UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT
COMPANIES
| Investment Company Act file number: |
811-09999 | |
| Exact name of registrant as specified in charter: |
Prudential Investment Portfolios 2 | |
| (This Form N-CSR relates solely to the Registrant’s PGIM Jennison Small-Cap Core Equity Fund, PGIM Core Conservative Bond Fund, PGIM TIPS Fund, PGIM Quant Solutions Commodity Strategies Fund, PGIM Quant Solutions Mid-Cap Core Fund and PGIM Quant Solutions US Broad Market Index Fund) | ||
| Address of principal executive offices: |
655 Broad Street, 6th Floor | |
| Newark, New Jersey 07102 | ||
| Name and address of agent for service: |
Andrew R. French | |
| 655 Broad Street, 6th Floor | ||
| Newark, New Jersey 07102 | ||
| Registrant’s telephone number, including area code: |
800-225-1852 | |
| Date of fiscal year end: |
7/31/2023 | |
| Date of reporting period: |
7/31/2023 | |
Item 1 – Reports to Stockholders
PGIM Jennison Small-Cap Core Equity Fund
PGIM Core Conservative Bond Fund
PGIM TIPS Fund
PGIM Quant Solutions Commodity Strategies Fund
PGIM Quant Solutions Mid-Cap Core Fund
PGIM Quant Solutions US Broad Market Index Fund
ANNUAL REPORT
JULY 31, 2023
To enroll in e-delivery, go to pgim.com/investments/resource/edelivery
| 3 | ||||
| 4 | ||||
| 6 | ||||
| 8 | ||||
| 10 | ||||
| 13 | ||||
| 16 | ||||
| 19 | ||||
| 33 | ||||
| 36 | ||||
This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
The views expressed in this report and information about the Funds’ portfolio holdings are for the period covered by this report and are subject to change thereafter.
Mutual funds are distributed by Prudential Investment Management Services LLC, a Prudential Financial company and member SIPC. PGIM Fixed Income is a unit of PGIM, Inc. (PGIM), a registered investment adviser. Jennison Associates LLC is a registered investment adviser. PGIM Quantitative Solutions is the primary business name of PGIM Quantitative Solutions LLC, a wholly owned subsidiary of PGIM, Inc. (PGIM), a Prudential Financial company. © 2023 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 jurisdictions worldwide.
2 Visit our website at pgim.com/investments
|
Dear Shareholder:
| |
| We hope you find this annual report for the following funds informative and useful: PGIM Jennison Small-Cap Core Equity Fund, PGIM Core Conservative Bond Fund, PGIM TIPS Fund, PGIM Quant Solutions Commodity Strategies Fund, PGIM Quant Solutions Mid-Cap Core Fund, and PGIM Quant Solutions US Broad Market Index Fund. This report covers performance for the 12-month period ended July 31, 2023.
| ||
Although central banks raised interest rates aggressively to tame surging inflation during the period, the global economy and financial markets demonstrated resilience. Employers continued to hire, consumers continued to spend, home prices rose, and recession fears receded.
Stocks fell early in the period, bottomed in October, and then began a rally that eventually ended a bear market. Despite a banking industry crisis in March, stocks have continued to rise globally throughout 2023 as inflation cooled and the Federal Reserve slowed the pace of its rate hikes. Equities in both US and international markets posted gains during the period.
Bond market returns were mixed during the period as rising interest rates lifted yields to their highest level in two decades. US and global investment-grade bonds fell, while US high yield corporate bonds and emerging-market debt rose.
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, and financial goals. Your financial advisor can help you create a diversified investment plan that may include funds covering all the basic asset classes and that reflects your personal investor profile and risk tolerance. However, diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets.
At PGIM Investments, we provide access to active investment strategies across the global markets in the pursuit of consistent outperformance for investors. PGIM is the world’s 14th-largest investment manager with more than $1.3 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 and investment styles.
Thank you for choosing our family of funds.
Sincerely,
Stuart S. Parker, President
PGIM Investments LLC
September 15, 2023
PGIM Investments LLC 3
PGIM Jennison Small-Cap Core Equity Fund
Your Fund’s Performance (unaudited)
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at pgim.com/investments or by calling (800) 225-1852.
| Average Annual Total Returns as of 7/31/23 | ||||||
| One Year (%) | Five Years (%) | Since Inception (%) | ||||
| Class R6 |
8.77 | 7.79 | 10.34 (11/15/2016) | |||
| Russell 2000 Index |
7.91 |
5.09 | 7.85 | |||
The returns in the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. Since Inception returns are provided since 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 class’s inception date.
Growth of a $10,000 Investment
The graph compares a $10,000 investment in the Fund’s Class R6 shares with a similar investment in the Russell 2000 Index (the Index) by portraying the initial account values at the commencement of operations of Class R6 shares and the account values at the end of the current fiscal year (July 31, 2023), as measured on a quarterly basis. The R6 share class assumes an initial investment on November 15, 2016, while the Index assumes that the initial investment occurred on November 30, 2016. For purposes of
4 Visit our website at pgim.com/investments
the graph, and unless otherwise indicated, it has been assumed that (a) all recurring fees (including management fees) were deducted and (b) all dividends and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would have been lower.
Past performance does not predict future performance. Total returns and the ending account values in the graph include changes in share price and reinvestment of dividends and capital gains distributions in a hypothetical investment for the periods shown. The Fund’s total returns do not reflect the deduction of income taxes on an individual’s investment. Taxes may reduce your actual investment returns on income or gains paid by the Fund or any gains you may realize if you sell your shares.
Benchmark Definition
Russell 2000 Index—The Russell 2000® Index is an unmanaged index of the 2,000 smallest US companies included in the Russell 3000® Index. It gives an indication of how the stock prices of smaller companies have performed.
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.
Presentation of Fund Holdings as of 7/31/2023
| PGIM Jennison Small-Cap Core Equity Fund Ten Largest Holdings |
Line of Business | % of Net Assets | ||
| elf Beauty, Inc. |
Personal Care Products | 2.5% | ||
| Chord Energy Corp. |
Oil, Gas & Consumable Fuels | 2.0% | ||
| Cactus, Inc. (Class A Stock) |
Energy Equipment & Services | 1.9% | ||
| Kirby Corp. |
Marine Transportation | 1.8% | ||
| Trinity Industries, Inc. |
Machinery | 1.8% | ||
| Constellium SE |
Metals & Mining | 1.6% | ||
| Sprout Social, Inc. (Class A Stock) |
Software | 1.6% | ||
| Axis Capital Holdings Ltd. |
Insurance | 1.6% | ||
| Century Communities, Inc. |
Household Durables | 1.6% | ||
| Pinnacle Financial Partners, Inc. |
Banks | 1.5% | ||
Holdings reflect only long-term investments and are subject to change.
5
PGIM Core Conservative Bond Fund
Your Fund’s Performance (unaudited)
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at pgim.com/investments or by calling (800) 225-1852.
| Average Annual Total Returns as of 7/31/23 | ||||||
| One Year (%) | Five Years (%) | Since Inception (%) | ||||
| Class R6 |
-3.66 | 0.29 | 0.27 (11/15/2016) | |||
| Bloomberg US Aggregate Bond Index |
-3.37 |
0.75 | 0.86 | |||
The returns in the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. Since Inception returns are provided since 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 class’s inception date.
Growth of a $10,000 Investment
The graph compares a $10,000 investment in the Fund’s Class R6 shares with a similar investment in the Bloomberg US Aggregate Bond Index (the Index) by portraying the initial account values at the commencement of operations of Class R6 shares and the account values at the end of the current fiscal year (July 31, 2023), as measured on a quarterly basis. The R6 share class assumes an initial investment on November 15, 2016, while the Index assumes that the initial investment occurred on November 30,
6 Visit our website at pgim.com/investments
2016. For purposes of the graph, and unless otherwise indicated, it has been assumed that (a) all recurring fees (including management fees) were deducted and (b) all dividends and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would have been lower.
Past performance does not predict future performance. Total returns and the ending account values in the graph include changes in share price and reinvestment of dividends and capital gains distributions in a hypothetical investment for the periods shown. The Fund’s total returns do not reflect the deduction of income taxes on an individual’s investment. Taxes may reduce your actual investment returns on income or gains paid by the Fund or any gains you may realize if you sell your shares.
Benchmark Definition
Bloomberg US Aggregate Bond Index—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 corporate securities, mortgage pass-through securities, and asset-backed 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.
| Credit Quality expressed as a percentage of total investments as of 7/31/23 (%) | ||||
| AAA |
71.7 | |||
| AA |
5.4 | |||
| A |
9.5 | |||
| BBB |
12.1 | |||
| Cash/Cash Equivalents |
1.3 | |||
| Total | 100 | |||
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 Ratings Inc. (Fitch). Credit ratings reflect the common nomenclature used by both S&P and Fitch. Where applicable, ratings are converted to the comparable S&P/Fitch rating tier nomenclature. These rating agencies are independent and are widely used. The Not Rated category consists of securities that have not been rated by an NRSRO. Credit ratings are subject to change.
7
Your Fund’s Performance (unaudited)
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at pgim.com/investments or by calling (800) 225-1852.
| Average Annual Total Returns as of 7/31/23 | ||||||
| One Year (%) | Five Years (%) | Since Inception (%) | ||||
| Class R6 |
-5.52 | 2.27 | 1.88 (11/15/2016) | |||
| Bloomberg US Treasury Inflation-Protected Securities (TIPS) Index |
||||||
| -5.40 | 2.62 | 2.32 | ||||
The returns in the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. Since Inception returns are provided since 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 class’s inception date.
Growth of a $10,000 Investment
The graph compares a $10,000 investment in the Fund’s Class R6 shares with a similar investment in the Bloomberg US Treasury Inflation-Protected (TIPS) Index (the Index) by portraying the initial account values at the commencement of operations of Class R6 shares and the account values at the end of the current fiscal year (July 31, 2023), as measured on a quarterly basis. The R6 share class assumes an initial investment on November 15, 2016, while the Index assumes that the initial investment occurred on
8 Visit our website at pgim.com/investments
November 30, 2016. For purposes of the graph, and unless otherwise indicated, it has been assumed that (a) all recurring fees (including management fees) were deducted and (b) all dividends and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would have been lower.
Past performance does not predict future performance. Total returns and the ending account values in the graph include changes in share price and reinvestment of dividends and capital gains distributions in a hypothetical investment for the periods shown. The Fund’s total returns do not reflect the deduction of income taxes on an individual’s investment. Taxes may reduce your actual investment returns on income or gains paid by the Fund or any gains you may realize if you sell your shares.
Benchmark Definition
Bloomberg US Treasury Inflation-Protected (TIPS) Index—The Bloomberg US Treasury Inflation-Protected (TIPS) Index is an unmanaged index that consists of inflation-protected securities issued by the US Treasury.
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.
| Credit Quality expressed as a percentage of total investments as of 7/31/23 (%) | ||||
| AAA |
98.8 | |||
| Cash/Cash Equivalents |
1.2 | |||
| Total | 100 | |||
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 Ratings Inc. (Fitch). Credit ratings reflect the common nomenclature used by both S&P and Fitch. Where applicable, ratings are converted to the comparable S&P/Fitch rating tier nomenclature. These rating agencies are independent and are widely used. The Not Rated category consists of securities that have not been rated by an NRSRO. Credit ratings are subject to change.
9
PGIM Quant Solutions Commodity Strategies Fund
Your Fund’s Performance (unaudited)
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at pgim.com/investments or by calling (800) 225-1852.
| Average Annual Total Returns as of 7/31/23 | ||||||
| One Year (%) | Five Years (%) | Since Inception (%) | ||||
| Class Z |
-10.36 | N/A | 11.20 (12/14/2021) | |||
| Class R6 |
-10.42 | 7.26 | 6.06 (11/15/2016) | |||
| Bloomberg Commodity Index |
-7.88 |
6.47 | 5.02 | |||
| Average Annual Total Returns as of 7/31/23 Since Inception (%) | ||||
| Class Z 12/14/2021 |
Class R6 11/15/2016 | |||
| Bloomberg Commodity Index |
10.31 | 5.02 | ||
The returns in the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. Since Inception returns are provided since 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 class’s inception date.
10 Visit our website at pgim.com/investments
Growth of a $10,000 Investment
The graph compares a $10,000 investment in the Fund’s Class R6 shares with a similar investment in the Bloomberg Commodity Index (the Index) by portraying the initial account values at the commencement of operations of Class R6 shares and the account values at the end of the current fiscal year (July 31, 2023), as measured on a quarterly basis.The R6 share class assumes an initial investment on November 15, 2016, while the Index assumes that the initial investment occurred on November 30, 2016. For purposes of the graph, and unless otherwise indicated, it has been assumed that (a) all recurring fees (including management fees) were deducted and (b) all dividends and distributions were reinvested. The line graph provides information for Class R6 shares only. As indicated in the tables provided earlier and in the following paragraphs, performance for other share classes will vary due to the differing charges and expenses applicable to each share class (as indicated in the following paragraphs). Without waiver of fees and/or expense reimbursements, if any, the returns would have been lower.
Past performance does not predict future performance. Total returns and the ending account values in the graph include changes in share price and reinvestment of dividends and capital gains distributions in a hypothetical investment for the periods shown. The Fund’s total returns do not reflect the deduction of income taxes on an individual’s investment. Taxes may reduce your actual investment returns on income or gains paid by the Fund or any gains you may realize if you sell your shares.
11
PGIM Quant Solutions Commodity Strategies Fund
Your Fund’s Performance (continued)
The returns in the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. The average annual total returns take into account applicable sales charges, which are described for each share class in the table below.
| Class Z | Class R6 | |||
|
Maximum initial sales charge |
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) | None | None | ||
| Annual distribution and service (12b-1) fees (shown as a percentage of average daily net assets) | None | None | ||
Benchmark Definition
Bloomberg Commodity Index—The Bloomberg Commodity Index is a diversified benchmark for the commodity futures market. It is composed of futures contracts on 22 physical commodities traded on US exchanges, with the exception of aluminum, nickel, and zinc, which trade on the London Metal Exchange (LME).
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.
Presentation of Fund Holdings as of 7/31/2023
|
PGIM Quant Solutions Commodity Strategies Fund Ten Largest Commodities Future Exposure Holdings |
% of Net Assets | |
| Gold 100 OZ |
14.7% | |
| WTI Crude |
10.0% | |
| Brent Crude |
7.9% | |
| Natural Gas |
6.3% | |
| Corn |
6.2% | |
| Soybean Oil |
5.2% | |
| Soybean |
4.6% | |
| Copper |
4.4% | |
| Gasoline RBOB |
4.0% | |
| Silver |
3.7% | |
12 Visit our website at pgim.com/investments
PGIM Quant Solutions Mid-Cap Core Fund
Your Fund’s Performance (unaudited)
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at pgim.com/investments or by calling (800) 225-1852.
| Average Annual Total Returns as of 7/31/23 | ||||||
| One Year (%) | Five Years (%) | Since Inception (%) | ||||
| Class R6 |
11.78 | 6.66 | 8.40 (11/17/2016) | |||
| S&P MidCap 400 Index |
10.47 |
8.28 | 9.78 | |||
The returns in the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. Since Inception returns are provided since 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 class’s inception date.
Growth of a $10,000 Investment
The graph compares a $10,000 investment in the Fund’s Class R6 shares with a similar investment in the S&P MidCap 400 Index (the Index) by portraying the initial account values at the commencement of operations of Class R6 shares and the account values at the end of the current fiscal year (July 31, 2023), as measured on a quarterly basis. The R6 share class assumes an initial investment on November 17, 2016, while the Index assumes that the initial investment occurred on November 30, 2016. For
13
PGIM Quant Solutions Mid-Cap Core Fund
Your Fund’s Performance (continued)
purposes of the graph, and unless otherwise indicated, it has been assumed that (a) all recurring fees (including management fees) were deducted and (b) all dividends and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would have been lower.
Past performance does not predict future performance. Total returns and the ending account values in the graph include changes in share price and reinvestment of dividends and capital gains distributions in a hypothetical investment for the periods shown. The Fund’s total returns do not reflect the deduction of income taxes on an individual’s investment. Taxes may reduce your actual investment returns on income or gains paid by the Fund or any gains you may realize if you sell your shares.
Benchmark Definition
S&P MidCap 400 Index*—The S&P MidCap 400 Index is an unmanaged index of 400 domestic stocks chosen for market capitalization, liquidity and industry representation. It gives a broad look at how US mid-cap stock prices have performed.
*The S&P MidCap 400 Index (“Index”) is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by PGIM, Inc. and/or its affiliates. Copyright © 2023 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 mutual fund, or taxes that may be paid by an investor.
14 Visit our website at pgim.com/investments
Presentation of Fund Holdings as of 7/31/2023
|
PGIM Quant Solutions Mid-Cap Core Fund Ten Largest Holdings |
Asset Class/Line of Business | % of Net Assets | ||
| Owens Corning |
Building Products | 1.3% | ||
| EMCOR Group, Inc. |
Construction & Engineering | 1.3% | ||
| iShares Core S&P Mid-Cap ETF |
Unaffiliated Exchange-Traded Funds | 1.2% | ||
| United Therapeutics Corp. |
Biotechnology | 1.2% | ||
| Unum Group |
Insurance | 1.1% | ||
| Dynatrace, Inc. |
Software | 1.1% | ||
| Reinsurance Group of America, Inc. |
Insurance | 1.0% | ||
| Eagle Materials, Inc. |
Construction Materials | 1.0% | ||
| Tenet Healthcare Corp. |
Health Care Providers & Services | 1.0% | ||
| Paylocity Holding Corp. |
Professional Services | 1.0% | ||
Holdings reflect only long-term investments and are subject to change.
15
PGIM Quant Solutions US Broad Market Index Fund
Your Fund’s Performance (unaudited)
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at pgim.com/investments or by calling (800) 225-1852.
| Average Annual Total Returns as of 7/31/23 | ||||||
| One Year (%) | Five Years (%) | Since Inception (%) | ||||
| Class R6 |
12.59 | 11.65 | 13.17 (11/17/2016) | |||
| S&P Composite 1500 Index |
12.68 |
11.77 | 13.29 | |||
The returns in the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. Since Inception returns are provided since 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 class’s inception date.
Growth of a $10,000 Investment
The graph compares a $10,000 investment in the Fund’s Class R6 shares with a similar investment in the S&P Composite 1500 Index (the Index) by portraying the initial account values at the commencement of operations of Class R6 shares and the account values at the end of the current fiscal year (July 31, 2023), as measured on a quarterly basis. The R6 share class assumes an initial investment on November 17, 2016, while the Index assumes that the initial investment occurred on November 30, 2016. For
16 Visit our website at pgim.com/investments
purposes of the graph, and unless otherwise indicated, it has been assumed that (a) all recurring fees (including management fees) were deducted and (b) all dividends and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would have been lower.
Past performance does not predict future performance. Total returns and the ending account values in the graph include changes in share price and reinvestment of dividends and capital gains distributions in a hypothetical investment for the periods shown. The Fund’s total returns do not reflect the deduction of income taxes on an individual’s investment. Taxes may reduce your actual investment returns on income or gains paid by the Fund or any gains you may realize if you sell your shares.
Benchmark Definition
S&P Composite 1500 Index*—The S&P Composite 1500® Index is an unmanaged index of the stocks of 1,500 US companies, with market capitalizations ranging from small to large. The S&P Composite 1500 Index is a combination of three leading US stock indices: The S&P 500 Index (which measures the performance of US large cap stocks), the S&P MidCap 400 Index (which measures the performance of mid cap stocks) and the S&P 600 Index (which measures the performance of US small cap stocks) and gives an indication of how the broad US stock market has performed.
*The S&P Composite 1500 Index (the Index) is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by PGIM, Inc. and/or its affiliates. Copyright© 2023 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 mutual fund, or taxes that may be paid by an investor.
17
PGIM Quant Solutions US Broad Market Index Fund
Your Fund’s Performance (continued)
Presentation of Fund Holdings as of 7/31/2023
| PGIM Quant Solutions US Broad Market Index Fund | ||||
| Ten Largest Holdings | Asset Class/Line of Business | % of Net Assets | ||
| Apple, Inc. |
Technology Hardware, Storage & Peripherals | 6.7% | ||
| Microsoft Corp. |
Software | 5.8% | ||
| Amazon.com, Inc. |
Broadline Retail | 2.8% | ||
| NVIDIA Corp. |
Semiconductors & Semiconductor Equipment | 2.7% | ||
| Alphabet, Inc. (Class A Stock) |
Interactive Media & Services | 1.8% | ||
| Tesla, Inc. |
Automobiles | 1.7% | ||
| Meta Platforms, Inc. (Class A Stock) |
Interactive Media & Services | 1.6% | ||
| Alphabet, Inc. (Class C Stock) |
Interactive Media & Services | 1.6% | ||
| Berkshire Hathaway, Inc. (Class B Stock) |
Financial Services | 1.5% | ||
| iShares Core S&P 500 ETF |
Unaffiliated Exchange-Traded Funds | 1.3% | ||
Holdings reflect only long-term investments and are subject to change.
18 Visit our website at pgim.com/investments
PGIM Jennison Small-Cap Core Equity Fund
Strategy and Performance Overview* (unaudited)
How did the Fund perform?
The PGIM Jennison Small Cap Core Equity Fund’s Class R6 shares returned 8.77% in the 12-month reporting period ended July 31, 2023, outperforming the 7.91% return of the Russell 2000 Index (the Index).
