are disclosed on the Statement ofOperations as “Affiliated dividend income” and “Income from securities lending, net”, respectively. Effective January 2022, the Fund changed its overnight cash sweep vehicle from the Core Fund to an unaffiliated money marketfund.
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 investment companies, or between an investment company and aperson that is affiliated solely by reason of having a common (or affiliated) investment adviser, common directors/trustees, and/or common officers. For the reporting period ended April 30, 2022, no 17a-7transactions were entered into by the Fund.
5. Portfolio Securities
The aggregate cost of purchases and proceeds from sales of portfolio securities (excluding short-term investments and U.S. Government securities) for the reporting periodended April 30, 2022, were as follows:
| | |
| Cost of Purchases | | Proceeds from Sales |
| $15,018,739 | | $22,783,733 |
A summary of the cost of purchases and proceeds from sales of shares of affiliated mutual funds for the reporting period endedApril 30, 2022, is presented as follows:
| | | | | | | | | | | | | | | | | | | | | | |
| Value,
Beginning of
Period | | Cost of
Purchases | | | Proceeds from Sales | | | Change in
Unrealized
Gain
(Loss) | | Realized
Gain
(Loss) | | Value,
End of
Period | | Shares,
End
of
Period | | | Income | |
|
| Short-Term Investments - Affiliated MutualFunds: | |
|
| PGIM Core Ultra Short Bond Fund(1)(wa) | |
| $108,325 | | $ | 2,070,422 | | | $ | 2,178,747 | | | $— | | $— | | $— | | | — | | | $ | 37 | |
| | | | | | | | | | | | | | | | |
| Value,
Beginning of
Period | | Cost of
Purchases | | Proceeds from Sales | | Change in
Unrealized
Gain
(Loss) | | Realized
Gain
(Loss) | | Value,
End of
Period | | Shares,
End
of
Period | | | Income |
|
| PGIM Institutional Money Market Fund(1)(b)(wa) |
| $— | | $4,350,626 | | $4,349,895 | | $— | | $(731) | | $— | | | — | | | $395(2) |
| $108,325 | | $6,421,048 | | $6,528,642 | | $— | | $(731) | | $— | | | | | | $432 |
| (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 ofOperations. |
| (b) | Represents security, or portion thereof, purchased with cash collateral received for securities on loan and includesdividend reinvestment. |
| (wa) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Ultra Short Bond Fund and PGIMInstitutional Money Market Fund, if applicable. |
6. Tax Information
The United States federal income tax basis of the Fund’s investments and the net unrealized depreciation as of April 30, 2022 were as follows:
| | | | | | |
| Tax Basis | | Gross
Unrealized
Appreciation | | Gross
Unrealized
Depreciation | | Net
Unrealized
Depreciation |
| $32,132,160 | | $1,403,094 | | $(2,500,009) | | $(1,096,915) |
The GAAP basis may differ from tax basis due to certain tax-related adjustments.
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 provisionfor income tax is 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 yearsup to the most recent fiscal year ended October 31, 2021 are subject to such review.
7. Capital and Ownership
The Fund offers Class A, Class C, Class Z and Class R6 shares . Class A shares are sold with a maximumfront-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 contingent deferred sales charge(“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 topurchase 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 eightyears (ten years prior to January 22, 2021) after purchase. 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.
| | | | |
| PGIM Real Estate Income Fund | | | 29 | |
Notes to Financial Statements (unaudited) (continued)
Under certain circumstances, an exchange may be made from specified share classes of the Fund to one or more other share classes of the Fund as presented in the table oftransactions in shares of beneficial interest, below.
The RIC has authorized an unlimited number of shares of beneficial interest of the Fund at $0.001 par valueper share, currently divided into four classes, designated Class A, Class C, Class Z and Class R6.
As of April 30, 2022, 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 | | 928,411 | | 91.3% |
| R6 | | 2,620,773 | | 88.0 |
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 | | 2 | | 84.6% |
| Unaffiliated | | 1 | | 11.5 |
Transactions in shares of beneficial interest were as follows:
| | | | | | | | |
| | | |
| Share Class | | Shares | | | Amount | |
| | |
| Class A | | | | | | |
| Six months ended April 30, 2022: | | | | | | |
| Shares sold | | | 21,321 | | | $ | 189,244 | |
| Shares issued in reinvestment of dividends anddistributions | | | 42,540 | | | | 334,080 | |
| Shares purchased | | | (55,115 | ) | | | (458,049 | ) |
| Net increase (decrease) in shares outstanding beforeconversion | | | 8,746 | | | | 65,275 | |
| Shares issued upon conversion from other share class(es) | | | 258 | | | | 2,020 | |
| Net increase (decrease) in shares outstanding | | | 9,004 | | | $ | 67,295 | |
| | |
| Year ended October 31, 2021: | | | | | | |
| Shares sold | | | 79,927 | | | $ | 748,083 | |
| Shares issued in reinvestment of dividends anddistributions | | | 5,448 | | | | 53,702 | |
| Shares purchased | | | (47,077 | ) | | | (456,874 | ) |
| Net increase (decrease) in shares outstanding beforeconversion | | | 38,298 | | | | 344,911 | |
| Shares issued upon conversion from other share class(es) | | | 2,962 | | | | 28,998 | |
| Net increase (decrease) in shares outstanding | | | 41,260 | | | $ | 373,909 | |
| | | | | | | | |
| | | |
| Share Class | | Shares | | | Amount | |
| | |
| Class C | | | | | | |
| Six months ended April 30, 2022: | | | | | | |
| Shares sold | | | 989 | | | $ | 10,000 | |
| Shares issued in reinvestment of dividends anddistributions | | | 7,892 | | | | 61,984 | |
| Shares purchased | | | (2,407 | ) | | | (18,412 | ) |
| Net increase (decrease) in shares outstanding beforeconversion | | | 6,474 | | | | 53,572 | |
| Shares purchased upon conversion into other shareclass(es) | | | (258 | ) | | | (2,020 | ) |
| Net increase (decrease) in shares outstanding | | | 6,216 | | | $ | 51,552 | |
| | |
| Year ended October 31, 2021: | | | | | | | | |
| Shares sold | | | 3,450 | | | $ | 34,123 | |
| Shares issued in reinvestment of dividends anddistributions | | | 961 | | | | 9,354 | |
| Shares purchased | | | (9,335 | ) | | | (94,421 | ) |
| Net increase (decrease) in shares outstanding beforeconversion | | | (4,924 | ) | | | (50,944 | ) |
| Shares purchased upon conversion into other shareclass(es) | | | (2,962 | ) | | | (28,998 | ) |
| Net increase (decrease) in shares outstanding | | | (7,886 | ) | | $ | (79,942 | ) |
| | |
| Class Z | | | | | | |
| Six months ended April 30, 2022: | | | | | | |
| Shares sold | | | 12,347 | | | $ | 104,887 | |
| Shares issued in reinvestment of dividends anddistributions | | | 225,666 | | | | 1,778,575 | |
| Shares purchased | | | (283,703 | ) | | | (2,809,742 | ) |
| Net increase (decrease) in shares outstanding | | | (45,690 | ) | | $ | (926,280 | ) |
| | |
| Year ended October 31, 2021: | | | | | | | | |
| Shares sold | | | 450,856 | | | $ | 4,063,420 | |
| Shares issued in reinvestment of dividends anddistributions | | | 44,107 | | | | 431,334 | |
| Shares purchased | | | (217,541 | ) | | | (2,132,230 | ) |
| Net increase (decrease) in shares outstanding beforeconversion | | | 277,422 | | | | 2,362,524 | |
| Shares purchased upon conversion into other shareclass(es) | | | (227,572 | ) | | | (2,384,950 | ) |
| Net increase (decrease) in shares outstanding | | | 49,850 | | | $ | (22,426 | ) |
| | |
| Class R6 | | | | | | |
| Six months ended April 30, 2022: | | | | | | |
| Shares sold | | | 165,119 | | | $ | 1,330,484 | |
| Shares issued in reinvestment of dividends anddistributions | | | 792,076 | | | | 6,228,077 | |
| Shares purchased | | | (864,446 | ) | | | (7,007,595 | ) |
| Net increase (decrease) in shares outstanding | | | 92,749 | | | $ | 550,966 | |
| | |
| Year ended October 31, 2021: | | | | | | | | |
| Shares sold | | | 1,745,152 | | | $ | 16,277,005 | |
| Shares issued in reinvestment of dividends anddistributions | | | 134,512 | | | | 1,310,829 | |
| Shares purchased | | | (2,245,276 | ) | | | (22,956,775 | ) |
| Net increase (decrease) in shares outstanding beforeconversion | | | (365,612 | ) | | | (5,368,941 | ) |
| Shares issued upon conversion from other share class(es) | | | 228,225 | | | | 2,384,950 | |
| Net increase (decrease) in shares outstanding | | | (137,387 | ) | | $ | (2,983,991 | ) |
| | | | |
| PGIM Real Estate Income Fund | | | 31 | |
Notes to Financial Statements (unaudited) (continued)
8. Borrowings
The RIC, on behalf of the Fund, along withother 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 temporaryfunding for capital share redemptions. The table below provides details of the SCA.