What was the market environment?
| ● | Prior to the start of the reporting period, in June 2022, inflation rose above 9%, the highest level in four decades. Between March 2022 and July 2023, the US Federal Reserve (Fed) raised the federal funds rate 11 times, from near zero to a range of 5.25–5.50%, reflecting the Fed’s urgency to reestablish price stability. |
| ● | The investment backdrop during the reporting period can be divided into two sections. In the last five months of 2022, investors remained uncertain about inflationary pressures and Fed policy, heightened geopolitical tension, war in Ukraine, and expectations that US economic growth would slow and could enter a recession. |
| ● | In the first seven months of 2023, however, the economy delivered better-than-feared results, with continued—albeit moderating—growth led by resilient consumer spending amid ongoing labor market strength. As inflationary pressures eased, the Fed slowed the pace of monetary tightening, which encouraged investors. Investors appeared to be surprised that many companies were able to effectively cut their costs and reduce their head counts, enabling them to exceed Wall Street expectations. |
| ● | The collapse in March 2023 of Silicon Valley Bank, the 16th largest US bank by assets, was largely contained. Regulators closed several ailing banks (Silicon Valley Bank, First Republic Bank, and Signature Bank, none of which were held by the Fund) and provided additional bank borrowing facilities and deposit guarantees. However, the underlying issue of asset/liability mismatch on many banks’ balance sheets remained unresolved. |
| ● | Interest in artificial intelligence (AI)—catalyzed by the launch of ChatGPT in late November 2022—continued to grow through the first half of 2023. Investors expressed the greatest enthusiasm for companies supplying the foundational components to design, build, and run AI and machine-learning capabilities. |
| ● | For the whole period, small-cap core stocks underperformed their large - and mid-cap counterparts. In the Index, the energy, consumer discretionary, information technology, industrials, materials, and consumer staples sectors outperformed. Healthcare gained, but lagged the Index, while the communication services, utilities, real estate, and financials sectors lost ground. |
What worked?
| ● | From a sector perspective, consumer staples holdings added the most value to the Fund’s performance relative to the Index. Stock selection in financials, materials, and consumer discretionary was also comparatively strong. |
19
PGIM Jennison Small-Cap Core Equity Fund
Strategy and Performance Overview* (continued)
| ● | Individual positions that performed well were diversified across sectors, with top performers including e.l.f. Beauty Inc., Shift4 Payments Inc., Apellis Pharmaceuticals Inc., Century Communities Inc., and KnowBe4 Inc. |
| ● | e.l.f. Beauty’s first-to-mass innovation focus drove a pickup in new product contribution to topline growth and attracted new consumers to the brand. Market share gains were driven by enhanced and efficient marketing spending, productivity improvements, and investments in innovation. |
| ● | Payment processing company Shift4 Payments processes payments for over 200,000 businesses in the retail, hospitality, leisure, and restaurant industries. Shares rose on strong demand by customers in key industries. |
| ● | Biotech company Apellis Pharmaceuticals focuses on complement therapeutics. In February 2023, the company had its second drug, Syfovre, approved for the treatment of geographic atrophy. Apellis also has a growing pipeline of complement therapeutics focused on rare disease, ophthalmology, and neurology; however, the position was eliminated from the Fund late in the period on reports of inflammation from Syfovre. |
| ● | Residential construction company Century Communities benefited from strong and accelerating demand. In addition, cycle times and supply-chain costs continued to improve, leading to much better margins. |
| ● | KnowBe4 operates the world’s largest integrated platform for security awareness training, combined with simulated phishing attacks. Heightened awareness of cyberattacks helped the company grow. Shares rose further in the lead-up to the company’s acquisition early in 2023 by private equity firm Vista Equity Partners. |
What didn’t work?
| ● | Holdings in information technology, real estate, industrials, and healthcare detracted the most from relative performance. |
| ● | Notably underperforming individual holdings, also diversified across sectors, included Grid Dynamics Holdings Inc., Great Lakes Dredge & Dock Corp., National Storage Affiliates Trust, NextEra Energy Partners LP, and Avid Bioservices Inc. |
| ● | Shares of global digital engineering company Grid Dynamics were weak amid budget tightening by customers and poor visibility, as well as an overall sell-off of higher valuation software stocks. Nevertheless, the company continues to effectively execute its recovery playbook, with improving customer diversification and incremental scale with existing customers, as well as through inorganic growth. |
| ● | Dredging services provider Great Lakes Dredge & Dock was hurt by poor weather and extended dry dock time, and its backlog reached the lowest level in several years. Late in the period, the business improved, with large projects that were delayed in 2022 coming to market for bid. |
20 Visit our website at pgim.com/investments
| ● | Industrial real estate investment trust (REIT) National Storage Affiliates suffered due to headwinds from interest expenses and declining occupancy in most markets. Jennison continues to like the company’s unique operating structure and focus on Sun Belt suburban markets. |
| ● | Shares in renewable energy utility NextEra Energy Partners declined amid rising rates and US bank failures and credit concerns that shone a light on the company’s complex financing model. Jennison continues to maintain the Fund’s holdings in the stock due to NextEra’s unmatched distribution growth and the presence of a strong, stable parent company (NextEra Energy Inc.) that supports that growth. |
| ● | Avid Bioservices, a drug substance and biologics contract manufacturing organization, posted inconsistent results in the period. Most recently, it posted growth in revenues and bookings, but these positives were more than offset by substantially weaker-than-expected revenue guidance and margin commentary. Management attributed the shortfall in guidance to the company’s mix of early-stage vs. late-stage bookings. |
Current outlook
| ● | The US economy stands in better shape than Jennison anticipated when the reporting period began. Robust employment has sustained consumer spending at a solid pace. Consumer confidence currently reflects optimism in the near term despite announced workforce reductions, interest rates at the highest levels in over a decade, and reduced credit availability in the financial system. It therefore seems likely that the slope of the economy’s slowing trajectory will remain shallower while employment remains healthy. |
| ● | Inflationary pressures, while still evident, will likely continue to moderate. Jennison expects further increases in interest rates, though evidence leans towards the bulk of the rate increases being behind us for this cycle. |
| ● | Trends in technology spending, which weakened earlier last year, have begun to stabilize. A combination of easing year-over-year comparisons and the priority of digital transformation, with an emerging impetus from AI, increasingly suggest a rebound in spending and a return to longer-term investment trends moving toward the end of 2023. The strong rebound in the prices of select technology shares year-to-date reflects both the depressed nature of valuations when 2023 began and the first signs of upgrades to near- and medium-term revenue and profit expectations from company managements. |
| ● | Jennison continues to believe the market is set up for a rotation of the past decade’s leadership. The banking crisis, fears of a potential recession, and the AI mania have put mega-cap technology-related shares back on top. But extreme valuation differentials, a bear market, the prospect of improving relative fundamentals for |
21
PGIM Jennison Small-Cap Core Equity Fund
Strategy and Performance Overview* (continued)
| small-cap stocks and the inevitable breakdown in blue chip growth, in Jennison’s view are likely to create the conditions required to usher in a new era of small-cap outperformance. |
*This strategy and performance overview, which discusses what strategies or holdings (including derivatives, if applicable) affected the Fund’s performance, is compiled based on how the Fund performed relative to the Fund’s benchmark index and is viewed for performance attribution purposes at the aggregate Fund level, which in most instances will not directly correlate to the amounts disclosed in the Statement of Operations which conform to US generally accepted accounting principles.
22 Visit our website at pgim.com/investments
PGIM Core Conservative Bond Fund
Strategy and Performance Overview*
How did the Fund perform?
The PGIM Core Conservative Bond Fund’s Class R6 shares returned -3.66% in the 12-month reporting period that ended July 31, 2023, underperforming the -3.37% return of the Bloomberg US Aggregate Bond Index (the Index).
What were the market conditions?
| ● | While there was no shortage of fear in the bond markets during the reporting period, which was largely marked by an overhang of uncertainty and economic negatives, the interest rate volatility, COVID-19-era supply/demand imbalances, and steep losses that predominated during the first half of the reporting period showed signs of dissipating in the second half. Despite a series of rolling crises—including a string of regional bank failures, the debt ceiling debate, ongoing recession concerns, and still-high inflation—the US economy avoided the worst of potential outcomes, and fixed income returns skewed largely positive over the last six months of the reporting period. |
| ● | Against the backdrop of historic lows in unemployment and still-high inflation, the US Federal Reserve (the Fed) continued its monetary tightening path, raising interest rates by an additional 300 basis points (bps) in a succession of rate hikes over the reporting period. (One basis point equals 0.01%.) Although the Fed raised interest rates by 25 bps and indicated that its inflation fight was not yet over at the July Federal Open Market Committee (FOMC) meeting, the main signal from the meeting was that the end of the rate-hiking cycle was likely close. |
| ● | A sharply higher federal funds rate, coupled with macroeconomic uncertainty, led to enormous volatility being priced into developed market interest rates, with sharply higher front-end rates and lower long-dated yields. From -0.22% on July 31, 2022, the 10-year/2-year US Treasury spread declined to -0.91% at the end of the reporting period, while the 2-year US Treasury yield rose by 199 bps to end the reporting period at 4.88%. |
| ● | Despite elevated volatility, US investment-grade corporate spreads tightened over the reporting period, as expectations for an economic hard landing moderated and fundamentals remained solid. Securitized credit spreads were mixed, with high-quality collateralized loan obligation (CLO) spreads tightening over the reporting period and commercial mortgage-backed securities (CMBS) spreads widening as the commercial real estate sector remained challenged. Meanwhile, agency mortgage-backed securities (MBS) underperformed versus US Treasuries over the reporting period, as elevated interest rate volatility weighed on the sector over the first half of the reporting period. |
What worked?
| ● | Overall security selection and sector allocation both contributed to the Fund’s performance over the reporting period. Within security selection, selection in investment-grade corporates, US Treasuries, and CMBS contributed the most. |
23
PGIM Core Conservative Bond Fund
Strategy and Performance Overview* (continued)
| ● | Within sector allocation, overweights relative to the Index in municipal bonds and MBS contributed the most. |
| ● | Within credit, selection in banking, midstream energy, and healthcare & pharmaceuticals contributed. In individual security selection, relative to the Index, the Fund benefited from overweight positioning in Energy Transfer LP (midstream energy), General Motors Co. (automotive) and The Boeing Co. (aerospace & defense). |
What didn’t work?
| ● | While overall security selection contributed to the Fund’s performance during the reporting period, selection in MBS and municipal bonds detracted. |
| ● | While overall sector allocation contributed to performance, underweights relative to the Index in investment-grade corporates and emerging markets detracted. |
| ● | Within credit, the Fund’s positioning in electric utilities and finance companies detracted from performance. In individual security selection, the Fund’s positioning in Berkshire Hathaway Inc. (electric utilities), AT&T Inc. (telecom), and Oracle Corp. (technology) also detracted. |
| ● | In aggregate, the Fund’s yield curve and duration positioning detracted from performance as US Treasury yields rose and the curve inverted further. (A yield curve is a line graph that illustrates the relationship between the yields and maturities of fixed income securities. It is created by plotting the yields of different maturities for the same type of bonds.) (Duration measures the sensitivity of the price—the value of principal—of a bond to a change in interest rates.) |
Current outlook
| ● | Although the rate-hike debate continues for the Fed, the increments of its hikes are getting smaller and it declined to raise rates at all at its June 2023 FOMC meeting—signs that most of the increases are behind us and that the hikes to come will increasingly be “fine-tuning” exercises. With the prospect of balance returning to the labor market, PGIM Fixed Income sees a path for core personal consumption expenditures to decelerate below 3.0% by the end of 2023, driven lower by core non-housing services prices. |
| ● | Clear and sustained evidence of moderating inflation, coupled with below-trend growth, should be enough, in PGIM Fixed Income’s view, for the Fed to pause its rate-hike campaign at 5.5% prior to initiating a 50-to-75 bps fine-tuning campaign of cuts as early as the fourth quarter of 2023. |
| ● | PGIM Fixed Income sees the US yield curve remaining solidly inverted due to only marginal repricing at the front end. Meanwhile, PGIM Fixed Income believes demand at the back end of the curve should remain consistent—particularly given the relatively high level of rates compared to past years—based on the rolling series of crises that continue to emerge but have yet to produce the more-feared outcomes. |
24 Visit our website at pgim.com/investments
| ● | With the pace of central bank tightening expected to dramatically downshift in the quarters ahead, and given PGIM Fixed Income’s expectation for the US 10-year Treasury yield to trade in its current range, interest rate volatility is likely to continue to decline, which should allow spreads to remain range bound or, more likely, to narrow in the months ahead, boosting fixed income returns. The combination of increased income and the potential for capital appreciation creates an attractive total return profile for those with longer-term time horizons, in PGIM Fixed Income’s view. |
| ● | PGIM Fixed Income maintains its positive view of the spread sectors over the medium to long term. |
*This strategy and performance overview, which discusses what strategies or holdings (including derivatives, if applicable) affected the Fund’s performance, is compiled based on how the Fund performed relative to the Fund’s benchmark index and is viewed for performance attribution purposes at the aggregate Fund level, which in most instances will not directly correlate to the amounts disclosed in the Statement of Operations which conform to US generally accepted accounting principles.
25
PGIM TIPS Fund
Strategy and Performance Overview*
How did the Fund perform?
The PGIM TIPS Fund’s Class R6 shares returned -5.52% in the 12-month reporting period that ended July 31, 2023, underperforming the -5.40% return of the Bloomberg US Treasury Inflation-Protected (TIPS) Index (the Index).
What were the market conditions?
| ● | While there was no shortage of fear in the bond markets during the reporting period, which was largely marked by an overhang of uncertainty and economic negatives, the interest rate volatility, COVID-19-era supply/demand imbalances, and steep losses that predominated during the first half of the reporting period showed signs of dissipating in the second half. Despite a series of rolling crises—including a string of regional bank failures, the debt ceiling debate, ongoing recession concerns, and still-high inflation—the US economy avoided the worst of potential outcomes, and fixed income returns skewed largely positive over the last six months of the reporting period. |
| ● | The US saw a marked deceleration in inflation throughout the reporting period, with the consumer price index (CPI) rising 3% in June 2023 from the year before, the smallest advance in more than two years. Core CPI rose 4.8% in June 2023, which was also the lowest since 2021. Reflecting the decline in inflation expectations, the five-year breakeven inflation rate declined from 2.73% on July 31, 2022, to 2.27% at the end of the reporting period. |
| ● | Against the backdrop of historic lows in unemployment and still-high inflation, the US Federal Reserve (the Fed) continued its monetary tightening path, raising interest rates by an additional 300 basis points (bps) in a succession of rate hikes over the reporting period. (One basis point equals 0.01%.) Although the Fed raised interest rates by 25 bps and indicated that its inflation fight was not yet over at the July Federal Open Market Committee (FOMC) meeting, the main signal from the meeting was that the end of the rate-hiking cycle was likely close. |
| ● | A sharply higher federal funds rate, coupled with macroeconomic uncertainty, led to enormous volatility being priced into developed market interest rates, with sharply higher front-end rates and lower long-dated yields. From -0.22% on July 31, 2022, the 10-year/2-year US Treasury spread declined to -0.91% at the end of the reporting period, while the 2-year US Treasury yield rose by 199 bps to end the reporting period at 4.88%. |
| ● | Just as longer-term US Treasuries saw substantial volatility throughout the reporting period, yields on short-term securities, which influence money market yields, also rose substantially. The 3-month US Treasury bill rose from 2.37% to 5.42% during the reporting period, while the Secured Overnight Financing Rate rose from 2.27% to 5.31% over that same time. |
26 Visit our website at pgim.com/investments
What worked?
| ● | Security selection was the largest contributor to the Fund’s performance during the reporting period. |
| ● | Yield curve positioning also contributed to performance during the reporting period. (A yield curve is a line graph that illustrates the relationship between the yields and maturities of fixed income securities. It is created by plotting the yields of different maturities for the same type of bonds.) |
What didn’t work?
The duration of the Fund was tactically managed relative to the Index during the reporting period. (Duration measures the sensitivity of the price—the value of principal—of a bond to a change in interest rates.) Overall, duration positioning detracted from performance. The Fund ended the reporting period with a neutral duration position relative to the Index.
Current outlook
| ● | Although the rate-hike debate continues for the Fed, the increments of its hikes are getting smaller and it declined to raise rates at all at its June 2023 FOMC meeting—signs that most of the increases are behind us and that the hikes to come will increasingly be “fine-tuning” exercises. With the prospect of balance returning to the labor market, PGIM Fixed Income sees a path for core personal consumption expenditures to decelerate below 3.0% by the end of 2023, driven lower by core non-housing services prices. |
| ● | Clear and sustained evidence of moderating inflation, coupled with below-trend growth, should be enough, in PGIM Fixed Income’s view, for the Fed to pause its rate-hike campaign at 5.5% prior to initiating a 50-to-75 bps fine-tuning campaign of cuts as early as the fourth quarter of 2023. |
| ● | PGIM Fixed Income sees the US yield curve remaining solidly inverted due to only marginal repricing at the front end. Meanwhile, PGIM Fixed Income believes demand at the back end of the curve should remain consistent—particularly given the relatively high level of rates compared to past years—based on the rolling series of crises that continue to emerge but have yet to produce the more-feared outcomes. |
| ● | With the pace of central bank tightening expected to dramatically downshift in the quarters ahead, and given PGIM Fixed Income’s expectation for the US 10-year Treasury yield to trade in its current range, interest rate volatility is likely to continue to decline. |
*This strategy and performance overview, which discusses what strategies or holdings (including derivatives, if applicable) affected the Fund’s performance, is compiled based on how the Fund performed relative to the Fund’s benchmark index and is viewed for performance attribution purposes at the aggregate Fund level, which in most instances
27
PGIM TIPS Fund
Strategy and Performance Overview* (continued)
will not directly correlate to the amounts disclosed in the Statement of Operations which conform to US generally accepted accounting principles.
28 Visit our website at pgim.com/investments
PGIM Quant Solutions Commodity Strategies Fund
Strategy and Performance Overview*
How did the Fund perform?
The PGIM Quant Solutions Commodity Strategies Fund’s Class R6 shares returned -10.42% in the 12-month reporting period that ended July 31, 2023, underperforming the -7.88% return of the Bloomberg Commodity Index (the Index).
What were the market conditions?
For the reporting period, commodity prices generally declined, undercutting some of the gains realized in the initial, post-COVID-19, high inflation period as prices normalized to a degree, particularly in the energy sector. Carry from roll yields remained high compared to recent history at over 6% for the year. Agricultural commodities and industrial metals produced mixed returns, with precious metals gaining for the period.
What worked?
The Fund benefited from underweight positions relative to the Index in coffee and wheat.
What didn’t work?
Positions in livestock detracted most from the Fund’s performance, relative to the Index, for the period. Cash management was also a drag on performance.
Did the Fund hold derivatives?
The Fund primarily invests in listed, exchange-traded commodities futures contracts. These futures are a form of derivatives based on the underlying price of a specific commodity. Since the Fund is invested primarily in these derivatives, its performance during the reporting period is driven by derivatives.
Current outlook
As of the end of the period, the Fund held overweight positions relative to the Index in the energy, grain, and soft commodity sectors, and underweight positions in precious metals, industrial metals, and livestock. The largest individual active positions in the Fund were an overweight exposure to soybean oil and an underweight exposure to aluminum.
*This strategy and performance overview, which discusses what strategies or holdings (including derivatives, if applicable) affected the Fund’s performance, is compiled based on how the Fund performed relative to the Fund’s benchmark index and is viewed for performance attribution purposes at the aggregate Fund level, which in most instances will not directly correlate to the amounts disclosed in the Statement of Operations which conform to US generally accepted accounting principles.
29
PGIM Quant Solutions Mid-Cap Core Fund
Strategy and Performance Overview*
How did the Fund perform?
The PGIM Quant Solutions Mid-Cap Core Fund’s Class R6 shares returned 11.78% in the 12-month reporting period that ended July 31, 2023, outperforming the 10.47% return of the S&P MidCap 400 Index (the Index).
What were the market conditions?
| ● | US equity markets finished 2022 firmly in negative territory. The year was characterized by heightened volatility stemming from rising inflation and the corresponding interest rate hikes implemented by the US Federal Reserve (Fed). |
| ● | US equities reversed course in 2023, led higher by mega-cap, technology-related stocks. Inflationary pressures appeared to be easing, indicating that the Fed’s ongoing rate hike cycle might soon end. |
What worked?
| ● | The Fund is comprised of a diversified portfolio of stocks that PGIM Quant Solutions identifies as attractive using a proprietary quantitative model. The model evaluates stocks based on quality, earnings expectations, and relative-value metrics. The emphasis on these characteristics varies based on the growth rate of the company under evaluation. |
| ● | Relative to the Index, overweighting companies that were inexpensive with positive growth outlooks, while underweighting those that were expensive with negative growth outlooks, contributed positively to the Fund’s performance over the reporting period. |
| ● | The Fund delivered strong relative performance in the materials sector. |
What didn’t work?
The Fund underperformed the Index in the utilities sector. Within this sector, companies that were cheap relative to peers, which PGIM Quant Solutions favored, underperformed those that were expensive relative to peers.
Did the Fund hold derivatives?
The Fund did not hold derivatives during the reporting period. The Fund did, however, hold exchange-traded funds that track the Index. PGIM Quant Solutions uses these instruments primarily to manage daily cash flows and provide liquidity, but not as a means of adding to performance. Subsequently, the effect on performance was minimal.
Current outlook
It is difficult at this point to predict whether prolonged inflation and the corresponding Fed rate hike cycle will result in a recession. Should a recession materialize, PGIM Quant Solutions’ return drivers that focus on safety should continue their strong year-to-date performance. Should a recession be avoided, cyclicals should outperform, benefiting PGIM Quant Solutions’ valuation measures. Therefore, PGIM Quant Solutions
30 Visit our website at pgim.com/investments
believes that the Fund’s core portfolios are properly positioned for the current market environment.
*This strategy and performance overview, which discusses what strategies or holdings (including derivatives, if applicable) affected the Fund’s performance, is compiled based on how the Fund performed relative to the Fund’s benchmark index and is viewed for performance attribution purposes at the aggregate Fund level, which in most instances will not directly correlate to the amounts disclosed in the Statement of Operations which conform to US generally accepted accounting principles.
31
PGIM Quant Solutions US Broad Market Index Fund
Strategy and Performance Overview*
How did the Fund perform?
The PGIM Quant Solutions US Broad Market Index Fund’s Class R6 shares returned 12.59% in the 12-month reporting period that ended July 31, 2022, underperforming the 12.68% return of the S&P 1500 Composite Index (the Index).
What were the market conditions?
| ● | The summer of 2022 saw US inflation peak at levels last seen in the early 1980s. Markets continued to see elevated volatility amid the backdrop of an aggressive US Federal Reserve (Fed) hiking rates to get inflation under control. Forward earnings estimates began rapidly declining over the course of the year in the face of ever higher interest rates and fears of a potential recession. Markets bottomed in early October before recovering and posting the only positive quarter of the year in the fourth quarter of 2022. |
| ● | Despite recession concerns entering 2023, economic data remained resilient with unemployment near historic lows and inflation showing signs of cooling off. However, not all was sanguine, as the effects of higher rates became evident in early March when a small number of domestic banks collapsed. Nevertheless, markets surged in the first half of the year thanks to stabilizing earnings forecasts, a tailwind from optimism related to developments in artificial intelligence (AI), and a firming belief that the Fed could indeed engineer a soft landing. |
What worked?
| ● | The Fund’s performance closely tracked the Index’s performance over the period. |
| ● | The Fund held all stocks included in the Index in approximately the same proportions. |
Did the Fund hold derivatives?
The Fund held S&P 500, S&P 400, and Russell 2000 E-Mini stock index futures, a form of derivatives, to maintain exposure to equities and provide portfolio liquidity. Futures had minimal impact on performance over the period.