| | |
| | |
| | | SCA |
| Term of Commitment | | 10/1/2021 – 9/29/2022 |
| Total Commitment | | $ 1,200,000,000 |
Annualized Commitment Fee on
the Unused Portion of the SCA | | 0.15% |
| Annualized Interest Rate on Borrowings | | 1.20% plus the higher of (1)
the effective federal funds
rate, (2) the one-month
LIBOR rate or(3) zero
percent |
Certain affiliated registered investment companies that are parties to the SCA include portfolios that are subject to a predeterminedmathematical 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 utilizethe 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 theParticipating Funds in the SCA equitably.
The Fund utilized the SCA during the reporting period ended April 30, 2022. The average daily balance for the 28 daysthat the Fund had loans outstanding during the period was approximately $565,714, borrowed at a weighted average interest rate of 1.44%. The maximum loan outstanding amount during the period was $2,043,000. At April 30, 2022, the Fund did nothave an outstanding loan amount.
9. Risks of Investing in the Fund
The Fund’s 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 theFund’s Prospectus and Statement of Additional Information.
Active Trading Risk: The Fund actively and frequently trades its portfolio securities. Highportfolio turnover results in higher transaction costs, which can affect the Fund’s performance and have adverse tax consequences. In addition, high portfolio turnover may also mean that a proportionately greater amount of distributions toshareholders will be
taxed as ordinary income rather than long-term capital gains compared to investment companies with lower portfolio turnover.
Distribution Risk: The Fund’s distributions may consist of net investment income, if any, and net realized gains, if any, from the sale of investments and/orreturn of capital. The Fund will provide to shareholders early in each calendar year the final tax character of the Fund’s distributions for the previous year. Also, at such time that the Fund distribution is expected to be from sources otherthan current or accumulated net income, a notice to shareholders may be required.
Economic and Market Events Risk: Events in the U.S. and global financialmarkets, 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, may at times result in unusually high market volatility, which couldnegatively impact performance. Relatively reduced liquidity in credit and fixed income markets could adversely affect issuers worldwide.
Emerging MarketsRisk: The risks of foreign investments are greater for investments in or exposed to emerging markets. Emerging market countries typically have economic and political systems that are less fully developed, and can be expected to be less stable,than those of more developed countries. For example, the economies of such countries can be subject to rapid and unpredictable rates of inflation or deflation. Low trading volumes may result in a lack of liquidity and price volatility. Emergingmarket countries may have policies that restrict investment by non-U.S. investors, or that prevent non-U.S. investors from withdrawing their money at will.
The Fund may invest in some emerging markets that subject it to risks such as those associated with illiquidity, custody of assets, different settlement and clearanceprocedures and asserting legal title under a developing legal and regulatory regime to a greater degree than in developed markets or even in other emerging markets.
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 thanthose 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 stableand 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
| | | | |
| PGIM Real Estate Income Fund | | | 33 | |
Notes to Financial Statements (unaudited) (continued)
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 andthe 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 offoreign 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 expropriationof 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 mayapply.
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’sprospectus 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 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 theirinvestment 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 significantnegative 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 topursue 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.
Market Capitalization Risk: The Fund may invest in companies of any market capitalization. Generally, the stock prices of small- and mid-cap companies are less stable than the prices of large-cap stocks and may present greater risks. Large capitalization companies as a group could fall out of favor with themarket, causing the Fund to underperform compared to investments that focus on smaller capitalized companies.
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), geopolitical developments (includingtrading 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 disruptionscannot 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, reducedliquidity 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 Statesand 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.
COVID-19 and the related governmental and public responses have had and may continue to have an impact on the Fund’sinvestments and net asset value and have led and may continue to lead to increased market volatility and the potential for illiquidity in certain classes of securities and sectors of the market. They have also had and may continue to result inperiods of business disruption, business closures, inability to obtain raw materials, supplies and component parts, and reduced or disrupted operations for the issuers in which the Fund invests. The occurrence, reoccurrence and pendency of publichealth epidemics could adversely affect the economies and financial markets either in specific countries or worldwide.