*This strategy and performance overview, which discusses what strategies or holdings (including derivatives, if applicable) affected the Fund’s performance, is compiled based on how the Fund performed relative to the Fund’s benchmark index and is viewed for performance attribution purposes at the aggregate Fund level, which in most instances will not directly correlate to the amounts disclosed in the Statement of Operations which conform to US generally accepted accounting principles.
32 Visit our website at pgim.com/investments
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemptions, as applicable, and (2) ongoing costs, including management fees, distribution, and other Fund expenses, as applicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 held through the six-month period ended July 31, 2023. The example is for illustrative purposes only; you should consult the Funds’ Prospectus for information on initial and subsequent minimum investment requirements.
Actual Expenses
The first line in the tables below provides information about actual account values and actual expenses. You may use the information on this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line in the tables below provides information about hypothetical account values and hypothetical expenses based on a Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not a Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in a Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads). Therefore, the second line in each table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| PGIM Jennison Small-Cap Core Equity Fund |
Beginning Account Value February 1, 2023 |
Ending Account Value July 31, 2023 |
Annualized Expense |
Expenses Paid During the Six-Month Period* | ||||||
| Class R6 |
Actual | $1,000.00 | $1,016.80 | 0.96% | $4.80 | |||||
| Hypothetical | $1,000.00 | $1,020.03 | 0.96% | $4.81 | ||||||
33
Fees and Expenses (continued)
| PGIM Core Conservative Bond Fund |
Beginning Account Value February 1, 2023 |
Ending Account Value July 31, 2023 |
Annualized Expense |
Expenses Paid During the Six-Month Period* | ||||||
| Class R6 |
Actual | $1,000.00 | $ 987.20 | 0.51% | $2.51 | |||||
| Hypothetical | $1,000.00 | $1,022.27 | 0.51% | $2.56 | ||||||
| PGIM TIPS Fund | Beginning Account Value February 1, 2023 |
Ending Account Value July 31, 2023 |
Annualized Expense |
Expenses Paid During the Six-Month Period* | ||||||
| Class R6 |
Actual | $1,000.00 | $ 999.80 | 0.43% | $2.13 | |||||
| Hypothetical | $1,000.00 | $1,022.66 | 0.43% | $2.16 | ||||||
|
| ||||||||||
| PGIM Quant Solutions Commodity Strategies Fund |
Beginning Account Value February 1, 2023 |
Ending Account Value July 31, 2023 |
Annualized Expense |
Expenses Paid During the Six-Month Period* | ||||||
| Class Z |
Actual | $1,000.00 | $ 970.50 | 0.72% | $3.52 | |||||
| Hypothetical | $1,000.00 | $1,021.22 | 0.72% | $3.61 | ||||||
| Class R6 |
Actual | $1,000.00 | $ 969.10 | 0.78% | $3.81 | |||||
| Hypothetical | $1,000.00 | $1,020.93 | 0.78% | $3.91 | ||||||
| PGIM Quant Solutions Mid-Cap Core Fund |
Beginning Account Value February 1, 2023 |
Ending Account Value July 31, 2023 |
Annualized Expense |
Expenses Paid During the Six-Month Period* | ||||||
| Class R6 |
Actual | $1,000.00 | $1,039.40 | 0.82% | $4.15 | |||||
| Hypothetical | $1,000.00 | $1,020.73 | 0.82% | $4.11 | ||||||
| PGIM Quant Solutions US Broad Market Index Fund |
Beginning Account Value February 1, 2023 |
Ending Account Value July 31, 2023 |
Annualized Expense |
Expenses Paid During the Six-Month Period* | ||||||
| Class R6 |
Actual | $1,000.00 | $1,125.20 | 0.21% | $1.11 | |||||
|
Hypothetical |
$1,000.00 | $1,023.75 | 0.21% | $1.05 | ||||||
*Fund expenses (net of fee waivers or subsidies, if any) are equal to the annualized expense ratio (provided in the table), multiplied by the average account value over the period, multiplied by the 181 days in the six-month period ended July 31, 2023, and divided by the 365 days in the Fund’s fiscal year ended July 31, 2023 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
34 Visit our website at pgim.com/investments
Glossary
The following abbreviations are used in the Funds’ descriptions:
USD—US Dollar
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.
ADR—American Depositary Receipt
BABs—Build America Bonds
CLO—Collateralized Loan Obligation
ETF—Exchange-Traded Fund
GMTN—Global Medium Term Note
LIBOR—London Interbank Offered Rate
LME—London Metal Exchange
LP—Limited Partnership
MSC—Morgan Stanley & Co. LLC
MTN—Medium Term Note
PRI—Primary Rate Interface
RBOB—Reformulated Gasoline Blendstock for Oxygen Blending
REITs—Real Estate Investment Trust
S&P—Standard & Poor’s
SOFR—Secured Overnight Financing Rate
SPDR—Standard & Poor’s Depositary Receipts
TIPS—Treasury Inflation-Protected Securities
UBS—UBS Securities LLC
ULSD—Ultra-Low Sulfur Diesel
WTI—West Texas Intermediate
35
PGIM Jennison Small-Cap Core Equity Fund
as of July 31, 2023
| Description | Shares | Value | ||||||
| LONG-TERM INVESTMENTS 97.2% |
||||||||
| COMMON STOCKS |
||||||||
| Aerospace & Defense 1.1% |
||||||||
| Hexcel Corp. |
1,514 | $ | 107,010 | |||||
| Automobile Components 0.4% |
||||||||
| Dorman Products, Inc.* |
464 | 39,296 | ||||||
| Banks 7.5% |
||||||||
| Atlantic Union Bankshares Corp. |
732 | 23,409 | ||||||
| BankUnited, Inc. |
1,364 | 40,702 | ||||||
| Brookline Bancorp, Inc. |
6,223 | 66,462 | ||||||
| Eastern Bankshares, Inc. |
5,427 | 76,629 | ||||||
| Enterprise Financial Services Corp. |
896 | 36,736 | ||||||
| First Bancorp |
1,304 | 43,136 | ||||||
| First Interstate BancSystem, Inc. (Class A Stock) |
2,468 | 70,906 | ||||||
| Hilltop Holdings, Inc. |
1,831 | 56,633 | ||||||
| Pinnacle Financial Partners, Inc. |
1,875 | 142,312 | ||||||
| Western Alliance Bancorp |
843 | 43,794 | ||||||
| Wintrust Financial Corp. |
928 | 78,286 | ||||||
| WSFS Financial Corp. |
1,228 | 53,725 | ||||||
|
|
|
|||||||
| 732,730 | ||||||||
| Biotechnology 2.7% |
||||||||
| Arcutis Biotherapeutics, Inc.* |
3,491 | 38,087 | ||||||
| Avid Bioservices, Inc.* |
5,190 | 65,705 | ||||||
| Celldex Therapeutics, Inc.* |
1,524 | 53,889 | ||||||
| Syndax Pharmaceuticals, Inc.* |
2,439 | 51,999 | ||||||
| Vaxcyte, Inc.* |
1,210 | 58,153 | ||||||
|
|
|
|||||||
| 267,833 | ||||||||
| Building Products 1.5% |
||||||||
| Hayward Holdings, Inc.* |
6,821 | 91,129 | ||||||
| Zurn Elkay Water Solutions Corp. |
1,841 | 56,040 | ||||||
|
|
|
|||||||
| 147,169 | ||||||||
| Capital Markets 3.1% |
||||||||
| AssetMark Financial Holdings, Inc.* |
1,658 | 49,574 | ||||||
| Bridge Investment Group Holdings, Inc. (Class A Stock) |
4,384 | 54,844 | ||||||
| Brightsphere Investment Group, Inc. |
1,428 | 30,388 | ||||||
| Hamilton Lane, Inc. (Class A Stock) |
733 | 64,819 | ||||||
See Notes to Financial Statements.
36
PGIM Jennison Small-Cap Core Equity Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Capital Markets (cont’d.) |
||||||||
| Houlihan Lokey, Inc. |
845 | $ | 84,373 | |||||
| Moelis & Co. (Class A Stock) |
382 | 18,653 | ||||||
|
|
|
|||||||
| 302,651 | ||||||||
| Chemicals 1.0% |
||||||||
| Avient Corp. |
2,351 | 95,286 | ||||||
| Commercial Services & Supplies 2.4% |
||||||||
| ACV Auctions, Inc. (Class A Stock)* |
5,674 | 99,238 | ||||||
| Casella Waste Systems, Inc. (Class A Stock)* |
1,299 | 104,816 | ||||||
| VSE Corp. |
554 | 29,778 | ||||||
|
|
|
|||||||
| 233,832 | ||||||||
| Construction & Engineering 1.9% |
||||||||
| Concrete Pumping Holdings, Inc.* |
6,782 | 54,731 | ||||||
| Construction Partners, Inc. (Class A Stock)* |
2,163 | 63,592 | ||||||
| Great Lakes Dredge & Dock Corp.* |
8,072 | 67,805 | ||||||
|
|
|
|||||||
| 186,128 | ||||||||
| Construction Materials 1.0% |
||||||||
| Summit Materials, Inc. (Class A Stock)* |
2,616 | 94,647 | ||||||
| Consumer Staples Distribution & Retail 1.1% |
||||||||
| Chefs’ Warehouse, Inc. (The)* |
2,838 | 103,133 | ||||||
| Performance Food Group Co.* |
8 | 478 | ||||||
|
|
|
|||||||
| 103,611 | ||||||||
| Diversified REITs 0.1% |
||||||||
| American Assets Trust, Inc. |
607 | 13,658 | ||||||
| Diversified Telecommunication Services 0.9% |
||||||||
| Cogent Communications Holdings, Inc. |
1,413 | 86,532 | ||||||
| Electric Utilities 0.4% |
||||||||
| PNM Resources, Inc. |
931 | 41,727 | ||||||
| Electronic Equipment, Instruments & Components 1.1% |
||||||||
| Littelfuse, Inc. |
358 | 109,047 | ||||||
See Notes to Financial Statements.
37
PGIM Jennison Small-Cap Core Equity Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Energy Equipment & Services 3.3% |
||||||||
| Cactus, Inc. (Class A Stock) |
3,585 | $ | 182,046 | |||||
| Patterson-UTI Energy, Inc. |
1,316 | 20,846 | ||||||
| Weatherford International PLC* |
1,451 | 120,578 | ||||||
|
|
|
|||||||
| 323,470 | ||||||||
| Financial Services 1.4% |
||||||||
| Shift4 Payments, Inc. (Class A Stock)* |
2,025 | 139,705 | ||||||
| Food Products 2.5% |
||||||||
| Adecoagro SA (Brazil) |
7,341 | 81,485 | ||||||
| Freshpet, Inc.* |
833 | 61,259 | ||||||
| Utz Brands, Inc. |
6,253 | 104,738 | ||||||
|
|
|
|||||||
| 247,482 | ||||||||
| Health Care Equipment & Supplies 4.9% |
||||||||
| CONMED Corp. |
971 | 117,539 | ||||||
| Inari Medical, Inc.* |
1,426 | 81,382 | ||||||
| Inspire Medical Systems, Inc.* |
270 | 77,709 | ||||||
| Integra LifeSciences Holdings Corp.* |
1,236 | 56,201 | ||||||
| Outset Medical, Inc.* |
2,524 | 51,944 | ||||||
| Silk Road Medical, Inc.* |
1,821 | 41,591 | ||||||
| Tandem Diabetes Care, Inc.* |
1,603 | 55,977 | ||||||
|
|
|
|||||||
| 482,343 | ||||||||
| Health Care Providers & Services 3.2% |
||||||||
| Acadia Healthcare Co., Inc.* |
1,277 | 100,921 | ||||||
| Guardant Health, Inc.* |
1,563 | 60,988 | ||||||
| LifeStance Health Group, Inc.* |
5,136 | 48,227 | ||||||
| Progyny, Inc.* |
2,484 | 103,732 | ||||||
|
|
|
|||||||
| 313,868 | ||||||||
| Health Care Technology 0.9% |
||||||||
| Phreesia, Inc.* |
2,861 | 90,751 | ||||||
| Hotel & Resort REITs 0.7% |
||||||||
| Summit Hotel Properties, Inc. |
11,152 | 71,819 | ||||||
See Notes to Financial Statements.
38
PGIM Jennison Small-Cap Core Equity Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Hotels, Restaurants & Leisure 3.4% |
||||||||
| Bloomin’ Brands, Inc. |
5,112 | $ | 137,360 | |||||
| Cava Group, Inc.* |
712 | 40,662 | ||||||
| Golden Entertainment, Inc.* |
1,095 | 46,362 | ||||||
| Wingstop, Inc. |
648 | 109,240 | ||||||
|
|
|
|||||||
| 333,624 | ||||||||
| Household Durables 1.6% |
||||||||
| Century Communities, Inc. |
1,981 | 152,973 | ||||||
| Independent Power & Renewable Electricity Producers 1.0% |
||||||||
| NextEra Energy Partners LP |
1,863 | 101,440 | ||||||
| Industrial REITs 1.1% |
||||||||
| Plymouth Industrial REIT, Inc. |
4,853 | 110,503 | ||||||
| Insurance 2.5% |
||||||||
| Axis Capital Holdings Ltd. |
2,806 | 154,667 | ||||||
| James River Group Holdings Ltd. |
2,452 | 45,337 | ||||||
| Skyward Specialty Insurance Group, Inc.* |
1,874 | 44,395 | ||||||
|
|
|
|||||||
| 244,399 | ||||||||
| IT Services 0.9% |
||||||||
| Grid Dynamics Holdings, Inc.* |
8,708 | 90,737 | ||||||
| Leisure Products 1.1% |
||||||||
| Brunswick Corp. |
1,296 | 111,858 | ||||||
| Life Sciences Tools & Services 0.9% |
||||||||
| BioLife Solutions, Inc.* |
2,096 | 41,669 | ||||||
| Olink Holding AB (Sweden), ADR* |
2,453 | 46,607 | ||||||
|
|
|
|||||||
| 88,276 | ||||||||
| Machinery 4.2% |
||||||||
| Energy Recovery, Inc.* |
2,416 | 73,639 | ||||||
| Enerpac Tool Group Corp. |
3,944 | 108,381 | ||||||
| EnPro Industries, Inc. |
406 | 56,345 | ||||||
| Trinity Industries, Inc. |
6,845 | 179,476 | ||||||
|
|
|
|||||||
| 417,841 | ||||||||
See Notes to Financial Statements.
39
PGIM Jennison Small-Cap Core Equity Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Marine Transportation 1.8% |
||||||||
| Kirby Corp.* |
2,211 | $ | 180,152 | |||||
| Metals & Mining 3.6% |
||||||||
| B2Gold Corp. (Canada) |
15,830 | 55,246 | ||||||
| Constellium SE* |
8,542 | 163,067 | ||||||
| ERO Copper Corp. (Brazil)* |
3,529 | 84,802 | ||||||
| Materion Corp. |
422 | 50,277 | ||||||
|
|
|
|||||||
| 353,392 | ||||||||
| Mortgage Real Estate Investment Trusts (REITs) 1.1% |
||||||||
| Ladder Capital Corp. |
9,535 | 104,790 | ||||||
| Office REITs 0.3% |
||||||||
| Cousins Properties, Inc. |
1,038 | 25,358 | ||||||
| Oil, Gas & Consumable Fuels 2.6% |
||||||||
| Chord Energy Corp. |
1,246 | 195,423 | ||||||
| PDC Energy, Inc. |
816 | 61,926 | ||||||
|
|
|
|||||||
| 257,349 | ||||||||
| Passenger Airlines 0.8% |
||||||||
| Sun Country Airlines Holdings, Inc.* |
3,431 | 73,972 | ||||||
| Personal Care Products 2.5% |
||||||||
| elf Beauty, Inc.* |
2,067 | 241,260 | ||||||
| Pharmaceuticals 2.6% |
||||||||
| Pacira BioSciences, Inc.* |
1,721 | 62,558 | ||||||
| Prestige Consumer Healthcare, Inc.* |
1,528 | 99,641 | ||||||
| Revance Therapeutics, Inc.* |
2,729 | 64,486 | ||||||
| Verona Pharma PLC (United Kingdom), ADR* |
1,207 | 26,663 | ||||||
|
|
|
|||||||
| 253,348 | ||||||||
| Professional Services 3.0% |
||||||||
| ASGN, Inc.* |
416 | 31,749 | ||||||
| HireRight Holdings Corp.* |
3,366 | 36,050 | ||||||
See Notes to Financial Statements.
40
PGIM Jennison Small-Cap Core Equity Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Professional Services (cont’d.) |
||||||||
| Huron Consulting Group, Inc.* |
1,341 | $ | 126,818 | |||||
| Paycor HCM, Inc.* |
3,771 | 101,289 | ||||||
|
|
|
|||||||
| 295,906 | ||||||||
| Real Estate Management & Development 0.3% |
||||||||
| Marcus & Millichap, Inc. |
837 | 30,701 | ||||||
| Residential REITs 2.0% |
||||||||
| Independence Realty Trust, Inc. |
6,371 | 108,562 | ||||||
| UMH Properties, Inc. |
5,078 | 84,549 | ||||||
|
|
|
|||||||
| 193,111 | ||||||||
| Retail REITs 0.7% |
||||||||
| Retail Opportunity Investments Corp. |
4,937 | 72,722 | ||||||
| Semiconductors & Semiconductor Equipment 3.8% |
||||||||
| MACOM Technology Solutions Holdings, Inc.* |
1,707 | 119,353 | ||||||
| MaxLinear, Inc.* |
1,477 | 36,438 | ||||||
| SiTime Corp.* |
401 | 51,733 | ||||||
| Tower Semiconductor Ltd. (Israel)* |
3,307 | 124,839 | ||||||
| Universal Display Corp. |
312 | 45,515 | ||||||
|
|
|
|||||||
| 377,878 | ||||||||
| Software 7.0% |
||||||||
| Clear Secure, Inc. (Class A Stock) |
3,488 | 82,700 | ||||||
| Descartes Systems Group, Inc. (The) (Canada)* |
587 | 45,710 | ||||||
| EngageSmart, Inc.* |
4,018 | 76,181 | ||||||
| Intapp, Inc.* |
2,032 | 83,434 | ||||||
| PagerDuty, Inc.* |
2,931 | 75,972 | ||||||
| Q2 Holdings, Inc.* |
2,240 | 79,453 | ||||||
| Riskified Ltd. (Class A Stock)* |
1,584 | 7,651 | ||||||
| Sprout Social, Inc. (Class A Stock)* |
2,742 | 156,678 | ||||||
| Varonis Systems, Inc.* |
2,905 | 83,373 | ||||||
|
|
|
|||||||
| 691,152 | ||||||||
| Specialized REITs 0.9% |
||||||||
| National Storage Affiliates Trust |
2,726 | 92,112 | ||||||
See Notes to Financial Statements.
41
PGIM Jennison Small-Cap Core Equity Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Specialty Retail 1.6% |
||||||||
| Boot Barn Holdings, Inc.* |
1,077 | $ | 101,130 | |||||
| Citi Trends, Inc.* |
895 | 16,871 | ||||||
| Foot Locker, Inc. |
1,582 | 42,508 | ||||||
|
|
|
|||||||
| 160,509 | ||||||||
| Textiles, Apparel & Luxury Goods 1.2% |
||||||||
| Kontoor Brands, Inc. |
2,863 | 121,277 | ||||||
| Trading Companies & Distributors 1.6% |
||||||||
| Core & Main, Inc. (Class A Stock)* |
1,828 | 57,783 | ||||||
| Herc Holdings, Inc. |
748 | 100,105 | ||||||
|
|
|
|||||||
| 157,888 | ||||||||
|
|
|
|||||||
| TOTAL LONG-TERM INVESTMENTS |
9,565,123 | |||||||
|
|
|
|||||||
| SHORT-TERM INVESTMENT 3.6% |
||||||||
| AFFILIATED MUTUAL FUND |
||||||||
| PGIM Core Government Money Market Fund |
353,977 | 353,977 | ||||||
|
|
|
|||||||
| TOTAL INVESTMENTS 100.8% |
9,919,100 | |||||||
| Liabilities in excess of other assets (0.8)% |
(81,961 | ) | ||||||
|
|
|
|||||||
| NET ASSETS 100.0% |
$ | 9,837,139 | ||||||
|
|
|
|||||||
See the Glossary for a list of the abbreviation(s) used in the annual report.
| * | Non-income producing security. |
| (wi) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Government Money Market Fund and PGIM Institutional Money Market Fund, if applicable. |
Fair Value Measurements:
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.
Level 1—unadjusted quoted prices generally in active markets for identical securities.
See Notes to Financial Statements.
42
PGIM Jennison Small-Cap Core Equity Fund
Schedule of Investments (continued)
as of July 31, 2023
Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
The following is a summary of the inputs used as of July 31, 2023 in valuing such portfolio securities:
| Level 1 | Level 2 |
Level 3 | ||||||||||||||||||||
| Investments in Securities |
||||||||||||||||||||||
| Assets |
||||||||||||||||||||||
| Long-Term Investments |
||||||||||||||||||||||
| Common Stocks |
||||||||||||||||||||||
| Aerospace & Defense |
$ | 107,010 | $ | — | $ | — | ||||||||||||||||
| Automobile Components |
39,296 | — | — | |||||||||||||||||||
| Banks |
732,730 | — | — | |||||||||||||||||||
| Biotechnology |
267,833 | — | — | |||||||||||||||||||
| Building Products |
147,169 | — | — | |||||||||||||||||||
| Capital Markets |
302,651 | — | — | |||||||||||||||||||
| Chemicals |
95,286 | — | — | |||||||||||||||||||
| Commercial Services & Supplies |
233,832 | — | — | |||||||||||||||||||
| Construction & Engineering |
186,128 | — | — | |||||||||||||||||||
| Construction Materials |
94,647 | — | — | |||||||||||||||||||
| Consumer Staples Distribution & Retail |
103,611 | — | — | |||||||||||||||||||
| Diversified REITs |
13,658 | — | — | |||||||||||||||||||
| Diversified Telecommunication Services |
86,532 | — | — | |||||||||||||||||||
| Electric Utilities |
41,727 | — | — | |||||||||||||||||||
| Electronic Equipment, Instruments & Components |
109,047 | — | — | |||||||||||||||||||
| Energy Equipment & Services |
323,470 | — | — | |||||||||||||||||||
| Financial Services |
139,705 | — | — | |||||||||||||||||||
| Food Products |
247,482 | — | — | |||||||||||||||||||
| Health Care Equipment & Supplies |
482,343 | — | — | |||||||||||||||||||
| Health Care Providers & Services |
313,868 | — | — | |||||||||||||||||||
| Health Care Technology |
90,751 | — | — | |||||||||||||||||||
| Hotel & Resort REITs |
71,819 | — | — | |||||||||||||||||||
| Hotels, Restaurants & Leisure |
333,624 | — | — | |||||||||||||||||||
| Household Durables |
152,973 | — | — | |||||||||||||||||||
| Independent Power & Renewable Electricity Producers |
101,440 | — | — | |||||||||||||||||||
| Industrial REITs |
110,503 | — | — | |||||||||||||||||||
| Insurance |
244,399 | — | — | |||||||||||||||||||
| IT Services |
90,737 | — | — | |||||||||||||||||||
| Leisure Products |
111,858 | — | — | |||||||||||||||||||
| Life Sciences Tools & Services |
88,276 | — | — | |||||||||||||||||||
| Machinery |
417,841 | — | — | |||||||||||||||||||
| Marine Transportation |
180,152 | — | — | |||||||||||||||||||
| Metals & Mining |
353,392 | — | — | |||||||||||||||||||
| Mortgage Real Estate Investment Trusts (REITs) |
104,790 | — | — | |||||||||||||||||||
| Office REITs |
25,358 | — | — | |||||||||||||||||||
| Oil, Gas & Consumable Fuels |
257,349 | — | — | |||||||||||||||||||
| Passenger Airlines |
73,972 | — | — | |||||||||||||||||||
See Notes to Financial Statements.