Market Risk: Securities markets may bevolatile 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 ownedby the Fund fall, the value of your investment in the Fund will decline.
Non-Diversified Investment Company Risk: TheFund is non-diversified for purposes of the 1940 Act. This means that the Fund may invest a greater percentage of its assets in the securities of a single company or other issuer than a diversified fund.Investing in a non-diversified fund involves greater risk than investing in a diversified fund because a loss resulting from the decline in value of any one security may represent a greater portion of thetotal assets of a non-diversified fund.
Real Estate Investment Trust (“REIT”) Risk: Investing in REITsinvolves certain unique risks in addition to those risks associated with investing in the real estate industry in general. REITs may be affected by changes in the value of the underlying property owned by the REITs, while mortgage REITs may beaffected by the quality of any credit extended. REITs are dependent upon management skills, may not be diversified geographically or by property/mortgage asset type, and are subject to heavy cash flow dependency, default by borrowers andself-liquidation. REITs may be more volatile and/or more illiquid than other
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| PGIM Real Estate Income Fund | | | 35 | |
Notes to Financial Statements (unaudited) (continued)
types of equity securities. REITs (especially mortgage REITs) are subject to interest rate risks. REITs may incur significant amounts of leverage. The Fund willindirectly bear a portion of the expenses, including management fees, paid by each REIT in which it invests, in addition to the expenses of the Fund.
REITs mustalso meet certain requirements under the Internal Revenue Code of 1986, as amended (the Code) to avoid entity level tax and be eligible to pass-through certain tax attributes of their income to shareholders. REITs are consequently subject to therisk of failing to meet these requirements for favorable tax treatment and of failing to maintain their exemptions from registration under the Investment Company Act of 1940. REITs are subject to the risks of changes in the Code affecting their taxstatus.
Real Estate Related Securities Risk: Because the Fund invests in real estate securities, including REITs, the Fund is subject to the risks ofinvesting in the real estate industry, such as changes in general and local economic conditions, the supply and demand for real estate and changes in zoning and tax laws. Since the Fund concentrates in the real estate industry, its holdings can varysignificantly from broad market indices. As a result, the Fund’s performance can deviate from the performance of such indices. Because the Fund invests in stocks, there is the risk that the price of a particular stock owned by the Fund could godown or pay lower-than-expected or no dividends. In addition to an individual stock losing value, the value of the equity markets or of companies comprising the real estate industry could go down.
An investment in the Fund will be closely linked to the performance of the real estate markets. Real estate securities are subject to the same risks as directinvestments in real estate and mortgages, and their value will depend on the value of the underlying properties or the underlying loans or interests. The underlying loans may be subject to the risks of default or of prepayments that occur earlier orlater than expected, and such loans may also include so-called “subprime” mortgages. The value of these securities will rise and fall in response to many factors, including economic conditions, thedemand for rental property and interest rates. In particular, the value of these securities may decline when interest rates rise and will also be affected by the real estate market and by the management of the underlying properties.
Selection Risk: Selection risk is the risk that the securities selected by the subadviser will underperform the market, the relevant indices, or other funds withsimilar investment objectives and investment strategies. Individual REIT prices may drop because of the failure of borrowers to pay their loans, a dividend reduction, a disruption to the real estate investment sales market, changes in federal orstate taxation policies affecting REITs, or poor management of a REIT.
Value Style Risk: Since the Fund follows a value investment style, there is the risk that the value style may be outof 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 stocksmay 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 theFund’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.
10. Recent Regulatory Developments
On December 3,2020, the SEC announced that it voted to adopt a new rule that establishes an updated regulatory framework for fund valuation practices (the “Rule”). The Rule, in part, provides (i) a framework for determining fair value in good faithand (ii) provides for a fund Board’s assignment of its responsibility for the execution of valuation-related activities to a fund’s investment adviser. Further, the SEC is rescinding previously issued guidance on related issues. TheRule took effect on March 8, 2021, with a compliance date of September 8, 2022. Management is currently evaluating the Rule and its impact to the Fund.
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| PGIM Real Estate Income Fund | | | 37 | |
Liquidity Risk Management Program (unaudited)
Consistent with Rule 22e-4 under the 1940 Act (the “Liquidity Rule”), the Fund has adopted and implemented a liquidityrisk management program (the “LRMP”). The Fund’s LRMP seeks to assess and manage the Fund’s liquidity risk, which is defined as the risk that the Fund is unable to meet investor redemption requests without significantly dilutingthe remaining investors’ interests in the Fund. The Board has approved PGIM Investments LLC (“PGIM Investments”), the Fund’s investment manager, to serve as the administrator of the Fund’s LRMP. As part of itsresponsibilities as administrator, PGIM Investments has retained a third party to perform certain functions, including providing market data and liquidity classification model information.
The Fund’s LRMP includes a number of processes designed to support the assessment and management of its liquidity risk. In particular, the Fund’s LRMP includesno less than annual assessments of factors that influence the Fund’s liquidity risk; no less than monthly classifications of the Fund’s investments into one of four liquidity classifications provided for in the Liquidity Rule; a 15% of netassets limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); establishment of a minimum percentage of the Fund’s assets to be invested in investments classified as “highly liquid” (asdefined under the Liquidity Rule) if the Fund does not invest primarily in highly liquid investments; and regular reporting to the Board.
At a meeting of the Boardon March 1-3, 2022, PGIM Investments provided a written report (“LRMP Report”) to the Board addressing the operation, adequacy, and effectiveness of the Fund’s LRMP, including any materialchanges to the LRMP for the period from January 1, 2021 through December 31, 2021 (“Reporting Period”). The LRMP Report concluded that the Fund’s LRMP was reasonably designed to assess and manage the Fund’s liquidityrisk and was adequately and effectively implemented during the Reporting Period. There were no material changes to the LRMP during the Reporting Period. The LRMP Report further concluded that the Fund’s investment strategies continue to beappropriate given the Fund’s status as an open-end fund.
There can be no assurance that the LRMP will achieve itsobjectives in the future. Additional information regarding risks of investing in the Fund, including liquidity risks presented by the Fund’s investment portfolio, is found in the Fund’s Prospectus and Statement of Additional Information.
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| ∎ MAIL | | ∎ TELEPHONE | | ∎ WEBSITE |
| 655 Broad Street
Newark, NJ 07102 | | (800) 225-1852 | | pgim.com/investments |
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| PROXY VOTING |
| The Board ofTrustees of the Fund has delegated to the Fund’s subadvisers the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is availablewithout charge, upon request, by calling (800) 225-1852 or by visiting the Securities and Exchange Commission’s website at sec.gov. Information regarding how the Fund voted proxies relating toportfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website and on the Securities and Exchange Commission’s website. |
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| TRUSTEES |
| Ellen S.Alberding • Kevin J. Bannon • Scott E. Benjamin • Linda W. Bynoe • Barry H. Evans• Keith F. Hartstein • Laurie Simon Hodrick • Stuart S. Parker • Brian K. Reid• Grace C. Torres |
|
| OFFICERS |
| Stuart S.Parker, President • Scott E. Benjamin, Vice President • Christian J. Kelly, Treasurer and Principal Financial and Accounting Officer• Claudia DiGiacomo, Chief Legal Officer • Isabelle Sajous, Chief Compliance Officer • Jonathan Corbett, Anti-MoneyLaundering Compliance Officer • Andrew R. French, Secretary • Melissa Gonzalez, Assistant Secretary • Diana N. Huffman,Assistant Secretary • Kelly A. Coyne, Assistant Secretary • Patrick E. McGuinness, Assistant Secretary • Debra Rubano,Assistant Secretary • Lana Lomuti, Assistant Treasurer • Russ Shupak, Assistant Treasurer • Elyse M. McLaughlin,Assistant Treasurer • Deborah Conway, Assistant Treasurer |
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| MANAGER | | PGIM Investments LLC | | 655 Broad Street Newark, NJ 07102 |
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| SUBADVISERS | | PGIM Real Estate | | 7 Giralda Farms Madison, NJ07940 |
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| | | PGIM Real Estate (UK) Limited | | Grand Buildings, 1-3 Strand
TrafalgarSquare London, WC2N 5HR United Kingdom |
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| DISTRIBUTOR | | Prudential Investment Management Services LLC | | 655 Broad Street Newark, NJ 07102 |
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| CUSTODIAN | | The Bank of New York Mellon | | 240 Greenwich Street New York, NY 10286 |
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| TRANSFER AGENT | | Prudential Mutual Fund Services LLC | | PO Box 9658
Providence, RI 02940 |
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| INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | | PricewaterhouseCoopers LLP | | 300 Madison Avenue New York, NY 10017 |