43
PGIM Jennison Small-Cap Core Equity Fund
Schedule of Investments (continued)
as of July 31, 2023
| Level 1 | Level 2 |
Level 3 | ||||||||||||||||||||
| Investments in Securities (continued) |
||||||||||||||||||||||
| Assets (continued) |
||||||||||||||||||||||
| Long-Term Investments (continued) |
||||||||||||||||||||||
| Common Stocks (continued) |
||||||||||||||||||||||
| Personal Care Products |
$ | 241,260 | $— | $— | ||||||||||||||||||
| Pharmaceuticals |
253,348 | — | — | |||||||||||||||||||
| Professional Services |
295,906 | — | — | |||||||||||||||||||
| Real Estate Management & Development |
30,701 | — | — | |||||||||||||||||||
| Residential REITs |
193,111 | — | — | |||||||||||||||||||
| Retail REITs |
72,722 | — | — | |||||||||||||||||||
| Semiconductors & Semiconductor Equipment |
377,878 | — | — | |||||||||||||||||||
| Software |
691,152 | — | — | |||||||||||||||||||
| Specialized REITs |
92,112 | — | — | |||||||||||||||||||
| Specialty Retail |
160,509 | — | — | |||||||||||||||||||
| Textiles, Apparel & Luxury Goods |
121,277 | — | — | |||||||||||||||||||
| Trading Companies & Distributors |
157,888 | — | — | |||||||||||||||||||
| Short-Term Investment |
||||||||||||||||||||||
| Affiliated Mutual Fund |
353,977 | — | — | |||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||
| Total |
$ | 9,919,100 | $— | $— | ||||||||||||||||||
|
|
|
|
| |||||||||||||||||||
Industry Classification:
The industry classification of investments and liabilities in excess of other assets shown as a percentage of net assets as of July 31, 2023 were as follows:
| Banks |
7.5 | % | ||
| Software |
7.0 | |||
| Health Care Equipment & Supplies |
4.9 | |||
| Machinery |
4.2 | |||
| Semiconductors & Semiconductor Equipment |
3.8 | |||
| Affiliated Mutual Fund |
3.6 | |||
| Metals & Mining |
3.6 | |||
| Hotels, Restaurants & Leisure |
3.4 | |||
| Energy Equipment & Services |
3.3 | |||
| Health Care Providers & Services |
3.2 | |||
| Capital Markets |
3.1 | |||
| Professional Services |
3.0 | |||
| Biotechnology |
2.7 | |||
| Oil, Gas & Consumable Fuels |
2.6 | |||
| Pharmaceuticals |
2.6 | |||
| Food Products |
2.5 | |||
| Insurance |
2.5 | |||
| Personal Care Products |
2.5 | |||
| Commercial Services & Supplies |
2.4 |
| Residential REITs |
2.0 | % | ||
| Construction & Engineering |
1.9 | |||
| Marine Transportation |
1.8 | |||
| Specialty Retail |
1.6 | |||
| Trading Companies & Distributors |
1.6 | |||
| Household Durables |
1.6 | |||
| Building Products |
1.5 | |||
| Financial Services |
1.4 | |||
| Textiles, Apparel & Luxury Goods |
1.2 | |||
| Leisure Products |
1.1 | |||
| Industrial REITs |
1.1 | |||
| Electronic Equipment, Instruments & Components |
1.1 | |||
| Aerospace & Defense |
1.1 | |||
| Mortgage Real Estate Investment Trusts (REITs) |
1.1 | |||
| Consumer Staples Distribution & Retail |
1.1 | |||
| Independent Power & Renewable Electricity Producers |
1.0 | |||
| Chemicals |
1.0 | |||
| Construction Materials |
1.0 |
See Notes to Financial Statements.
44
PGIM Jennison Small-Cap Core Equity Fund
Schedule of Investments (continued)
as of July 31, 2023
Industry Classification (continued):
| Specialized REITs |
0.9 | % | ||
| Health Care Technology |
0.9 | |||
| IT Services |
0.9 | |||
| Life Sciences Tools & Services |
0.9 | |||
| Diversified Telecommunication Services |
0.9 | |||
| Passenger Airlines |
0.8 | |||
| Retail REITs |
0.7 | |||
| Hotel & Resort REITs |
0.7 | |||
| Electric Utilities |
0.4 |
| Automobile Components |
0.4 | % | ||
| Real Estate Management & Development |
0.3 | |||
| Office REITs |
0.3 | |||
| Diversified REITs |
0.1 | |||
|
|
|
|||
| 100.8 | ||||
| Liabilities in excess of other assets |
(0.8 | ) | ||
|
|
|
|||
| 100.0 | % | |||
|
|
|
|||
See Notes to Financial Statements.
45
PGIM Jennison Small-Cap Core Equity Fund
Statement of Assets & Liabilities
as of July 31, 2023
| Assets |
||||
| Investments at value: |
||||
| Unaffiliated investments (cost $7,047,524) |
$ | 9,565,123 | ||
| Affiliated investments (cost $353,977) |
353,977 | |||
| Receivable for Fund shares sold |
29,993 | |||
| Receivable for investments sold |
9,451 | |||
| Prepaid expenses |
71 | |||
|
|
|
|||
| Total Assets |
9,958,615 | |||
|
|
|
|||
| Liabilities |
||||
| Payable for Fund shares purchased |
41,325 | |||
| Audit fee payable |
24,250 | |||
| Custodian and accounting fees payable |
18,439 | |||
| Payable for investments purchased |
18,390 | |||
| Professional fees payable |
5,823 | |||
| Shareholders’ reports fee payable |
5,059 | |||
| Accrued expenses and other liabilities |
4,620 | |||
| Management fee payable |
2,626 | |||
| Trustees’ fees payable |
827 | |||
| Affiliated transfer agent fee payable |
117 | |||
|
|
|
|||
| Total Liabilities |
121,476 | |||
|
|
|
|||
| Net Assets |
$ | 9,837,139 | ||
|
|
|
|||
| Net assets were comprised of: |
||||
| Paid-in capital |
$ | 8,006,671 | ||
| Total distributable earnings (loss) |
1,830,468 | |||
|
|
|
|||
| Net assets, July 31, 2023 |
$ | 9,837,139 | ||
|
|
|
|||
| Class R6 |
||||
| Net asset value, offering price and redemption price per share, ($9,837,139 ÷ 739,970 shares of beneficial interest issued and outstanding) |
$ | 13.29 | ||
|
|
|
|||
See Notes to Financial Statements.
46
PGIM Jennison Small-Cap Core Equity Fund
Statement of Operations
Year Ended July 31, 2023
| Net Investment Income (Loss) |
||||
| Income |
||||
| Unaffiliated dividend income (net of $1,860 foreign withholding tax) |
$ | 348,764 | ||
| Affiliated dividend income |
17,034 | |||
| Income from securities lending, net (including affiliated income of $904) |
1,175 | |||
|
|
|
|||
| Total income |
366,973 | |||
|
|
|
|||
| Expenses |
||||
| Management fee |
207,004 | |||
| Custodian and accounting fees |
34,892 | |||
| Professional fees |
32,992 | |||
| Audit fee |
24,250 | |||
| Shareholders’ reports |
13,990 | |||
| Trustees’ fees |
9,864 | |||
| Fund data services |
9,772 | |||
| Registration fees |
2,173 | |||
| Transfer agent’s fees and expenses (including affiliated expense of $746) |
970 | |||
| Miscellaneous |
9,259 | |||
|
|
|
|||
| Total expenses |
345,166 | |||
| Less: Fee waiver and/or expense reimbursement |
(81,718 | ) | ||
|
|
|
|||
| Net expenses |
263,448 | |||
|
|
|
|||
| Net investment income (loss) |
103,525 | |||
|
|
|
|||
| Realized And Unrealized Gain (Loss) On Investments |
||||
| Net realized gain (loss) on: |
||||
| Investment transactions (including affiliated of $66) |
608,894 | |||
| In-kind redemptions(1) |
1,644,775 | |||
| Net change in unrealized appreciation (depreciation) on investments (including affiliated of $(5)) |
(257,543 | ) | ||
|
|
|
|||
| Net gain (loss) on investment transactions |
1,996,126 | |||
|
|
|
|||
| Net Increase (Decrease) In Net Assets Resulting From Operations |
$ | 2,099,651 | ||
|
|
|
|||
(1) See Note 9, Purchases & Redemption In-kind, in Notes to Financial Statements
See Notes to Financial Statements.
47
PGIM Jennison Small-Cap Core Equity Fund
Statements of Changes in Net Assets
| Year Ended July 31, |
||||||||
|
|
|
|||||||
| 2023 | 2022 | |||||||
| Increase (Decrease) in Net Assets |
||||||||
| Operations |
||||||||
| Net investment income (loss) |
$ | 103,525 | $ | 37,372 | ||||
| Net realized gain (loss) on investment transactions |
2,253,669 | (212,325 | ) | |||||
| Net change in unrealized appreciation (depreciation) on investments |
(257,543 | ) | (7,143,004 | ) | ||||
|
|
|
|
|
|||||
| Net increase (decrease) in net assets resulting from operations |
2,099,651 | (7,317,957 | ) | |||||
|
|
|
|
|
|||||
| Dividends and Distributions |
||||||||
| Distributions from distributable earnings |
||||||||
| Class R6 |
(107,054 | ) | (6,812,364 | ) | ||||
| Tax return of capital distributions |
||||||||
| Class R6 |
(37,626 | ) | — | |||||
|
|
|
|
|
|||||
| Total dividends and distributions |
(144,680 | ) | (6,812,364 | ) | ||||
|
|
|
|
|
|||||
| Fund share transactions |
||||||||
| Net proceeds from shares sold (208,270 and 818,250 shares, respectively) |
2,545,201 | 12,157,522 | ||||||
| Net asset value of shares issued in reinvestment of dividends and distributions (12,047 and 454,158 shares, respectively) |
144,680 | 6,812,364 | ||||||
| Cost of shares purchased (1,895,538 and 543,115 shares, respectively) |
(24,457,311 | ) | (7,955,174 | ) | ||||
|
|
|
|
|
|||||
| Net increase (decrease) in net assets from Fund share transactions |
(21,767,430 | ) | 11,014,712 | |||||
|
|
|
|
|
|||||
| Total increase (decrease) |
(19,812,459 | ) | (3,115,609 | ) | ||||
| Net Assets: |
||||||||
| Beginning of year |
29,649,598 | 32,765,207 | ||||||
|
|
|
|
|
|||||
| End of year |
$ | 9,837,139 | $ | 29,649,598 | ||||
|
|
|
|
|
|||||
See Notes to Financial Statements.
48
PGIM Jennison Small-Cap Core Equity Fund
Financial Highlights
| Class R6 Shares | ||||||||||||||||||||
| Year Ended July 31, | ||||||||||||||||||||
| 2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
| Per Share Operating Performance(a): |
||||||||||||||||||||
| Net Asset Value, Beginning of Year |
$12.28 | $19.43 | $12.48 | $11.82 | $13.04 | |||||||||||||||
| Income (loss) from investment operations: |
||||||||||||||||||||
| Net investment income (loss) |
0.05 | 0.02 | (0.06 | ) | (- | )(b) | 0.01 | |||||||||||||
| Net realized and unrealized gain (loss) on investment transactions |
1.02 | (2.98 | ) | 7.65 | 0.66 | (0.53 | ) | |||||||||||||
| Total from investment operations |
1.07 | (2.96 | ) | 7.59 | 0.66 | (0.52 | ) | |||||||||||||
| Less Dividends and Distributions: |
||||||||||||||||||||
| Dividends from net investment income |
(0.04 | ) | - | - | - | (0.04 | ) | |||||||||||||
| Tax return of capital distributions |
(0.02 | ) | - | - | - | (0.01 | ) | |||||||||||||
| Distributions from net realized gains |
- | (4.19 | ) | (0.64 | ) | - | (0.65 | ) | ||||||||||||
| Total dividends and distributions |
(0.06 | ) | (4.19 | ) | (0.64 | ) | - | (0.70 | ) | |||||||||||
| Net asset value, end of year |
$13.29 | $12.28 | $19.43 | $12.48 | $11.82 | |||||||||||||||
| Total Return(c): |
8.77 | % | (19.13 | )% | 62.10 | % | 5.50 | % | (3.26 | )% | ||||||||||
| Ratios/Supplemental Data: |
||||||||||||||||||||
| Net assets, end of year (000) |
$ | 9,837 | $ | 29,650 | $ | 32,765 | $ | 21,439 | $ | 17,371 | ||||||||||
| Average net assets (000) |
$ | 27,601 | $ | 32,596 | $ | 28,667 | $ | 17,831 | $ | 16,167 | ||||||||||
| Ratios to average net assets(d): |
||||||||||||||||||||
| Expenses after waivers and/or expense reimbursement |
0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | ||||||||||
| Expenses before waivers and/or expense reimbursement |
1.25 | % | 1.15 | % | 1.19 | % | 1.52 | % | 1.64 | % | ||||||||||
| Net investment income (loss) |
0.38 | % | 0.11 | % | (0.39 | )% | (0.03 | )% | 0.07 | % | ||||||||||
| Portfolio turnover rate(e) |
40 | % | 49 | % | 67 | % | 54 | % | 36 | % | ||||||||||
| (a) | Calculated based on average shares outstanding during the year. |
| (b) | Amount rounds to zero. |
| (c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. |
| (d) | Does not include expenses of the underlying funds in which the Fund invests. |
| (e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
49
PGIM Core Conservative Bond Fund
Schedule of Investments
as of July 31, 2023
| Description | Interest Rate |
Maturity Date |
Principal Amount (000)# |
Value | ||||||||
| LONG-TERM INVESTMENTS 97.7% |
||||||||||||
| ASSET-BACKED SECURITY 0.2% |
||||||||||||
| Credit Cards |
||||||||||||
| Citibank Credit Card Issuance Trust, |
||||||||||||
| Series 2018-A07, Class A7 |
3.960% | 10/13/30 | 100 | $ | 95,469 | |||||||
|
|
|
|||||||||||
| COMMERCIAL MORTGAGE-BACKED SECURITIES 7.0% |
||||||||||||
| 37 Capital CLO, |
||||||||||||
| Series 2021-PF01, Class A4 |
2.253 | 11/15/54 | 100 | 79,689 | ||||||||
| BANK, |
||||||||||||
| Series 2020-BN29, Class A3 |
1.742 | 11/15/53 | 100 | 76,962 | ||||||||
| Barclays Commercial Mortgage Securities Trust, |
||||||||||||
| Series 2019-C04, Class A4 |
2.661 | 08/15/52 | 100 | 88,443 | ||||||||
| Benchmark Mortgage Trust, |
||||||||||||
| Series 2018-B03, Class A3 |
3.746 | 04/10/51 | 30 | 28,770 | ||||||||
| Series 2020-B19, Class A3 |
1.787 | 09/15/53 | 175 | 152,111 | ||||||||
| Series 2020-B21, Class A4 |
1.704 | 12/17/53 | 100 | 79,496 | ||||||||
| Series 2021-B23, Class A4A1 |
1.823 | 02/15/54 | 200 | 153,878 | ||||||||
| Series 2021-B30, Class A4 |
2.329 | 11/15/54 | 150 | 120,223 | ||||||||
| BMO Mortgage Trust, |
||||||||||||
| Series 2022-C01, Class A4 |
3.119 | 02/17/55 | 150 | 127,638 | ||||||||
| CCUBS Commercial Mortgage Trust, |
||||||||||||
| Series 2017-C01, Class A3 |
3.283(cc) | 11/15/50 | 90 | 81,580 | ||||||||
| CD Mortgage Trust, |
||||||||||||
| Series 2017-CD06, Class A3 |
3.104 | 11/13/50 | 40 | 38,307 | ||||||||
| Citigroup Commercial Mortgage Trust, |
||||||||||||
| Series 2016-P06, Class A4 |
3.458 | 12/10/49 | 111 | 103,470 | ||||||||
| Series 2017-P08, Class A3 |
3.203 | 09/15/50 | 75 | 68,457 | ||||||||
| Commercial Mortgage Trust, |
||||||||||||
| Series 2015-PC01, Class A4 |
3.620 | 07/10/50 | 51 | 49,475 | ||||||||
| Series 2016-DC02, Class A5 |
3.765 | 02/10/49 | 25 | 23,497 | ||||||||
| CSAIL Commercial Mortgage Trust, |
||||||||||||
| Series 2016-C07, Class A4 |
3.210 | 11/15/49 | 43 | 40,574 | ||||||||
| Deutsche Bank Commercial Mortgage Trust, |
||||||||||||
| Series 2017-C06, Class A3 |
3.269 | 06/10/50 | 90 | 87,305 | ||||||||
| GS Mortgage Securities Trust, |
||||||||||||
| Series 2020-GC47, Class A4 |
2.124 | 05/12/53 | 100 | 82,140 | ||||||||
| JPMCC Commercial Mortgage Securities Trust, |
||||||||||||
| Series 2019-COR04, Class A3 |
3.763 | 03/10/52 | 125 | 113,580 | ||||||||
| JPMorgan Chase Commercial Mortgage Securities Trust, |
||||||||||||
| Series 2016-JP02, Class A3 |
2.559 | 08/15/49 | 14 | 12,717 | ||||||||
See Notes to Financial Statements.
50
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Interest Rate |
Maturity Date |
Principal Amount (000)# |
Value | ||||||||
| COMMERCIAL MORTGAGE-BACKED SECURITIES (Continued) |
||||||||||||
| JPMorgan Chase Commercial Mortgage Securities Trust, (cont’d.) |
||||||||||||
| Series 2016-JP04, Class A3 |
3.393% | 12/15/49 | 125 | $ | 116,635 | |||||||
| Morgan Stanley Bank of America Merrill Lynch Trust, |
||||||||||||
| Series 2015-C21, Class A3 |
3.077 | 03/15/48 | 59 | 56,014 | ||||||||
| Series 2016-C32, Class A3 |
3.459 | 12/15/49 | 119 | 109,908 | ||||||||
| Morgan Stanley Capital I Trust, |
||||||||||||
| Series 2016-UB12, Class A3 |
3.337 | 12/15/49 | 123 | 113,660 | ||||||||
| Series 2018-L01, Class A3 |
4.139 | 10/15/51 | 250 | 234,068 | ||||||||
| Series 2021-L06, Class A3 |
2.196(cc) | 06/15/54 | 225 | 180,001 | ||||||||
| UBS Commercial Mortgage Trust, |
||||||||||||
| Series 2018-C08, Class A3 |
3.720 | 02/15/51 | 160 | 146,150 | ||||||||
| Series 2018-C09, Class ASB |
4.090 | 03/15/51 | 55 | 52,917 | ||||||||
| Series 2018-C13, Class A3 |
4.069 | 10/15/51 | 200 | 188,468 | ||||||||
| Wells Fargo Commercial Mortgage Trust, |
||||||||||||
| Series 2016-LC25, Class A3 |
3.374 | 12/15/59 | 121 | 113,317 | ||||||||
| Series 2017-C39, Class A3 |
2.878 | 09/15/50 | 100 | 96,372 | ||||||||
| Series 2020-C55, Class A4 |
2.474 | 02/15/53 | 125 | 105,224 | ||||||||
|
|
|
|||||||||||
| TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES |
3,121,046 | |||||||||||
|
|
|
|||||||||||
| CORPORATE BONDS 24.5% |
||||||||||||
| Aerospace & Defense 0.7% |
||||||||||||
| Boeing Co. (The), |
||||||||||||
| Sr. Unsec’d. Notes |
2.196 | 02/04/26 | 100 | 92,286 | ||||||||
| Sr. Unsec’d. Notes |
2.250 | 06/15/26 | 15 | 13,714 | ||||||||
| Sr. Unsec’d. Notes |
2.700 | 02/01/27 | 20 | 18,339 | ||||||||
| Sr. Unsec’d. Notes |
3.100 | 05/01/26 | 10 | 9,464 | ||||||||
| Sr. Unsec’d. Notes |
3.900 | 05/01/49 | 20 | 15,411 | ||||||||
| Sr. Unsec’d. Notes |
5.805 | 05/01/50 | 70 | 70,419 | ||||||||
| L3Harris Technologies, Inc., |
||||||||||||
| Sr. Unsec’d. Notes |
5.400 | 01/15/27 | 60 | 60,141 | ||||||||
| Northrop Grumman Corp., |
||||||||||||
| Sr. Unsec’d. Notes |
4.750 | 06/01/43 | 20 | 18,565 | ||||||||
| Raytheon Technologies Corp., |
||||||||||||
| Sr. Unsec’d. Notes |
4.125 | 11/16/28 | 10 | 9,603 | ||||||||
|
|
|
|||||||||||
| 307,942 | ||||||||||||
See Notes to Financial Statements.
51
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Interest Rate |
Maturity Date |
Principal Amount (000)# |
Value | ||||||||
| CORPORATE BONDS (Continued) |
||||||||||||
| Agriculture 0.6% |
||||||||||||
| Altria Group, Inc., |
||||||||||||
| Gtd. Notes |
3.400% | 02/04/41 | 70 | $ | 48,763 | |||||||
| BAT Capital Corp. (United Kingdom), |
||||||||||||
| Gtd. Notes |
3.557 | 08/15/27 | 60 | 55,683 | ||||||||
| Gtd. Notes |
4.700 | 04/02/27 | 10 | 9,736 | ||||||||
| Gtd. Notes |
6.421 | 08/02/33 | 55 | 55,000 | ||||||||
| Philip Morris International, Inc., |
||||||||||||
| Sr. Unsec’d. Notes |
5.125 | 02/15/30 | 60 | 59,609 | ||||||||
| Sr. Unsec’d. Notes |
5.375 | 02/15/33 | 10 | 9,969 | ||||||||
| Sr. Unsec’d. Notes |
5.625 | 11/17/29 | 15 | 15,328 | ||||||||
|
|
|
|||||||||||
| 254,088 | ||||||||||||
| Airlines 0.2% |
||||||||||||
| Southwest Airlines Co., |
||||||||||||
| Sr. Unsec’d. Notes |
2.625 | 02/10/30 | 20 | 17,111 | ||||||||
| Sr. Unsec’d. Notes |
5.125 | 06/15/27 | 45 | 44,881 | ||||||||
| United Airlines 2012-1 Class A Pass-Through Trust, Pass-Through Certificates |
4.150 | 10/11/25 | 18 | 17,527 | ||||||||
|
|
|
|||||||||||
| 79,519 | ||||||||||||
| Auto Manufacturers 0.2% |
||||||||||||
| General Motors Co., |
||||||||||||
| Sr. Unsec’d. Notes |
6.250 | 10/02/43 | 60 | 58,961 | ||||||||
| Sr. Unsec’d. Notes |
6.750 | 04/01/46 | 15 | 15,283 | ||||||||
| General Motors Financial Co., Inc., |
||||||||||||
| Gtd. Notes |
4.000 | 01/15/25 | 15 | 14,621 | ||||||||
|
|
|
|||||||||||
| 88,865 | ||||||||||||
| Banks 6.0% |
||||||||||||
| Bank of America Corp., |
||||||||||||
| Sr. Unsec’d. Notes |
2.687(ff) | 04/22/32 | 265 | 219,415 | ||||||||
| Sr. Unsec’d. Notes, MTN |
2.496(ff) | 02/13/31 | 115 | 96,431 | ||||||||
| Sr. Unsec’d. Notes, MTN |
3.970(ff) | 03/05/29 | 155 | 145,809 | ||||||||
| Sr. Unsec’d. Notes, MTN |
4.083(ff) | 03/20/51 | 30 | 25,015 | ||||||||
| Barclays PLC (United Kingdom), |
||||||||||||
| Sr. Unsec’d. Notes |
2.645(ff) | 06/24/31 | 160 | 129,047 | ||||||||
See Notes to Financial Statements.
52
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Interest Rate |
Maturity Date |
Principal Amount (000)# |
Value | ||||||||
| CORPORATE BONDS (Continued) |
||||||||||||
| Banks (cont’d.) |
||||||||||||
| Citigroup, Inc., |
||||||||||||
| Sr. Unsec’d. Notes |
2.666%(ff) | 01/29/31 | 105 | $ | 88,879 | |||||||
| Sr. Unsec’d. Notes |
2.904(ff) | 11/03/42 | 20 | 14,156 | ||||||||
| Sr. Unsec’d. Notes |
2.976(ff) | 11/05/30 | 115 | 99,768 | ||||||||
| Sr. Unsec’d. Notes |
3.668(ff) | 07/24/28 | 45 | 42,053 | ||||||||
| Sr. Unsec’d. Notes |
3.980(ff) | 03/20/30 | 30 | 27,821 | ||||||||
| Sr. Unsec’d. Notes |
4.650 | 07/30/45 | 5 | 4,467 | ||||||||
| Sub. Notes |
6.174(ff) | 05/25/34 | 45 | 45,654 | ||||||||
| Discover Bank, |
||||||||||||
| Sr. Unsec’d. Notes |
4.650 | 09/13/28 | 15 | 13,890 | ||||||||
| Fifth Third Bancorp, |
||||||||||||
| Sr. Unsec’d. Notes |
6.339(ff) | 07/27/29 | 10 | 10,185 | ||||||||
| Goldman Sachs Group, Inc. (The), |
||||||||||||
| Sr. Unsec’d. Notes |
1.992(ff) | 01/27/32 | 60 | 47,199 | ||||||||
| Sr. Unsec’d. Notes |
3.814(ff) | 04/23/29 | 30 | 27,942 | ||||||||
| Sr. Unsec’d. Notes |
4.223(ff) | 05/01/29 | 170 | 161,203 | ||||||||
| HSBC Holdings PLC (United Kingdom), |
||||||||||||
| Sr. Unsec’d. Notes |
4.583(ff) | 06/19/29 | 85 | 80,134 | ||||||||
| JPMorgan Chase & Co., |
||||||||||||
| Sr. Unsec’d. Notes |
1.953(ff) | 02/04/32 | 20 | 15,915 | ||||||||
| Sr. Unsec’d. Notes |
2.522(ff) | 04/22/31 | 75 | 63,478 | ||||||||
| Sr. Unsec’d. Notes |
2.580(ff) | 04/22/32 | 40 | 33,188 | ||||||||
| Sr. Unsec’d. Notes |
2.739(ff) | 10/15/30 | 60 | 52,060 | ||||||||
| Sr. Unsec’d. Notes |
3.509(ff) | 01/23/29 | 205 | 190,390 | ||||||||
| Sr. Unsec’d. Notes |
3.882(ff) | 07/24/38 | 80 | 69,055 | ||||||||
| Sr. Unsec’d. Notes |
4.452(ff) | 12/05/29 | 44 | 42,371 | ||||||||
| Sub. Notes |
3.875 | 09/10/24 | 55 | 53,906 | ||||||||
| Morgan Stanley, |
||||||||||||
| Sr. Unsec’d. Notes |
3.217(ff) | 04/22/42 | 20 | 15,114 | ||||||||
| Sr. Unsec’d. Notes |
5.123(ff) | 02/01/29 | 20 | 19,779 | ||||||||
| Sr. Unsec’d. Notes, GMTN |
2.699(ff) | 01/22/31 | 85 | 72,352 | ||||||||
| Sr. Unsec’d. Notes, GMTN |
4.431(ff) | 01/23/30 | 70 | 66,812 | ||||||||
| Sr. Unsec’d. Notes, MTN |
1.794(ff) | 02/13/32 | 110 | 85,511 | ||||||||
| Sr. Unsec’d. Notes, MTN |
1.928(ff) | 04/28/32 | 165 | 128,910 | ||||||||
| PNC Financial Services Group, Inc. (The), |
||||||||||||
| Sr. Unsec’d. Notes |
5.582(ff) | 06/12/29 | 20 | 20,032 | ||||||||
| Sub. Notes |
3.900 | 04/29/24 | 50 | 49,173 | ||||||||
| Truist Financial Corp., |
||||||||||||
| Sr. Unsec’d. Notes, MTN |
5.867(ff) | 06/08/34 | 15 | 15,127 | ||||||||
See Notes to Financial Statements.
53
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Interest Rate |
Maturity Date |
Principal Amount (000)# |
Value | ||||||||
| CORPORATE BONDS (Continued) |
||||||||||||
| Banks (cont’d.) |
||||||||||||
| U.S. Bancorp, |
||||||||||||
| Sr. Unsec’d. Notes |
5.836%(ff) | 06/12/34 | 20 | $ | 20,285 | |||||||
| UBS Group AG (Switzerland), |
||||||||||||
| Sr. Unsec’d. Notes |
4.550 | 04/17/26 | 100 | 96,801 | ||||||||
| Wells Fargo & Co., |
||||||||||||
| Sr. Unsec’d. Notes |
3.000 | 10/23/26 | 55 | 51,307 | ||||||||
| Sr. Unsec’d. Notes |
5.389(ff) | 04/24/34 | 20 | 19,848 | ||||||||
| Sr. Unsec’d. Notes, MTN |
2.572(ff) | 02/11/31 | 45 | 38,016 | ||||||||
| Sr. Unsec’d. Notes, MTN |
2.879(ff) | 10/30/30 | 195 | 168,728 | ||||||||
|
|
|
|||||||||||
| 2,667,226 | ||||||||||||
| Beverages 0.4% |
||||||||||||
| Anheuser-Busch Cos. LLC/Anheuser-Busch InBev Worldwide, Inc. (Belgium), |
||||||||||||
| Gtd. Notes |
4.900 | 02/01/46 | 145 | 137,490 | ||||||||
| Constellation Brands, Inc., |
||||||||||||
| Gtd. Notes |
3.700 | 12/06/26 | 5 | 4,785 | ||||||||
| Gtd. Notes |
4.400 | 11/15/25 | 10 | 9,818 | ||||||||
| Sr. Unsec’d. Notes |
2.250 | 08/01/31 | 45 | 36,390 | ||||||||
|
|
|
|||||||||||
| 188,483 | ||||||||||||
| Biotechnology 0.5% |
||||||||||||
| Amgen, Inc., |
||||||||||||
| Sr. Unsec’d. Notes |
2.600 | 08/19/26 | 120 | 111,565 | ||||||||
| Sr. Unsec’d. Notes |
2.800 | 08/15/41 | 40 | 28,273 | ||||||||
| Sr. Unsec’d. Notes |
5.250 | 03/02/30 | 90 | 90,469 | ||||||||
|
|
|
|||||||||||
| 230,307 | ||||||||||||
| Building Materials 0.2% |
||||||||||||
| Martin Marietta Materials, Inc., |
||||||||||||
| Sr. Unsec’d. Notes |
2.400 | 07/15/31 | 35 | 28,609 | ||||||||
| Owens Corning, |
||||||||||||
| Sr. Unsec’d. Notes |
4.200 | 12/01/24 | 35 | 34,289 | ||||||||
| Sr. Unsec’d. Notes |
4.300 | 07/15/47 | 35 | 28,672 | ||||||||
| Vulcan Materials Co., |
||||||||||||
| Sr. Unsec’d. Notes |
4.500 | 06/15/47 | 5 | 4,407 | ||||||||
|
|
|
|||||||||||
| 95,977 | ||||||||||||
See Notes to Financial Statements.
54
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Interest Rate |
Maturity Date |
Principal Amount (000)# |
Value | ||||||||
| CORPORATE BONDS (Continued) |
||||||||||||
| Chemicals 0.3% |
||||||||||||
| Dow Chemical Co. (The), |
||||||||||||
| Sr. Unsec’d. Notes |
4.625% | 10/01/44 | 15 | $ | 12,914 | |||||||
| FMC Corp., |
||||||||||||
| Sr. Unsec’d. Notes |
3.450 | 10/01/29 | 15 | 13,156 | ||||||||
| Sr. Unsec’d. Notes |
4.500 | 10/01/49 | 15 | 11,444 | ||||||||
| Sr. Unsec’d. Notes |
5.650 | 05/18/33 | 30 | 29,007 | ||||||||
| LYB International Finance BV, |
||||||||||||
| Gtd. Notes |
4.875 | 03/15/44 | 30 | 25,937 | ||||||||
| LYB International Finance III LLC, |
||||||||||||
| Gtd. Notes |
3.375 | 10/01/40 | 5 | 3,698 | ||||||||
| Nutrien Ltd. (Canada), |
||||||||||||
| Sr. Unsec’d. Notes |
4.900 | 03/27/28 | 20 | 19,674 | ||||||||
| Sr. Unsec’d. Notes |
5.250 | 01/15/45 | 10 | 9,259 | ||||||||
| Sherwin-Williams Co. (The), |
||||||||||||
| Sr. Unsec’d. Notes |
4.500 | 06/01/47 | 10 | 8,738 | ||||||||
|
|
|
|||||||||||
| 133,827 | ||||||||||||
| Commercial Services 0.4% |
||||||||||||
| California Institute of Technology, |
||||||||||||
| Sr. Unsec’d. Notes |
3.650 | 09/01/2119 | 15 | 10,021 | ||||||||
| Equifax, Inc., |
||||||||||||
| Sr. Unsec’d. Notes |
2.600 | 12/01/24 | 20 | 19,146 | ||||||||
| Massachusetts Institute of Technology, |
||||||||||||
| Sr. Unsec’d. Notes, Series F |
2.989 | 07/01/50 | 35 | 25,570 | ||||||||
| President & Fellows of Harvard College, |
||||||||||||
| Unsec’d. Notes |
3.150 | 07/15/46 | 9 | 6,836 | ||||||||
| Unsec’d. Notes |
3.745 | 11/15/52 | 20 | 16,792 | ||||||||
| Trustees of the University of Pennsylvania (The), |
||||||||||||
| Sr. Unsec’d. Notes |
3.610 | 02/15/2119 | 5 | 3,550 | ||||||||
| Unsec’d. Notes, Series 2020 |
2.396 | 10/01/50 | 15 | 9,569 | ||||||||
| University of Southern California, |
||||||||||||
| Sr. Unsec’d. Notes |
4.976 | 10/01/53 | 27 | 27,260 | ||||||||
| Unsec’d. Notes, Series 2017 |
3.841 | 10/01/47 | 10 | 8,558 | ||||||||
| Washington University (The), |
||||||||||||
| Sr. Unsec’d. Notes, Series 2022 |
3.524 | 04/15/54 | 35 | 27,927 | ||||||||
| Yale University, |
||||||||||||
| Unsec’d. Notes, Series 2020 |
2.402 | 04/15/50 | 45 | 29,054 | ||||||||
|
|
|
|||||||||||
| 184,283 | ||||||||||||
See Notes to Financial Statements.
55
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Interest Rate |
Maturity Date |
Principal Amount (000)# |
Value | ||||||||
| CORPORATE BONDS (Continued) |
||||||||||||
| Computers 0.2% |
||||||||||||
| Apple, Inc., |
||||||||||||
| Sr. Unsec’d. Notes |
3.250% | 02/23/26 | 30 | $ | 28,912 | |||||||
| Sr. Unsec’d. Notes |
3.850 | 08/04/46 | 35 | 30,469 | ||||||||
| Genpact Luxembourg Sarl/Genpact USA, Inc., |
||||||||||||
| Gtd. Notes |
1.750 | 04/10/26 | 35 | 31,429 | ||||||||
| Teledyne FLIR LLC, |
||||||||||||
| Sr. Unsec’d. Notes |
2.500 | 08/01/30 | 5 | 4,147 | ||||||||
|
|
|
|||||||||||
| 94,957 | ||||||||||||
| Diversified Financial Services 0.3% |
||||||||||||
| Jefferies Financial Group, Inc., |
||||||||||||
| Sr. Unsec’d. Notes |
2.750 | 10/15/32 | 50 | 38,469 | ||||||||
| Sr. Unsec’d. Notes |
5.875 | 07/21/28 | 30 | 29,925 | ||||||||
| Private Export Funding Corp., |
||||||||||||
| U.S. Gov’t. Gtd. Notes, Series KK |
3.550 | 01/15/24 | 25 | 24,739 | ||||||||
| U.S. Gov’t. Gtd. Notes, Series PP |
1.400 | 07/15/28 | 45 | 38,912 | ||||||||
|
|
|
|||||||||||
| 132,045 | ||||||||||||
| Electric 3.5% |
||||||||||||
| AEP Texas, Inc., |
||||||||||||
| Sr. Unsec’d. Notes |
3.450 | 05/15/51 | 15 | 10,582 | ||||||||
| Sr. Unsec’d. Notes |
3.800 | 10/01/47 | 30 | 22,331 | ||||||||
| Sr. Unsec’d. Notes, Series I |
2.100 | 07/01/30 | 70 | 57,285 | ||||||||
| Alabama Power Co., |
||||||||||||
| Sr. Unsec’d. Notes |
3.850 | 12/01/42 | 10 | 8,260 | ||||||||
| Sr. Unsec’d. Notes |
6.125 | 05/15/38 | 35 | 37,267 | ||||||||
| Ameren Illinois Co., |
||||||||||||
| Sr. Sec’d. Notes |
4.150 | 03/15/46 | 25 | 20,935 | ||||||||
| Arizona Public Service Co., |
||||||||||||
| Sr. Unsec’d. Notes |
2.600 | 08/15/29 | 5 | 4,334 | ||||||||
| Sr. Unsec’d. Notes |
3.500 | 12/01/49 | 25 | 17,422 | ||||||||
| Sr. Unsec’d. Notes |
3.750 | 05/15/46 | 25 | 18,358 | ||||||||
| Sr. Unsec’d. Notes |
6.350 | 12/15/32 | 25 | 26,470 | ||||||||
| Atlantic City Electric Co., |
||||||||||||
| First Mortgage |
2.300 | 03/15/31 | 10 | 8,242 | ||||||||
| Berkshire Hathaway Energy Co., |
||||||||||||
| Sr. Unsec’d. Notes |
6.125 | 04/01/36 | 15 | 15,795 | ||||||||
See Notes to Financial Statements.
56
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Interest Rate |
Maturity Date |
Principal Amount (000)# |
Value | ||||||||
| CORPORATE BONDS (Continued) |
||||||||||||
| Electric (cont’d.) |
||||||||||||
| Commonwealth Edison Co., |
||||||||||||
| First Mortgage |
4.600% | 08/15/43 | 70 | $ | 63,507 | |||||||
| First Mortgage |
4.900 | 02/01/33 | 15 | 14,911 | ||||||||
| Connecticut Light & Power Co. (The), |
||||||||||||
| First Mortgage |
5.250 | 01/15/53 | 15 | 15,099 | ||||||||
| Dominion Energy South Carolina, Inc., |
||||||||||||
| First Mortgage |
5.450 | 02/01/41 | 20 | 19,669 | ||||||||
| DTE Electric Co., |
||||||||||||
| General Ref. Mortgage |
3.750 | 08/15/47 | 20 | 15,555 | ||||||||
| Duke Energy Carolinas LLC, |
||||||||||||
| First Mortgage |
4.250 | 12/15/41 | 15 | 12,894 | ||||||||
| First Ref. Mortgage |
4.000 | 09/30/42 | 35 | 28,973 | ||||||||
| Duke Energy Corp., |
||||||||||||
| Sr. Unsec’d. Notes |
2.650 | 09/01/26 | 70 | 64,900 | ||||||||
| Duke Energy Florida LLC, |
||||||||||||
| First Mortgage |
6.350 | 09/15/37 | 15 | 16,279 | ||||||||
| Duke Energy Indiana LLC, |
||||||||||||
| First Mortgage, Series YYY |
3.250 | 10/01/49 | 25 | 17,541 | ||||||||
| Entergy Texas, Inc., |
||||||||||||
| First Mortgage |
1.750 | 03/15/31 | 45 | 35,708 | ||||||||
| Evergy Kansas Central, Inc., |
||||||||||||
| First Mortgage |
4.125 | 03/01/42 | 15 | 12,494 | ||||||||
| First Mortgage |
5.700 | 03/15/53 | 10 | 10,255 | ||||||||
| Eversource Energy, |
||||||||||||
| Sr. Unsec’d. Notes, Series R |
1.650 | 08/15/30 | 15 | 11,903 | ||||||||
| Florida Power & Light Co., |
||||||||||||
| First Mortgage |
3.800 | 12/15/42 | 30 | 25,062 | ||||||||
| First Mortgage |
5.250 | 02/01/41 | 25 | 24,982 | ||||||||
| Fortis, Inc. (Canada), |
||||||||||||
| Sr. Unsec’d. Notes |
3.055 | 10/04/26 | 7 | 6,487 | ||||||||
| Hydro-Quebec (Canada), |
||||||||||||
| Local Gov’t. Gtd. Notes, Series IO |
8.050 | 07/07/24 | 10 | 10,234 | ||||||||
| Nevada Power Co., |
||||||||||||
| General Ref. Mortgage, Series N |
6.650 | 04/01/36 | 30 | 32,252 | ||||||||
| General Ref. Mortgage, Series R |
6.750 | 07/01/37 | 10 | 10,859 | ||||||||
| NextEra Energy Capital Holdings, Inc., |
||||||||||||
| Gtd. Notes |
2.750 | 11/01/29 | 25 | 21,830 | ||||||||
| Gtd. Notes |
6.051 | 03/01/25 | 35 | 35,278 | ||||||||
| Pacific Gas & Electric Co., |
||||||||||||
| First Mortgage |
3.950 | 12/01/47 | 55 | 37,866 | ||||||||
See Notes to Financial Statements.
57
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Interest Rate |
Maturity Date |
Principal Amount (000)# |
Value | ||||||||
| CORPORATE BONDS (Continued) |
||||||||||||
| Electric (cont’d.) |
||||||||||||
| Pacific Gas & Electric Co., (cont’d.) |
||||||||||||
| First Mortgage |
4.000% | 12/01/46 | 15 | $ | 10,150 | |||||||
| First Mortgage |
4.500 | 07/01/40 | 20 | 15,759 | ||||||||
| PacifiCorp, |
||||||||||||
| First Mortgage |
2.700 | 09/15/30 | 25 | 20,899 | ||||||||
| First Mortgage |
4.125 | 01/15/49 | 40 | 30,406 | ||||||||
| First Mortgage |
5.250 | 06/15/35 | 45 | 42,362 | ||||||||
| First Mortgage |
6.000 | 01/15/39 | 15 | 14,843 | ||||||||
| PECO Energy Co., |
||||||||||||
| First Mortgage |
2.800 | 06/15/50 | 5 | 3,277 | ||||||||
| First Mortgage |
4.375 | 08/15/52 | 5 | 4,396 | ||||||||
| First Mortgage |
4.900 | 06/15/33 | 10 | 9,946 | ||||||||
| PPL Electric Utilities Corp., |
||||||||||||
| First Mortgage |
4.125 | 06/15/44 | 15 | 12,615 | ||||||||
| First Mortgage |
4.150 | 10/01/45 | 20 | 16,906 | ||||||||
| First Mortgage |
5.250 | 05/15/53 | 20 | 20,135 | ||||||||
| First Mortgage |
6.250 | 05/15/39 | 10 | 10,860 | ||||||||
| Public Service Co. of Colorado, |
||||||||||||
| First Mortgage |
5.250 | 04/01/53 | 35 | 33,516 | ||||||||
| Public Service Electric & Gas Co., |
||||||||||||
| First Mortgage, MTN |
3.600 | 12/01/47 | 5 | 3,942 | ||||||||
| First Mortgage, MTN |
4.900 | 12/15/32 | 15 | 15,002 | ||||||||
| First Ref. Mortgage, MTN |
3.950 | 05/01/42 | 10 | 8,380 | ||||||||
| Sec’d. Notes, MTN |
4.650 | 03/15/33 | 60 | 58,869 | ||||||||
| Public Service Enterprise Group, Inc., |
||||||||||||
| Sr. Unsec’d. Notes |
2.450 | 11/15/31 | 20 | 16,141 | ||||||||
| Puget Energy, Inc., |
||||||||||||
| Sr. Sec’d. Notes |
4.100 | 06/15/30 | 75 | 67,852 | ||||||||
| San Diego Gas & Electric Co., |
||||||||||||
| First Mortgage |
5.350 | 04/01/53 | 40 | 39,823 | ||||||||
| First Mortgage, Series RRR |
3.750 | 06/01/47 | 5 | 3,878 | ||||||||
| First Mortgage, Series UUU |
3.320 | 04/15/50 | 25 | 17,722 | ||||||||
| Sempra, |
||||||||||||
| Sr. Unsec’d. Notes |
3.300 | 04/01/25 | 55 | 53,094 | ||||||||
| Sr. Unsec’d. Notes |
4.000 | 02/01/48 | 15 | 11,702 | ||||||||
| Southern California Edison Co., |
||||||||||||
| First Mortgage |
4.900 | 06/01/26 | 50 | 49,556 | ||||||||
| First Ref. Mortgage |
4.000 | 04/01/47 | 20 | 16,046 | ||||||||
| First Ref. Mortgage |
4.650 | 10/01/43 | 40 | 35,024 | ||||||||
See Notes to Financial Statements.