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| FUND COUNSEL | | Willkie Farr & Gallagher LLP | | 787 Seventh Avenue New York, NY 10019 |
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| Aninvestor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund. An investor may obtain the prospectusand summary prospectus by visiting our website at pgim.com/investments or by calling (800) 225-1852. The prospectus and summary prospectus should be read carefully before investing. |
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| E-DELIVERY |
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| To receiveyour mutual fund documents online, go to pgim.com/investments/resource/edelivery and enroll. Instead of receiving printed documents by mail, you will receive notification via email when new materials are available. You can cancel yourenrollment or change your email address at any time by visiting the website address above. |
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| SHAREHOLDER COMMUNICATIONS WITH TRUSTEES |
| |
| Shareholderscan communicate directly with the Board of Trustees by writing to the Chair of the Board, PGIM Real Estate Income Fund, PGIM Investments, Attn: Board of Trustees, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with anindividual Trustee by writing to that Trustee at the same address. Communications are not screened before being delivered to the addressee. |
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| AVAILABILITY OF PORTFOLIO HOLDINGS |
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| The Fundfiles its complete schedule of portfolio holdings with the Securities and Exchange Commission on Form N-PORT. The Fund’s Form N-PORT filings are available on theCommission’s website at sec.gov. Form N-PORT is filed with the Commission quarterly, and each Fund’s full portfolio holdings as of the first and third fiscal quarter-ends will be made publiclyavailable 60 days after the end of each quarter at sec.gov. |
Mutual Funds:
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ARE NOT INSURED BY THE FDIC OR ANY
FEDERAL GOVERNMENT AGENCY | | MAY LOSE VALUE | | ARE NOT A DEPOSIT OF OR GUARANTEED
BY ANY BANK OR ANY BANK AFFILIATE |
PGIM REAL ESTATE INCOME FUND
| | | | | | | | |
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| SHARE CLASS | | A | | C | | Z | | R6 |
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| NASDAQ | | PRKAX | | PRKCX | | PRKZX | | PRKQX |
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| CUSIP | | 74441J761 | | 74441J753 | | 74441J746 | | 74441J670 |
MF228E2
Item 2 – Code of Ethics – Not required, as this is not an annual filing.
Item 3 – Audit Committee Financial Expert – Not required, as this is not an annual filing.
Item 4 – Principal Accountant Fees and Services – Not required, as this is not an annual filing.
Item 5 – Audit Committee of Listed Registrants – Not applicable.
| Item 6 – | Schedule of Investments – The schedule is included as part of the report to shareholders filed underItem 1 of this Form. |
| Item 7 – | Disclosure of Proxy Voting Policies and Procedures for Closed-EndManagement Investment Companies – Not applicable. |
| Item 8 – | Portfolio Managers of Closed-End Management Investment Companies– Not applicable. |
| Item 9 – | Purchases of Equity Securities by Closed-End ManagementInvestment Company and Affiliated Purchasers – Not applicable. |
| Item 10 – | Submission of Matters to a Vote of Security Holders – There have been no material changes to theseprocedures. |
Item 11 – Controls and Procedures
| | (a) | It is the conclusion of the registrant’s principal executive officer and principal financial officer thatthe 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 informationrequired 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 beenaccumulated 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 thatoccurred during the period covered by this report that has materially affected, or is likely to materially affect, the registrant’s internal control over financial reporting. |
| Item 12 – | Controls and Procedures - Disclosure of Securities Lending Activities forClosed-End Management Investment Companies – Not applicable. |
Item 13 – Exhibits
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly causedthis report to be signed on its behalf by the undersigned, thereunto duly authorized.
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| Registrant: | | Prudential Investment Portfolios 9 |
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| By: | | /s/ Andrew R. French |
| | Andrew R. French |
| | Secretary |
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| Date: | | June 17, 2022 |
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.
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| By: | | /s/ Stuart S. Parker |
| | Stuart S. Parker |
| | President and Principal Executive Officer |
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| Date: | | June 17, 2022 |
| |
| By: | | /s/ Christian J. Kelly |
| | Christian J. Kelly |
| | Treasurer and Principal Financial and Accounting Officer |
| |
| Date: | | June 17, 2022 |