58
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Interest Rate |
Maturity Date |
Principal Amount (000)# |
Value | ||||||||
| CORPORATE BONDS (Continued) |
||||||||||||
| Electric (cont’d.) |
||||||||||||
| Tucson Electric Power Co., |
||||||||||||
| Sr. Unsec’d. Notes |
3.250% | 05/15/32 | 30 | $ | 26,033 | |||||||
| Virginia Electric & Power Co., |
||||||||||||
| Sr. Unsec’d. Notes, Series A |
6.000 | 05/15/37 | 20 | 20,867 | ||||||||
| Sr. Unsec’d. Notes, Series B |
6.000 | 01/15/36 | 10 | 10,429 | ||||||||
| WEC Energy Group, Inc., |
||||||||||||
| Sr. Unsec’d. Notes |
1.800 | 10/15/30 | 20 | 15,878 | ||||||||
| Xcel Energy, Inc., |
||||||||||||
| Sr. Unsec’d. Notes |
1.750 | 03/15/27 | 25 | 22,168 | ||||||||
| Sr. Unsec’d. Notes |
4.000 | 06/15/28 | 35 | 33,312 | ||||||||
|
|
|
|||||||||||
| 1,563,607 | ||||||||||||
| Electronics 0.1% |
||||||||||||
| Agilent Technologies, Inc., |
||||||||||||
| Sr. Unsec’d. Notes |
2.300 | 03/12/31 | 45 | 36,978 | ||||||||
| Entertainment 0.1% |
||||||||||||
| Warnermedia Holdings, Inc., |
||||||||||||
| Gtd. Notes |
5.141 | 03/15/52 | 45 | 36,458 | ||||||||
| Foods 0.0% |
||||||||||||
| Mondelez International, Inc., |
||||||||||||
| Sr. Unsec’d. Notes |
2.750 | 04/13/30 | 10 | 8,727 | ||||||||
| Gas 0.3% |
||||||||||||
| CenterPoint Energy Resources Corp., |
||||||||||||
| Sr. Unsec’d. Notes |
5.250 | 03/01/28 | 65 | 65,304 | ||||||||
| NiSource, Inc., |
||||||||||||
| Sr. Unsec’d. Notes |
4.800 | 02/15/44 | 10 | 8,983 | ||||||||
| Sr. Unsec’d. Notes |
5.250 | 02/15/43 | 30 | 28,581 | ||||||||
| Southern Co. Gas Capital Corp., |
||||||||||||
| Gtd. Notes |
4.400 | 06/01/43 | 25 | 20,462 | ||||||||
| Spire Missouri, Inc., |
||||||||||||
| First Mortgage |
4.800 | 02/15/33 | 20 | 19,610 | ||||||||
|
|
|
|||||||||||
| 142,940 | ||||||||||||
See Notes to Financial Statements.
59
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Interest Rate |
Maturity Date |
Principal Amount (000)# |
Value | ||||||||
| CORPORATE BONDS (Continued) |
||||||||||||
| Healthcare-Products 0.1% |
||||||||||||
| Danaher Corp., |
||||||||||||
| Sr. Unsec’d. Notes |
2.800% | 12/10/51 | 15 | $ | 10,139 | |||||||
| Stryker Corp., |
||||||||||||
| Sr. Unsec’d. Notes |
3.375 | 11/01/25 | 10 | 9,603 | ||||||||
| Thermo Fisher Scientific, Inc., |
||||||||||||
| Sr. Unsec’d. Notes |
2.800 | 10/15/41 | 15 | 11,040 | ||||||||
|
|
|
|||||||||||
| 30,782 | ||||||||||||
| Healthcare-Services 1.7% |
||||||||||||
| Advocate Health & Hospitals Corp., |
||||||||||||
| Sr. Unsec’d. Notes |
3.387 | 10/15/49 | 15 | 11,011 | ||||||||
| AHS Hospital Corp., |
||||||||||||
| Sr. Unsec’d. Notes, Series 2021 |
2.780 | 07/01/51 | 10 | 6,463 | ||||||||
| Ascension Health, |
||||||||||||
| Sr. Unsec’d. Notes, Series B |
2.532 | 11/15/29 | 15 | 12,983 | ||||||||
| Baylor Scott & White Holdings, |
||||||||||||
| Unsec’d. Notes, Series 2021 |
1.777 | 11/15/30 | 30 | 23,921 | ||||||||
| Children’s Health System of Texas, |
||||||||||||
| Unsec’d. Notes |
2.511 | 08/15/50 | 10 | 6,130 | ||||||||
| Children’s Hospital Corp. (The), |
||||||||||||
| Gtd. Notes, Series 2017 |
4.115 | 01/01/47 | 10 | 8,500 | ||||||||
| CommonSpirit Health, |
||||||||||||
| Sr. Sec’d. Notes |
2.760 | 10/01/24 | 20 | 19,298 | ||||||||
| Elevance Health, Inc., |
||||||||||||
| Sr. Unsec’d. Notes |
3.650 | 12/01/27 | 40 | 37,924 | ||||||||
| Sr. Unsec’d. Notes |
4.101 | 03/01/28 | 45 | 43,287 | ||||||||
| Sr. Unsec’d. Notes |
4.625 | 05/15/42 | 40 | 36,146 | ||||||||
| Kaiser Foundation Hospitals, |
||||||||||||
| Gtd. Notes |
4.150 | 05/01/47 | 15 | 12,951 | ||||||||
| Unsec’d. Notes, Series 2021 |
2.810 | 06/01/41 | 70 | 50,795 | ||||||||
| Memorial Sloan-Kettering Cancer Center, |
||||||||||||
| Sr. Unsec’d. Notes |
5.000 | 07/01/42 | 30 | 29,141 | ||||||||
| Unsec’d. Notes, Series 2020 |
2.955 | 01/01/50 | 10 | 6,858 | ||||||||
| Methodist Hospital (The), |
||||||||||||
| Unsec’d. Notes, Series 20A |
2.705 | 12/01/50 | 25 | 16,071 | ||||||||
| Mount Sinai Hospitals Group, Inc., |
||||||||||||
| Sec’d. Notes, Series 2019 |
3.737 | 07/01/49 | 10 | 7,589 | ||||||||
| New York & Presbyterian Hospital (The), |
||||||||||||
| Unsec’d. Notes |
4.024 | 08/01/45 | 45 | 37,514 | ||||||||
See Notes to Financial Statements.
60
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Interest Rate |
Maturity Date |
Principal Amount (000)# |
Value | ||||||||
| CORPORATE BONDS (Continued) |
||||||||||||
| Healthcare-Services (cont’d.) |
||||||||||||
| NYU Langone Hospitals, |
||||||||||||
| Sec’d. Notes |
4.368% | 07/01/47 | 15 | $ | 13,149 | |||||||
| OhioHealth Corp., |
||||||||||||
| Sec’d. Notes |
2.297 | 11/15/31 | 30 | 24,350 | ||||||||
| PeaceHealth Obligated Group, |
||||||||||||
| Sr. Unsec’d. Notes, Series 2020 |
1.375 | 11/15/25 | 5 | 4,531 | ||||||||
| Piedmont Healthcare, Inc., |
||||||||||||
| Sec’d. Notes, Series 2042 |
2.719 | 01/01/42 | 15 | 10,134 | ||||||||
| Providence St. Joseph Health Obligated Group, |
||||||||||||
| Unsec’d. Notes, Series 19A |
2.532 | 10/01/29 | 10 | 8,473 | ||||||||
| Unsec’d. Notes, Series H |
2.746 | 10/01/26 | 30 | 27,458 | ||||||||
| Sentara Healthcare, |
||||||||||||
| Sr. Unsec’d. Notes, Series 2021 |
2.927 | 11/01/51 | 15 | 10,000 | ||||||||
| Stanford Health Care, |
||||||||||||
| Unsec’d. Notes |
3.027 | 08/15/51 | 30 | 20,514 | ||||||||
| Unsec’d. Notes, Series 2018 |
3.795 | 11/15/48 | 15 | 12,083 | ||||||||
| Sutter Health, |
||||||||||||
| Unsec’d. Notes, Series 2018 |
4.091 | 08/15/48 | 30 | 24,499 | ||||||||
| UnitedHealth Group, Inc., |
||||||||||||
| Sr. Unsec’d. Notes |
3.050 | 05/15/41 | 30 | 22,887 | ||||||||
| Sr. Unsec’d. Notes |
3.750 | 07/15/25 | 35 | 34,115 | ||||||||
| Sr. Unsec’d. Notes |
4.250 | 06/15/48 | 15 | 13,095 | ||||||||
| Sr. Unsec’d. Notes |
4.500 | 04/15/33 | 160 | 155,834 | ||||||||
| UPMC, |
||||||||||||
| Sec’d. Notes |
5.035 | 05/15/33 | 25 | 24,620 | ||||||||
|
|
|
|||||||||||
| 772,324 | ||||||||||||
| Insurance 0.6% |
||||||||||||
| Arch Capital Finance LLC, |
||||||||||||
| Gtd. Notes |
4.011 | 12/15/26 | 70 | 66,742 | ||||||||
| Chubb Corp. (The), |
||||||||||||
| Gtd. Notes |
6.000 | 05/11/37 | 15 | 16,150 | ||||||||
| CNA Financial Corp., |
||||||||||||
| Sr. Unsec’d. Notes |
3.900 | 05/01/29 | 25 | 23,119 | ||||||||
| Corebridge Financial, Inc., |
||||||||||||
| Sr. Unsec’d. Notes |
3.900 | 04/05/32 | 30 | 26,457 | ||||||||
| Everest Reinsurance Holdings, Inc., |
||||||||||||
| Sr. Unsec’d. Notes |
3.500 | 10/15/50 | 50 | 35,135 | ||||||||
See Notes to Financial Statements.
61
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Interest Rate |
Maturity Date |
Principal Amount (000)# |
Value | ||||||||
| CORPORATE BONDS (Continued) |
||||||||||||
| Insurance (cont’d.) |
||||||||||||
| Fairfax Financial Holdings Ltd. (Canada), |
||||||||||||
| Sr. Unsec’d. Notes |
5.625% | 08/16/32 | 10 | $ | 9,460 | |||||||
| Lincoln National Corp., |
||||||||||||
| Sr. Unsec’d. Notes |
3.050 | 01/15/30 | 5 | 4,180 | ||||||||
| Loews Corp., |
||||||||||||
| Sr. Unsec’d. Notes |
3.200 | 05/15/30 | 15 | 13,383 | ||||||||
| Markel Group, Inc., |
||||||||||||
| Sr. Unsec’d. Notes |
3.450 | 05/07/52 | 5 | 3,501 | ||||||||
| Sr. Unsec’d. Notes |
4.300 | 11/01/47 | 15 | 11,922 | ||||||||
| Unum Group, |
||||||||||||
| Sr. Unsec’d. Notes |
4.000 | 06/15/29 | 65 | 60,242 | ||||||||
|
|
|
|||||||||||
| 270,291 | ||||||||||||
| Iron/Steel 0.0% |
||||||||||||
| Nucor Corp., |
||||||||||||
| Sr. Unsec’d. Notes |
4.300 | 05/23/27 | 15 | 14,616 | ||||||||
| Lodging 0.1% |
||||||||||||
| Marriott International, Inc., |
||||||||||||
| Sr. Unsec’d. Notes, Series R |
3.125 | 06/15/26 | 45 | 42,390 | ||||||||
| Machinery-Diversified 0.2% |
||||||||||||
| Flowserve Corp., |
||||||||||||
| Sr. Unsec’d. Notes |
2.800 | 01/15/32 | 10 | 7,999 | ||||||||
| Westinghouse Air Brake Technologies Corp., |
||||||||||||
| Gtd. Notes |
3.450 | 11/15/26 | 60 | 56,517 | ||||||||
| Gtd. Notes |
4.950 | 09/15/28 | 30 | 29,233 | ||||||||
|
|
|
|||||||||||
| 93,749 | ||||||||||||
| Media 0.7% |
||||||||||||
| Charter Communications Operating LLC/Charter Communications Operating Capital, |
||||||||||||
| Sr. Sec’d. Notes |
3.700 | 04/01/51 | 35 | 22,144 | ||||||||
| Sr. Sec’d. Notes |
4.800 | 03/01/50 | 15 | 11,346 | ||||||||
| Sr. Sec’d. Notes |
5.375 | 04/01/38 | 45 | 38,554 | ||||||||
| Sr. Sec’d. Notes |
6.484 | 10/23/45 | 75 | 70,080 | ||||||||
| Comcast Corp., |
||||||||||||
| Gtd. Notes |
3.450 | 02/01/50 | 25 | 18,749 | ||||||||
See Notes to Financial Statements.
62
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Interest Rate |
Maturity Date |
Principal Amount (000)# |
Value | ||||||||
| CORPORATE BONDS (Continued) |
||||||||||||
| Media (cont’d.) |
||||||||||||
| Comcast Corp., (cont’d.) |
||||||||||||
| Gtd. Notes |
3.750% | 04/01/40 | 10 | $ | 8,368 | |||||||
| Gtd. Notes |
5.500 | 05/15/64 | 35 | 35,080 | ||||||||
| Discovery Communications LLC, |
||||||||||||
| Gtd. Notes |
4.000 | 09/15/55 | 51 | 33,795 | ||||||||
| Gtd. Notes |
4.125 | 05/15/29 | 20 | 18,378 | ||||||||
| Gtd. Notes |
5.300 | 05/15/49 | 25 | 20,666 | ||||||||
| Walt Disney Co. (The), |
||||||||||||
| Gtd. Notes |
7.300 | 04/30/28 | 35 | 38,342 | ||||||||
|
|
|
|||||||||||
| 315,502 | ||||||||||||
| Mining 0.8% |
||||||||||||
| Barrick North America Finance LLC (Canada), |
||||||||||||
| Gtd. Notes |
5.700 | 05/30/41 | 85 | 85,860 | ||||||||
| Freeport-McMoRan, Inc., |
||||||||||||
| Gtd. Notes |
4.125 | 03/01/28 | 20 | 18,885 | ||||||||
| Gtd. Notes |
4.375 | 08/01/28 | 55 | 52,156 | ||||||||
| Gtd. Notes |
5.400 | 11/14/34 | 25 | 24,272 | ||||||||
| Kinross Gold Corp. (Canada), |
||||||||||||
| Sr. Unsec’d. Notes, 144A |
6.250 | 07/15/33 | 45 | 44,333 | ||||||||
| Newmont Corp., |
||||||||||||
| Gtd. Notes |
2.250 | 10/01/30 | 55 | 45,122 | ||||||||
| Gtd. Notes |
2.800 | 10/01/29 | 45 | 39,075 | ||||||||
| Gtd. Notes |
5.450 | 06/09/44 | 25 | 24,412 | ||||||||
|
|
|
|||||||||||
| 334,115 | ||||||||||||
| Miscellaneous Manufacturing 0.4% |
||||||||||||
| Carlisle Cos., Inc., |
||||||||||||
| Sr. Unsec’d. Notes |
2.200 | 03/01/32 | 50 | 39,556 | ||||||||
| Pentair Finance Sarl, |
||||||||||||
| Gtd. Notes |
4.500 | 07/01/29 | 15 | 14,184 | ||||||||
| Teledyne Technologies, Inc., |
||||||||||||
| Gtd. Notes |
2.250 | 04/01/28 | 65 | 57,122 | ||||||||
| Textron, Inc., |
||||||||||||
| Sr. Unsec’d. Notes |
2.450 | 03/15/31 | 50 | 41,191 | ||||||||
|
|
|
|||||||||||
| 152,053 | ||||||||||||
See Notes to Financial Statements.
63
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Interest Rate |
Maturity Date |
Principal Amount (000)# |
Value | ||||||||
| CORPORATE BONDS (Continued) |
||||||||||||
| Oil & Gas 0.3% |
||||||||||||
| BP Capital Markets America, Inc., |
||||||||||||
| Gtd. Notes |
4.893% | 09/11/33 | 20 | $ | 19,762 | |||||||
| Cenovus Energy, Inc. (Canada), |
||||||||||||
| Sr. Unsec’d. Notes |
3.750 | 02/15/52 | 15 | 10,649 | ||||||||
| Devon Energy Corp., |
||||||||||||
| Sr. Unsec’d. Notes |
5.600 | 07/15/41 | 10 | 9,546 | ||||||||
| Equinor ASA (Norway), |
||||||||||||
| Gtd. Notes |
3.700 | 04/06/50 | 20 | 16,008 | ||||||||
| Exxon Mobil Corp., |
||||||||||||
| Sr. Unsec’d. Notes |
4.114 | 03/01/46 | 15 | 13,113 | ||||||||
| Phillips 66 Co., |
||||||||||||
| Gtd. Notes |
3.750 | 03/01/28 | 10 | 9,397 | ||||||||
| Gtd. Notes |
4.900 | 10/01/46 | 25 | 22,037 | ||||||||
| TotalEnergies Capital International SA (France), |
||||||||||||
| Gtd. Notes |
2.829 | 01/10/30 | 25 | 22,327 | ||||||||
|
|
|
|||||||||||
| 122,839 | ||||||||||||
| Packaging & Containers 0.1% |
||||||||||||
| Berry Global, Inc., |
||||||||||||
| Sr. Sec’d. Notes |
1.570 | 01/15/26 | 45 | 40,766 | ||||||||
| Pharmaceuticals 1.3% |
||||||||||||
| AbbVie, Inc., |
||||||||||||
| Sr. Unsec’d. Notes |
4.050 | 11/21/39 | 50 | 43,478 | ||||||||
| Sr. Unsec’d. Notes |
4.550 | 03/15/35 | 35 | 33,299 | ||||||||
| Sr. Unsec’d. Notes |
4.700 | 05/14/45 | 40 | 36,287 | ||||||||
| Astrazeneca Finance LLC (United Kingdom), |
||||||||||||
| Gtd. Notes |
2.250 | 05/28/31 | 10 | 8,402 | ||||||||
| Cigna Group (The), |
||||||||||||
| Gtd. Notes |
4.500 | 02/25/26 | 60 | 58,910 | ||||||||
| Gtd. Notes |
4.900 | 12/15/48 | 15 | 13,837 | ||||||||
| CVS Health Corp., |
||||||||||||
| Sr. Unsec’d. Notes |
4.300 | 03/25/28 | 10 | 9,682 | ||||||||
| Sr. Unsec’d. Notes |
4.780 | 03/25/38 | 35 | 32,264 | ||||||||
| Sr. Unsec’d. Notes |
5.125 | 02/21/30 | 65 | 64,669 | ||||||||
| Sr. Unsec’d. Notes |
5.125 | 07/20/45 | 35 | 32,169 | ||||||||
| Mylan, Inc., |
||||||||||||
| Gtd. Notes |
5.200 | 04/15/48 | 30 | 23,828 | ||||||||
See Notes to Financial Statements.
64
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Interest Rate |
Maturity Date |
Principal Amount (000)# |
Value | ||||||||
| CORPORATE BONDS (Continued) |
||||||||||||
| Pharmaceuticals (cont’d.) |
||||||||||||
| Takeda Pharmaceutical Co. Ltd. (Japan), |
||||||||||||
| Sr. Unsec’d. Notes |
2.050% | 03/31/30 | 135 | $ | 111,726 | |||||||
| Utah Acquisition Sub, Inc., |
||||||||||||
| Gtd. Notes |
3.950 | 06/15/26 | 20 | 18,977 | ||||||||
| Viatris, Inc., |
||||||||||||
| Gtd. Notes |
3.850 | 06/22/40 | 50 | 35,476 | ||||||||
| Gtd. Notes |
4.000 | 06/22/50 | 30 | 20,290 | ||||||||
| Wyeth LLC, |
||||||||||||
| Gtd. Notes |
6.450 | 02/01/24 | 30 | 30,091 | ||||||||
| Gtd. Notes |
6.500 | 02/01/34 | 15 | 16,868 | ||||||||
|
|
|
|||||||||||
| 590,253 | ||||||||||||
| Pipelines 1.5% |
||||||||||||
| Energy Transfer LP, |
||||||||||||
| Sr. Unsec’d. Notes |
3.900 | 07/15/26 | 55 | 52,641 | ||||||||
| Sr. Unsec’d. Notes |
4.200 | 04/15/27 | 30 | 28,774 | ||||||||
| Sr. Unsec’d. Notes |
4.750 | 01/15/26 | 40 | 39,262 | ||||||||
| Sr. Unsec’d. Notes |
5.300 | 04/15/47 | 10 | 8,749 | ||||||||
| Sr. Unsec’d. Notes |
6.000 | 06/15/48 | 25 | 23,761 | ||||||||
| Sr. Unsec’d. Notes |
6.125 | 12/15/45 | 50 | 47,897 | ||||||||
| Sr. Unsec’d. Notes |
6.625 | 10/15/36 | 10 | 10,355 | ||||||||
| Enterprise Products Operating LLC, |
||||||||||||
| Gtd. Notes |
4.850 | 03/15/44 | 40 | 36,607 | ||||||||
| MPLX LP, |
||||||||||||
| Sr. Unsec’d. Notes |
2.650 | 08/15/30 | 100 | 84,040 | ||||||||
| Sr. Unsec’d. Notes |
4.500 | 04/15/38 | 20 | 17,245 | ||||||||
| Sr. Unsec’d. Notes |
4.700 | 04/15/48 | 25 | 20,693 | ||||||||
| ONEOK, Inc., |
||||||||||||
| Gtd. Notes |
3.100 | 03/15/30 | 110 | 94,674 | ||||||||
| Gtd. Notes |
4.950 | 07/13/47 | 10 | 8,336 | ||||||||
| Plains All American Pipeline LP/PAA Finance Corp., |
||||||||||||
| Sr. Unsec’d. Notes |
3.550 | 12/15/29 | 25 | 22,121 | ||||||||
| Targa Resources Corp., |
||||||||||||
| Gtd. Notes |
4.200 | 02/01/33 | 15 | 13,403 | ||||||||
| Gtd. Notes |
6.125 | 03/15/33 | 30 | 30,789 | ||||||||
| Transcontinental Gas Pipe Line Co. LLC, |
||||||||||||
| Sr. Unsec’d. Notes |
3.250 | 05/15/30 | 70 | 62,374 | ||||||||
| Sr. Unsec’d. Notes |
4.600 | 03/15/48 | 25 | 21,438 | ||||||||
See Notes to Financial Statements.
65
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Interest Rate |
Maturity Date |
Principal Amount (000)# |
Value | ||||||||
| CORPORATE BONDS (Continued) |
||||||||||||
| Pipelines (cont’d.) |
||||||||||||
| Williams Cos., Inc. (The), |
||||||||||||
| Sr. Unsec’d. Notes |
3.750% | 06/15/27 | 30 | $ | 28,453 | |||||||
| Sr. Unsec’d. Notes |
4.850 | 03/01/48 | 10 | 8,764 | ||||||||
|
|
|
|||||||||||
| 660,376 | ||||||||||||
| Real Estate Investment Trusts (REITs) 0.8% |
||||||||||||
| Brixmor Operating Partnership LP, |
||||||||||||
| Sr. Unsec’d. Notes |
2.500 | 08/16/31 | 50 | 39,133 | ||||||||
| Corporate Office Properties LP, |
||||||||||||
| Gtd. Notes |
2.900 | 12/01/33 | 30 | 21,551 | ||||||||
| CubeSmart LP, |
||||||||||||
| Gtd. Notes |
2.250 | 12/15/28 | 20 | 16,974 | ||||||||
| Essex Portfolio LP, |
||||||||||||
| Gtd. Notes |
1.700 | 03/01/28 | 15 | 12,738 | ||||||||
| GLP Capital LP/GLP Financing II, Inc., |
||||||||||||
| Gtd. Notes |
3.250 | 01/15/32 | 10 | 8,177 | ||||||||
| Healthpeak Properties, Inc., |
||||||||||||
| Gtd. Notes |
3.000 | 01/15/30 | 20 | 17,434 | ||||||||
| Host Hotels & Resorts LP, |
||||||||||||
| Sr. Unsec’d. Notes, Series J |
2.900 | 12/15/31 | 15 | 11,889 | ||||||||
| Kimco Realty OP LLC, |
||||||||||||
| Gtd. Notes |
1.900 | 03/01/28 | 55 | 46,778 | ||||||||
| Gtd. Notes |
3.200 | 04/01/32 | 25 | 20,975 | ||||||||
| Realty Income Corp., |
||||||||||||
| Sr. Unsec’d. Notes |
3.100 | 12/15/29 | 60 | 53,303 | ||||||||
| Sr. Unsec’d. Notes |
3.400 | 01/15/28 | 10 | 9,293 | ||||||||
| Simon Property Group LP, |
||||||||||||
| Sr. Unsec’d. Notes |
2.450 | 09/13/29 | 30 | 25,490 | ||||||||
| Sr. Unsec’d. Notes |
3.500 | 09/01/25 | 5 | 4,819 | ||||||||
| Spirit Realty LP, |
||||||||||||
| Gtd. Notes |
2.700 | 02/15/32 | 25 | 19,234 | ||||||||
| VICI Properties LP, |
||||||||||||
| Sr. Unsec’d. Notes |
4.750 | 02/15/28 | 25 | 23,969 | ||||||||
| Welltower OP LLC, |
||||||||||||
| Gtd. Notes |
2.700 | 02/15/27 | 10 | 9,205 | ||||||||
| WP Carey, Inc., |
||||||||||||
| Sr. Unsec’d. Notes |
2.400 | 02/01/31 | 40 | 32,218 | ||||||||
|
|
|
|||||||||||
| 373,180 | ||||||||||||
See Notes to Financial Statements.
66
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Interest Rate |
Maturity Date |
Principal Amount (000)# |
Value | ||||||||
| CORPORATE BONDS (Continued) |
||||||||||||
| Retail 0.1% |
||||||||||||
| Home Depot, Inc. (The), |
||||||||||||
| Sr. Unsec’d. Notes |
3.900% | 06/15/47 | 20 | $ | 16,806 | |||||||
| Lowe’s Cos., Inc., |
||||||||||||
| Sr. Unsec’d. Notes |
3.100 | 05/03/27 | 20 | 18,745 | ||||||||
| O’Reilly Automotive, Inc., |
||||||||||||
| Sr. Unsec’d. Notes |
1.750 | 03/15/31 | 15 | 11,858 | ||||||||
| Sr. Unsec’d. Notes |
4.700 | 06/15/32 | 10 | 9,629 | ||||||||
|
|
|
|||||||||||
| 57,038 | ||||||||||||
| Semiconductors 0.4% |
||||||||||||
| Broadcom, Inc., |
||||||||||||
| Gtd. Notes, 144A |
3.500 | 02/15/41 | 20 | 14,852 | ||||||||
| Sr. Unsec’d. Notes, 144A |
3.419 | 04/15/33 | 52 | 43,476 | ||||||||
| Sr. Unsec’d. Notes, 144A |
4.926 | 05/15/37 | 85 | 77,302 | ||||||||
| Intel Corp., |
||||||||||||
| Sr. Unsec’d. Notes |
5.625 | 02/10/43 | 5 | 5,054 | ||||||||
| Sr. Unsec’d. Notes |
5.700 | 02/10/53 | 20 | 20,399 | ||||||||
| Sr. Unsec’d. Notes |
5.900 | 02/10/63 | 20 | 20,672 | ||||||||
|
|
|
|||||||||||
| 181,755 | ||||||||||||
| Software 0.7% |
||||||||||||
| Fidelity National Information Services, Inc., |
||||||||||||
| Sr. Unsec’d. Notes |
3.100 | 03/01/41 | 10 | 7,115 | ||||||||
| Fiserv, Inc., |
||||||||||||
| Sr. Unsec’d. Notes |
3.850 | 06/01/25 | 15 | 14,580 | ||||||||
| Intuit, Inc., |
||||||||||||
| Sr. Unsec’d. Notes |
1.350 | 07/15/27 | 5 | 4,393 | ||||||||
| Microsoft Corp., |
||||||||||||
| Sr. Unsec’d. Notes |
2.921 | 03/17/52 | 22 | 16,048 | ||||||||
| Oracle Corp., |
||||||||||||
| Sr. Unsec’d. Notes |
2.800 | 04/01/27 | 85 | 78,420 | ||||||||
| Sr. Unsec’d. Notes |
2.950 | 05/15/25 | 75 | 71,892 | ||||||||
| Sr. Unsec’d. Notes |
3.600 | 04/01/50 | 5 | 3,557 | ||||||||
| Sr. Unsec’d. Notes |
5.550 | 02/06/53 | 20 | 19,183 | ||||||||
| Sr. Unsec’d. Notes |
6.900 | 11/09/52 | 30 | 33,616 | ||||||||
| ServiceNow, Inc., |
||||||||||||
| Sr. Unsec’d. Notes |
1.400 | 09/01/30 | 30 | 23,769 | ||||||||
See Notes to Financial Statements.
67
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Interest Rate |
Maturity Date |
Principal Amount (000)# |
Value | ||||||||
| CORPORATE BONDS (Continued) |
||||||||||||
| Software (cont’d.) |
||||||||||||
| Workday, Inc., |
||||||||||||
| Sr. Unsec’d. Notes |
3.500% | 04/01/27 | 10 | $ | 9,496 | |||||||
| Sr. Unsec’d. Notes |
3.700 | 04/01/29 | 25 | 23,327 | ||||||||
|
|
|
|||||||||||
| 305,396 | ||||||||||||
| Telecommunications 0.6% |
||||||||||||
| AT&T, Inc., |
||||||||||||
| Sr. Unsec’d. Notes |
3.500 | 06/01/41 | 100 | 74,462 | ||||||||
| Sr. Unsec’d. Notes |
3.550 | 09/15/55 | 45 | 30,250 | ||||||||
| Sr. Unsec’d. Notes |
3.800 | 12/01/57 | 25 | 17,379 | ||||||||
| T-Mobile USA, Inc., |
||||||||||||
| Gtd. Notes |
3.000 | 02/15/41 | 45 | 32,590 | ||||||||
| Gtd. Notes |
3.875 | 04/15/30 | 40 | 36,761 | ||||||||
| Verizon Communications, Inc., |
||||||||||||
| Sr. Unsec’d. Notes |
2.355 | 03/15/32 | 25 | 19,952 | ||||||||
| Sr. Unsec’d. Notes |
2.650 | 11/20/40 | 5 | 3,418 | ||||||||
| Sr. Unsec’d. Notes |
3.400 | 03/22/41 | 45 | 34,193 | ||||||||
| Sr. Unsec’d. Notes |
4.016 | 12/03/29 | 10 | 9,325 | ||||||||
|
|
|
|||||||||||
| 258,330 | ||||||||||||
| Transportation 0.1% |
||||||||||||
| CSX Corp., |
||||||||||||
| Sr. Unsec’d. Notes |
4.100 | 03/15/44 | 10 | 8,555 | ||||||||
| Union Pacific Corp., |
||||||||||||
| Sr. Unsec’d. Notes |
3.000 | 04/15/27 | 15 | 14,119 | ||||||||
| Sr. Unsec’d. Notes |
3.600 | 09/15/37 | 10 | 8,518 | ||||||||
| Sr. Unsec’d. Notes |
3.799 | 04/06/71 | 5 | 3,795 | ||||||||
|
|
|
|||||||||||
| 34,987 | ||||||||||||
|
|
|
|||||||||||
| TOTAL CORPORATE BONDS |
10,896,971 | |||||||||||
|
|
|
|||||||||||
| MUNICIPAL BONDS 0.9% |
||||||||||||
| Arizona 0.1% |
||||||||||||
| Salt River Project Agricultural Improvement & Power District, |
||||||||||||
| Revenue Bonds, BABs |
4.839 | 01/01/41 | 35 | 33,885 | ||||||||
See Notes to Financial Statements.
68
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Interest Rate |
Maturity Date |
Principal Amount (000)# |
Value | ||||||||
| MUNICIPAL BONDS (Continued) |
||||||||||||
| California 0.2% |
||||||||||||
| Bay Area Toll Authority, |
||||||||||||
| Revenue Bonds, BABs, Series F2 |
6.263% | 04/01/49 | 35 | $ | 40,646 | |||||||
| Los Angeles Department of Water & Power, Power System Revenue, |
||||||||||||
| Revenue Bonds, BABs |
5.716 | 07/01/39 | 20 | 21,304 | ||||||||
| State of California, |
||||||||||||
| General Obligation Unlimited, Taxable, BABs |
7.550 | 04/01/39 | 30 | 37,244 | ||||||||
|
|
|
|||||||||||
| 99,194 | ||||||||||||
| Illinois 0.0% |
||||||||||||
| State of Illinois, |
||||||||||||
| General Obligation Unlimited, Taxable |
5.100 | 06/01/33 | 25 | 24,431 | ||||||||
| Michigan 0.1% |
||||||||||||
| Michigan Finance Authority, |
||||||||||||
| Taxable, Revenue Bonds |
3.384 | 12/01/40 | 15 | 11,953 | ||||||||
| University of Michigan, |
||||||||||||
| Taxable, Revenue Bonds, Series B |
2.437 | 04/01/40 | 25 | 18,355 | ||||||||
| Taxable, Revenue Bonds, Series B |
3.504 | 04/01/52 | 15 | 11,829 | ||||||||
|
|
|
|||||||||||
| 42,137 | ||||||||||||
| New Jersey 0.2% |
||||||||||||
| New Jersey Turnpike Authority, |
||||||||||||
| Taxable, Revenue Bonds, BABs, Series F |
7.414 | 01/01/40 | 60 | 74,134 | ||||||||
| New York 0.1% |
||||||||||||
| New York State Dormitory Authority, |
||||||||||||
| Taxable, Revenue Bonds, Series C |
2.202 | 03/15/34 | 30 | 23,309 | ||||||||
| Port Authority of New York & New Jersey, |
||||||||||||
| Consolidated, Taxable, Revenue Bonds, Series 174 |
4.458 | 10/01/62 | 15 | 13,673 | ||||||||
|
|
|
|||||||||||
| 36,982 | ||||||||||||
| Ohio 0.1% |
||||||||||||
| JobsOhio Beverage System, |
||||||||||||
| Taxable, Revenue Bonds, Series A |
2.833 | 01/01/38 | 5 | 3,917 | ||||||||
| Ohio State University (The), |
||||||||||||
| Taxable, Revenue Bonds, Series A |
4.048 | 12/01/56 | 12 | 10,095 | ||||||||
See Notes to Financial Statements.
69
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Interest Rate |
Maturity Date |
Principal Amount (000)# |
Value | ||||||||
| MUNICIPAL BONDS (Continued) |
||||||||||||
| Ohio (cont’d.) |
||||||||||||
| Ohio State University (The), (cont’d.) |
||||||||||||
| Taxable, Revenue Bonds, Series A |
4.800% | 06/01/2111 | 15 | $ | 13,311 | |||||||
| Taxable, Revenue Bonds, BABs, Series C |
4.910 | 06/01/40 | 10 | 9,786 | ||||||||
|
|
|
|||||||||||
| 37,109 | ||||||||||||
| Texas 0.0% |
||||||||||||
| Texas Private Activity Bond Surface Transportation Corp., |
||||||||||||
| Taxable, Revenue Bonds, Series B |
3.922 | 12/31/49 | 15 | 12,016 | ||||||||
| Virginia 0.1% |
||||||||||||
| University of Virginia, |
||||||||||||
| Taxable, Revenue Bonds, Series B |
2.584 | 11/01/51 | 40 | 26,005 | ||||||||
|
|
|
|||||||||||
| TOTAL MUNICIPAL BONDS |
385,893 | |||||||||||
|
|
|
|||||||||||
| SOVEREIGN BONDS 1.9% |
||||||||||||
| Indonesia Government International Bond (Indonesia), |
||||||||||||
| Sr. Unsec’d. Notes |
3.500 | 01/11/28 | 200 | 188,334 | ||||||||
| Israel Government International Bond (Israel), |
||||||||||||
| Sr. Unsec’d. Notes |
2.875 | 03/16/26 | 225 | 211,383 | ||||||||
| Mexico Government International Bond (Mexico), |
||||||||||||
| Sr. Unsec’d. Notes |
4.500 | 04/22/29 | 200 | 193,496 | ||||||||
| Sr. Unsec’d. Notes, MTN |
4.750 | 03/08/44 | 66 | 56,675 | ||||||||
| Peruvian Government International Bond (Peru), |
||||||||||||
| Sr. Unsec’d. Notes |
2.783 | 01/23/31 | 32 | 27,166 | ||||||||
| Philippine Government International Bond (Philippines), |
||||||||||||
| Sr. Unsec’d. Notes |
7.750 | 01/14/31 | 100 | 117,646 | ||||||||
| Province of Quebec (Canada), |
||||||||||||
| Debentures, Series NN |
7.125 | 02/09/24 | 30 | 30,234 | ||||||||
|
|
|
|||||||||||
| TOTAL SOVEREIGN BONDS |
824,934 | |||||||||||
|
|
|
|||||||||||
| U.S. GOVERNMENT AGENCY OBLIGATIONS 29.6% |
||||||||||||
| Federal Home Loan Bank |
4.250 | 09/10/32 | 20 | 19,406 | ||||||||
| Federal Home Loan Mortgage Corp. |
1.500 | 10/01/50 | 203 | 156,664 | ||||||||
| Federal Home Loan Mortgage Corp. |
2.000 | 01/01/32 | 26 | 23,722 | ||||||||
| Federal Home Loan Mortgage Corp. |
2.000 | 12/01/50 | 387 | 314,272 | ||||||||
See Notes to Financial Statements.
70
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Interest Rate |
Maturity Date |
Principal Amount (000)# |
Value | ||||||||
| U.S. GOVERNMENT AGENCY OBLIGATIONS (Continued) |
||||||||||||
| Federal Home Loan Mortgage Corp. |
2.000% | 05/01/51 | 456 | $ | 370,114 | |||||||
| Federal Home Loan Mortgage Corp. |
2.000 | 07/01/51 | 123 | 99,399 | ||||||||
| Federal Home Loan Mortgage Corp. |
2.500 | 07/01/31 | 66 | 61,175 | ||||||||
| Federal Home Loan Mortgage Corp. |
2.500 | 04/01/51 | 243 | 205,499 | ||||||||
| Federal Home Loan Mortgage Corp. |
2.500 | 10/01/51 | 333 | 284,522 | ||||||||
| Federal Home Loan Mortgage Corp. |
3.000 | 02/01/32 | 20 | 18,386 | ||||||||
| Federal Home Loan Mortgage Corp. |
3.000 | 02/01/32 | 23 | 21,463 | ||||||||
| Federal Home Loan Mortgage Corp. |
3.000 | 01/01/37 | 8 | 7,244 | ||||||||
| Federal Home Loan Mortgage Corp. |
3.000 | 12/01/37 | 11 | 10,242 | ||||||||
| Federal Home Loan Mortgage Corp. |
3.000 | 12/01/42 | 81 | 73,176 | ||||||||
| Federal Home Loan Mortgage Corp. |
3.000 | 11/01/46 | 22 | 19,644 | ||||||||
| Federal Home Loan Mortgage Corp. |
3.000 | 01/01/47 | 143 | 127,681 | ||||||||
| Federal Home Loan Mortgage Corp. |
3.000 | 03/01/47 | 98 | 86,987 | ||||||||
| Federal Home Loan Mortgage Corp. |
3.000 | 12/01/47 | 55 | 49,196 | ||||||||
| Federal Home Loan Mortgage Corp. |
3.000 | 12/01/47 | 83 | 73,702 | ||||||||
| Federal Home Loan Mortgage Corp. |
3.500 | 11/01/37 | 13 | 12,003 | ||||||||
| Federal Home Loan Mortgage Corp. |
3.500 | 06/01/42 | 19 | 18,115 | ||||||||
| Federal Home Loan Mortgage Corp. |
3.500 | 04/01/46 | 25 | 22,691 | ||||||||
| Federal Home Loan Mortgage Corp. |
3.500 | 11/01/47 | 34 | 31,086 | ||||||||
| Federal Home Loan Mortgage Corp. |
3.500 | 11/01/47 | 41 | 38,006 | ||||||||
| Federal Home Loan Mortgage Corp. |
3.500 | 02/01/48 | 120 | 110,675 | ||||||||
| Federal Home Loan Mortgage Corp. |
3.500 | 04/01/48 | 242 | 222,345 | ||||||||
| Federal Home Loan Mortgage Corp. |
4.000 | 11/01/37 | 111 | 106,681 | ||||||||
| Federal Home Loan Mortgage Corp. |
4.000 | 10/01/45 | 22 | 20,802 | ||||||||
| Federal Home Loan Mortgage Corp. |
4.000 | 05/01/46 | 44 | 41,975 | ||||||||
| Federal Home Loan Mortgage Corp. |
4.000 | 03/01/47 | 21 | 20,312 | ||||||||
| Federal Home Loan Mortgage Corp. |
4.000 | 01/01/48 | 35 | 33,324 | ||||||||
| Federal Home Loan Mortgage Corp. |
4.500 | 07/01/47 | 44 | 43,017 | ||||||||
| Federal Home Loan Mortgage Corp. |
4.500 | 12/01/48 | 11 | 10,920 | ||||||||
| Federal Home Loan Mortgage Corp. |
4.500 | 08/01/52 | 283 | 270,743 | ||||||||
| Federal Home Loan Mortgage Corp. |
6.250 | 07/15/32 | 45 | 52,036 | ||||||||
| Federal Home Loan Mortgage Corp. |
6.750 | 03/15/31 | 25 | 29,064 | ||||||||
| Federal National Mortgage Assoc. |
0.500 | 06/17/25 | 50 | 46,023 | ||||||||
| Federal National Mortgage Assoc. |
0.500 | 11/07/25 | 30 | 27,230 | ||||||||
| Federal National Mortgage Assoc. |
0.875 | 08/05/30 | 10 | 7,994 | ||||||||
| Federal National Mortgage Assoc. |
1.500 | 10/01/50 | 216 | 166,387 | ||||||||
| Federal National Mortgage Assoc. |
1.500 | 11/01/50 | 218 | 167,712 | ||||||||
| Federal National Mortgage Assoc. |
1.500 | 02/01/51 | 195 | 150,106 | ||||||||
| Federal National Mortgage Assoc. |
2.000 | 05/01/36 | 495 | 437,246 | ||||||||
| Federal National Mortgage Assoc. |
2.000 | 07/01/36 | 118 | 104,757 | ||||||||
| Federal National Mortgage Assoc. |
2.000 | 07/01/40 | 166 | 137,804 | ||||||||
| Federal National Mortgage Assoc. |
2.000 | 01/01/41 | 387 | 329,379 | ||||||||
See Notes to Financial Statements.
71
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Interest Rate |
Maturity Date |
Principal Amount (000)# |
Value | ||||||||
| U.S. GOVERNMENT AGENCY OBLIGATIONS (Continued) |
||||||||||||
| Federal National Mortgage Assoc. |
2.000% | 05/01/41 | 396 | $ | 335,690 | |||||||
| Federal National Mortgage Assoc. |
2.000 | 09/01/50 | 291 | 236,886 | ||||||||
| Federal National Mortgage Assoc. |
2.000 | 12/01/50 | 153 | 125,689 | ||||||||
| Federal National Mortgage Assoc. |
2.000 | 01/01/51 | 276 | 224,073 | ||||||||
| Federal National Mortgage Assoc. |
2.000 | 03/01/51 | 126 | 102,680 | ||||||||
| Federal National Mortgage Assoc. |
2.000 | 05/01/51 | 225 | 182,699 | ||||||||
| Federal National Mortgage Assoc. |
2.500 | 02/05/24 | 65 | 64,025 | ||||||||
| Federal National Mortgage Assoc. |
2.500 | 06/01/28 | 51 | 47,925 | ||||||||
| Federal National Mortgage Assoc. |
2.500 | 01/01/32 | 66 | 61,022 | ||||||||
| Federal National Mortgage Assoc. |
2.500 | 02/01/43 | 31 | 26,288 | ||||||||
| Federal National Mortgage Assoc. |
2.500 | 09/01/46 | 30 | 25,961 | ||||||||
| Federal National Mortgage Assoc. |
2.500 | 09/01/46 | 53 | 45,412 | ||||||||
| Federal National Mortgage Assoc. |
2.500 | 05/01/50 | 179 | 152,242 | ||||||||
| Federal National Mortgage Assoc. |
2.500 | 08/01/50 | 336 | 284,940 | ||||||||
| Federal National Mortgage Assoc. |
2.500 | 10/01/50 | 376 | 318,893 | ||||||||
| Federal National Mortgage Assoc. |
2.500 | 04/01/51 | 744 | 629,753 | ||||||||
| Federal National Mortgage Assoc. |
2.500 | 08/01/51 | 101 | 85,289 | ||||||||
| Federal National Mortgage Assoc. |
3.000 | 11/01/28 | 33 | 31,231 | ||||||||
| Federal National Mortgage Assoc. |
3.000 | 01/01/30 | 67 | 64,062 | ||||||||
| Federal National Mortgage Assoc. |
3.000 | 12/01/36 | 24 | 22,314 | ||||||||
| Federal National Mortgage Assoc. |
3.000 | 10/01/42 | 14 | 12,780 | ||||||||
| Federal National Mortgage Assoc. |
3.000 | 12/01/42 | 89 | 79,423 | ||||||||
| Federal National Mortgage Assoc. |
3.000 | 02/01/43 | 168 | 151,063 | ||||||||
| Federal National Mortgage Assoc. |
3.000 | 04/01/43 | 45 | 39,942 | ||||||||
| Federal National Mortgage Assoc. |
3.000 | 08/01/43 | 129 | 115,590 | ||||||||
| Federal National Mortgage Assoc. |
3.000 | 01/01/47 | 147 | 130,582 | ||||||||
| Federal National Mortgage Assoc. |
3.000 | 02/01/47 | 99 | 88,122 | ||||||||
| Federal National Mortgage Assoc. |
3.000 | 01/01/50 | 279 | 245,690 | ||||||||
| Federal National Mortgage Assoc. |
3.500 | 08/01/31 | 25 | 24,302 | ||||||||
| Federal National Mortgage Assoc. |
3.500 | 10/01/32 | 11 | 10,537 | ||||||||
| Federal National Mortgage Assoc. |
3.500 | 06/01/33 | 16 | 15,151 | ||||||||
| Federal National Mortgage Assoc. |
3.500 | 01/01/42 | 62 | 57,432 | ||||||||
| Federal National Mortgage Assoc. |
3.500 | 03/01/42 | 61 | 57,222 | ||||||||
| Federal National Mortgage Assoc. |
3.500 | 10/01/42 | 175 | 163,207 | ||||||||
| Federal National Mortgage Assoc. |
3.500 | 11/01/42 | 41 | 38,102 | ||||||||
| Federal National Mortgage Assoc. |
3.500 | 08/01/43 | 56 | 51,614 | ||||||||
| Federal National Mortgage Assoc. |
3.500 | 03/01/45 | 98 | 90,644 | ||||||||
| Federal National Mortgage Assoc. |
3.500 | 01/01/46 | 19 | 17,347 | ||||||||
| Federal National Mortgage Assoc. |
3.500 | 12/01/46 | 182 | 167,032 | ||||||||
| Federal National Mortgage Assoc. |
3.500 | 01/01/47 | 39 | 36,241 | ||||||||
| Federal National Mortgage Assoc. |
3.500 | 09/01/47 | 58 | 53,783 | ||||||||
| Federal National Mortgage Assoc. |
4.000 | 01/01/41 | 112 | 107,589 | ||||||||
See Notes to Financial Statements.
72
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Interest Rate |
Maturity Date |
Principal Amount (000)# |
Value | ||||||||
| U.S. GOVERNMENT AGENCY OBLIGATIONS (Continued) |
||||||||||||
| Federal National Mortgage Assoc. |
4.000% | 04/01/41 | 62 | $ | 59,115 | |||||||
| Federal National Mortgage Assoc. |
4.000 | 02/01/47 | 59 | 56,129 | ||||||||
| Federal National Mortgage Assoc. |
4.000 | 04/01/48 | 101 | 96,052 | ||||||||
| Federal National Mortgage Assoc. |
4.000 | 12/01/48 | 91 | 86,452 | ||||||||
| Federal National Mortgage Assoc. |
4.000 | 03/01/49 | 192 | 182,424 | ||||||||
| Federal National Mortgage Assoc. |
4.000 | 04/01/52 | 224 | 209,108 | ||||||||
| Federal National Mortgage Assoc. |
4.336(s) | 03/17/31 | 50 | 35,486 | ||||||||
| Federal National Mortgage Assoc. |
4.500 | 03/01/41 | 52 | 50,936 | ||||||||
| Federal National Mortgage Assoc. |
4.500 | 02/01/44 | 49 | 48,350 | ||||||||
| Federal National Mortgage Assoc. |
4.500 | 01/01/45 | 54 | 52,887 | ||||||||
| Federal National Mortgage Assoc. |
4.500 | 04/01/48 | 29 | 28,504 | ||||||||
| Federal National Mortgage Assoc. |
4.500 | 05/01/48 | 9 | 8,862 | ||||||||
| Federal National Mortgage Assoc. |
4.500 | 08/01/48 | 12 | 11,228 | ||||||||
| Federal National Mortgage Assoc. |
4.500 | 02/01/49 | 9 | 9,184 | ||||||||
| Federal National Mortgage Assoc. |
4.500 | 06/01/52 | 108 | 103,346 | ||||||||
| Federal National Mortgage Assoc. |
4.500 | 07/01/52 | 246 | 235,235 | ||||||||
| Federal National Mortgage Assoc. |
5.000 | 11/01/35 | 72 | 72,011 | ||||||||
| Federal National Mortgage Assoc. |
5.000 | 06/01/40 | 14 | 14,394 | ||||||||
| Federal National Mortgage Assoc. |
5.000 | 03/01/42 | 29 | 28,932 | ||||||||
| Federal National Mortgage Assoc. |
5.500 | 11/01/52 | 355 | 353,319 | ||||||||
| Federal National Mortgage Assoc. |
6.625 | 11/15/30 | 40 | 46,001 | ||||||||
| Government National Mortgage Assoc. |
2.500 | 03/20/43 | 7 | 6,183 | ||||||||
| Government National Mortgage Assoc. |
2.500 | 12/20/46 | 12 | 10,626 | ||||||||
| Government National Mortgage Assoc. |
2.500 | 05/20/51 | 419 | 362,163 | ||||||||
| Government National Mortgage Assoc. |
2.500 | 10/20/51 | 239 | 205,810 | ||||||||
| Government National Mortgage Assoc. |
3.000 | 01/20/43 | 63 | 57,440 | ||||||||
| Government National Mortgage Assoc. |
3.000 | 04/20/45 | 25 | 22,808 | ||||||||
| Government National Mortgage Assoc. |
3.000 | 07/20/46 | 44 | 40,041 | ||||||||
| Government National Mortgage Assoc. |
3.000 | 09/20/46 | 45 | 40,704 | ||||||||
| Government National Mortgage Assoc. |
3.000 | 03/20/49 | 53 | 47,310 | ||||||||
| Government National Mortgage Assoc. |
3.000 | 06/20/51 | 87 | 77,707 | ||||||||
| Government National Mortgage Assoc. |
3.000 | 08/20/51 | 220 | 196,783 | ||||||||
| Government National Mortgage Assoc. |
3.500 | 12/20/42 | 128 | 119,549 | ||||||||
| Government National Mortgage Assoc. |
3.500 | 01/20/44 | 35 | 32,698 | ||||||||
| Government National Mortgage Assoc. |
3.500 | 04/20/45 | 18 | 17,136 | ||||||||
| Government National Mortgage Assoc. |
3.500 | 07/20/46 | 79 | 74,005 | ||||||||
| Government National Mortgage Assoc. |
3.500 | 08/20/46 | 121 | 112,717 | ||||||||
| Government National Mortgage Assoc. |
3.500 | 09/20/46 | 19 | 17,478 | ||||||||
| Government National Mortgage Assoc. |
3.500 | 07/20/47 | 51 | 47,695 | ||||||||
| Government National Mortgage Assoc. |
3.500 | 11/20/47 | 34 | 31,404 | ||||||||
| Government National Mortgage Assoc. |
4.000 | 12/20/45 | 55 | 52,371 | ||||||||
| Government National Mortgage Assoc. |
4.000 | 10/20/46 | 3 | 3,032 | ||||||||
See Notes to Financial Statements.
73
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Interest Rate |
Maturity Date |
Principal Amount (000)# |
Value | ||||||||
| U.S. GOVERNMENT AGENCY OBLIGATIONS (Continued) |
||||||||||||
| Government National Mortgage Assoc. |
4.000% | 03/20/47 | 26 | $ | 24,483 | |||||||
| Government National Mortgage Assoc. |
4.000 | 07/20/47 | 32 | 30,787 | ||||||||
| Government National Mortgage Assoc. |
4.000 | 09/20/47 | 84 | 80,275 | ||||||||
| Government National Mortgage Assoc. |
4.000 | 03/20/49 | 13 | 12,577 | ||||||||
| Government National Mortgage Assoc. |
4.500 | 04/20/41 | 11 | 11,129 | ||||||||
| Government National Mortgage Assoc. |
4.500 | 03/20/44 | 29 | 29,007 | ||||||||
| Government National Mortgage Assoc. |
4.500 | 12/20/44 | 27 | 26,871 | ||||||||
| Government National Mortgage Assoc. |
4.500 | 11/20/46 | 14 | 13,579 | ||||||||
| Government National Mortgage Assoc. |
4.500 | 01/20/47 | 4 | 4,370 | ||||||||
| Government National Mortgage Assoc. |
5.000 | 04/20/45 | 22 | 21,965 | ||||||||
| Government National Mortgage Assoc. |
5.500 | 12/15/33 | 8 | 8,228 | ||||||||
| Tennessee Valley Authority, Sr. Unsec’d. Notes |
0.750 | 05/15/25 | 25 | 23,146 | ||||||||
| Tennessee Valley Authority, Sr. Unsec’d. Notes |
1.500 | 09/15/31 | 40 | 32,108 | ||||||||
|
|
|
|||||||||||
| TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS |
13,183,536 | |||||||||||
|
|
|
|||||||||||
| U.S. TREASURY OBLIGATIONS 33.6% |
||||||||||||
| U.S. Treasury Bonds |
1.250 | 05/15/50 | 1,005 | 548,039 | ||||||||
| U.S. Treasury Bonds |
1.375 | 11/15/40 | 330 | 215,995 | ||||||||
| U.S. Treasury Bonds |
1.750 | 08/15/41 | 515 | 355,051 | ||||||||
| U.S. Treasury Bonds |
2.000 | 02/15/50 | 355 | 236,352 | ||||||||
| U.S. Treasury Bonds |
2.250 | 05/15/41 | 1,515 | 1,143,352 | ||||||||
| U.S. Treasury Bonds |
2.375 | 05/15/51 | 65 | 46,922 | ||||||||
| U.S. Treasury Bonds |
2.500 | 02/15/46 | 135 | 101,292 | ||||||||
| U.S. Treasury Bonds |
2.750 | 08/15/47 | 155 | 121,336 | ||||||||
| U.S. Treasury Bonds |
3.625 | 02/15/53 | 135 | 125,951 | ||||||||
| U.S. Treasury Bonds |
3.875 | 05/15/43 | 70 | 66,916 | ||||||||
| U.S. Treasury Bonds |
4.000 | 11/15/42 | 325 | 316,570 | ||||||||
| U.S. Treasury Bonds |
4.000 | 11/15/52 | 80 | 79,962 | ||||||||
| U.S. Treasury Notes |
0.375 | 01/31/26 | 285 | 256,455 | ||||||||
| U.S. Treasury Notes |
0.750 | 04/30/26 | 20 | 18,045 | ||||||||
| U.S. Treasury Notes |
0.875 | 06/30/26 | 1,110 | 1,001,602 | ||||||||
| U.S. Treasury Notes |
1.250 | 11/30/26 | 990 | 893,552 | ||||||||
| U.S. Treasury Notes |
1.250 | 12/31/26 | 215 | 193,769 | ||||||||
| U.S. Treasury Notes |
1.500 | 11/30/28 | 886 | 773,291 | ||||||||
| U.S. Treasury Notes |
1.750 | 03/15/25 | 1,345 | 1,275,070 | ||||||||
| U.S. Treasury Notes |
2.000 | 08/15/25 | 285 | 269,214 | ||||||||
| U.S. Treasury Notes |
2.625 | 02/15/29 | 325 | 300,346 | ||||||||
| U.S. Treasury Notes |
2.750 | 07/31/27 | 1,675 | 1,579,211 | ||||||||
| U.S. Treasury Notes |
2.750 | 05/31/29 | 315 | 292,261 | ||||||||
| U.S. Treasury Notes |
2.875 | 05/15/28 | 500 | 471,172 | ||||||||
See Notes to Financial Statements.
74
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Interest Rate |
Maturity Date |
Principal Amount (000)# |
Value | ||||||||
| U.S. TREASURY OBLIGATIONS (Continued) |
||||||||||||
| U.S. Treasury Notes |
2.875% | 05/15/32 | 450 | $ | 413,367 | |||||||
| U.S. Treasury Notes |
3.000 | 07/15/25 | 275 | 265,182 | ||||||||
| U.S. Treasury Notes |
3.125 | 11/15/28 | 65 | 61,786 | ||||||||
| U.S. Treasury Notes |
3.375 | 05/15/33 | 90 | 85,823 | ||||||||
| U.S. Treasury Notes |
4.000 | 06/30/28 | 130 | 128,964 | ||||||||
| U.S. Treasury Notes |
4.125 | 07/31/28 | 100 | 99,820 | ||||||||
| U.S. Treasury Notes |
4.125 | 11/15/32 | 405 | 409,619 | ||||||||
| U.S. Treasury Notes |
4.250 | 12/31/24 | 715 | 705,392 | ||||||||
| U.S. Treasury Notes |
4.250 | 05/31/25 | 1,830 | 1,806,768 | ||||||||
| U.S. Treasury Strips Coupon |
1.225(s) | 02/15/41 | 15 | 7,055 | ||||||||
| U.S. Treasury Strips Coupon |
1.371(s) | 05/15/42 | 55 | 24,256 | ||||||||
| U.S. Treasury Strips Coupon |
1.394(s) | 11/15/41 | 20 | 9,041 | ||||||||
| U.S. Treasury Strips Coupon |
1.450(s) | 08/15/42 | 15 | 6,554 | ||||||||
| U.S. Treasury Strips Coupon |
1.463(s) | 11/15/42 | 35 | 15,157 | ||||||||
| U.S. Treasury Strips Coupon |
2.045(s) | 11/15/36 | 45 | 26,000 | ||||||||
| U.S. Treasury Strips Coupon |
2.230(s) | 05/15/39 | 50 | 25,711 | ||||||||
| U.S. Treasury Strips Coupon |
2.271(s) | 08/15/39 | 185 | 93,909 | ||||||||
| U.S. Treasury Strips Coupon |
2.350(s) | 05/15/44 | 140 | 56,935 | ||||||||
| U.S. Treasury Strips Coupon |
2.444(s) | 02/15/36 | 65 | 38,827 | ||||||||
| U.S. Treasury Strips Coupon |
3.277(s) | 08/15/41 | 35 | 15,996 | ||||||||
|
|
|
|||||||||||
| TOTAL U.S. TREASURY OBLIGATIONS |
14,977,888 | |||||||||||
|
|
|
|||||||||||
| TOTAL LONG-TERM INVESTMENTS |
43,485,737 | |||||||||||
|
|
|
|||||||||||
| Shares |
||||||||||||
| SHORT-TERM INVESTMENT 1.6% |
||||||||||||
| AFFILIATED MUTUAL FUND |
||||||||||||
| PGIM Core Government Money Market Fund |
726,361 | 726,361 | ||||||||||
|
|
|
|||||||||||
| TOTAL INVESTMENTS 99.3% |
44,212,098 | |||||||||||
| Other assets in excess of liabilities |
0.7% | 317,308 | ||||||||||
|
|
|
|||||||||||
| NET ASSETS 100.0% |
$ | 44,529,406 | ||||||||||
|
|
|
|||||||||||
Below is a list of the abbreviation(s) used in the annual report:
# Principal amount is shown in U.S. dollars unless otherwise stated.
See Notes to Financial Statements.
75
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2023
| (cc) | Variable rate instrument. The rate shown is based on the latest available information as of July 31, 2023. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description. |
| (ff) | Variable rate security. Security may be issued at a fixed coupon rate, which converts to a variable rate at a specified date. Rate shown is the rate in effect as of period end. |
| (s) | Represents zero coupon bond or principal only security. Rate represents yield to maturity at purchase date. |
| (wj) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Government Money Market Fund. |
Fair Value Measurements:
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.
Level 1—unadjusted quoted prices generally in active markets for identical securities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
The following is a summary of the inputs used as of July 31, 2023 in valuing such portfolio securities:
| Level 1 | Level 2 | Level 3 | ||||||||||||
| Investments in Securities |
||||||||||||||
| Assets |
||||||||||||||
| Long-Term Investments |
||||||||||||||
| Asset-Backed Security |
||||||||||||||
| Credit Cards |
$ | — | $ | 95,469 | $— | |||||||||
| Commercial Mortgage-Backed Securities |
— | 3,121,046 | — | |||||||||||
| Corporate Bonds |
— | 10,896,971 | — | |||||||||||
| Municipal Bonds |
— | 385,893 | — | |||||||||||
| Sovereign Bonds |
— | 824,934 | — | |||||||||||
| U.S. Government Agency Obligations |
— | 13,183,536 | — | |||||||||||
| U.S. Treasury Obligations. |
— | 14,977,888 | — | |||||||||||
| Short-Term Investment |
||||||||||||||
| Affiliated Mutual Fund |
726,361 | — | — | |||||||||||
|
|
|
|
|
|
||||||||||
| Total |
$ | 726,361 | $ | 43,485,737 | $— | |||||||||
|
|
|
|
|
|
||||||||||
Industry Classification:
The industry classification of investments and other assets in excess of liabilities shown as a percentage of net assets as of July 31, 2023 were as follows:
| U.S. Treasury Obligations |
33.6 | % | ||
| U.S. Government Agency Obligations |
29.6 | |||
| Commercial Mortgage-Backed Securities |
7.0 |
| Banks |
6.0 | % | ||
| Electric |
3.5 | |||
| Sovereign Bonds |
1.9 |
See Notes to Financial Statements.
76
PGIM Core Conservative Bond Fund
Schedule of Investments (continued)
as of July 31, 2023
Industry Classification (continued):
| Healthcare-Services |
1.7 | % | ||
| Affiliated Mutual Fund |
1.6 | |||
| Pipelines |
1.5 | |||
| Pharmaceuticals |
1.3 | |||
| Municipal Bonds |
0.9 | |||
| Real Estate Investment Trusts (REITs) |
0.8 | |||
| Mining |
0.8 | |||
| Media |
0.7 | |||
| Aerospace & Defense |
0.7 | |||
| Software |
0.7 | |||
| Insurance |
0.6 | |||
| Telecommunications |
0.6 | |||
| Agriculture |
0.6 | |||
| Biotechnology |
0.5 | |||
| Beverages |
0.4 | |||
| Commercial Services |
0.4 | |||
| Semiconductors |
0.4 | |||
| Miscellaneous Manufacturing |
0.4 | |||
| Gas |
0.3 | |||
| Chemicals |
0.3 | |||
| Diversified Financial Services |
0.3 | |||
| Oil & Gas |
0.3 |
| Building Materials |
0.2 | % | ||
| Credit Cards |
0.2 | |||
| Computers |
0.2 | |||
| Machinery-Diversified |
0.2 | |||
| Auto Manufacturers |
0.2 | |||
| Airlines |
0.2 | |||
| Retail |
0.1 | |||
| Lodging |
0.1 | |||
| Packaging & Containers |
0.1 | |||
| Electronics |
0.1 | |||
| Entertainment |
0.1 | |||
| Transportation |
0.1 | |||
| Healthcare-Products |
0.1 | |||
| Iron/Steel |
0.0 | * | ||
| Foods |
0.0 | * | ||
|
|
|
|||
| 99.3 | ||||
| Other assets in excess of liabilities |
0.7 | |||
|
|
|
|||
| 100.0 | % | |||
|
|
|
|||
| * | Less than 0.05% |
See Notes to Financial Statements.
77
PGIM Core Conservative Bond Fund
Statement of Assets & Liabilities
as of July 31, 2023
| Assets |
||||
| Investments at value: |
||||
| Unaffiliated investments (cost $48,545,081) |
$ | 43,485,737 | ||
| Affiliated investments (cost $726,361) |
726,361 | |||
| Receivable for investments sold |
341,641 | |||
| Dividends and interest receivable |
263,453 | |||
| Receivable for Fund shares sold |
91,427 | |||
| Due from Manager |
1,293 | |||
| Prepaid expenses and other assets |
101 | |||
|
|
|
|||
| Total Assets |
44,910,013 | |||
|
|
|
|||
| Liabilities |
||||
| Payable for investments purchased |
284,411 | |||
| Audit fee payable |
55,550 | |||
| Custodian and accounting fees payable |
19,619 | |||
| Accrued expenses and other liabilities |
17,724 | |||
| Payable for Fund shares purchased |
2,378 | |||
| Trustees’ fees payable |
846 | |||
| Affiliated transfer agent fee payable |
79 | |||
|
|
|
|||
| Total Liabilities |
380,607 | |||
|
|
|
|||
| Net Assets |
$ | 44,529,406 | ||
|
|
|
|||
| Net assets were comprised of: |
||||
| Paid-in capital |
$ | 53,631,563 | ||
| Total distributable earnings (loss) |
(9,102,157 | ) | ||
|
|
|
|||
| Net assets, July 31, 2023 |
$ | 44,529,406 | ||
|
|
|
|||
| Class R6 |
||||
| Net asset value, offering price and redemption price per share, ($44,529,406 ÷ 5,205,810 shares of beneficial interest issued and outstanding) |
$ | 8.55 | ||
|
|
|
|||
See Notes to Financial Statements.
78
PGIM Core Conservative Bond Fund
Statement of Operations
Year Ended July 31, 2023
| Net Investment Income (Loss) |
||||
| Income |
||||
| Interest income |
$ | 1,513,103 | ||
| Unaffiliated dividend income |
29,891 | |||
| Affiliated dividend income |
13,346 | |||
|
|
|
|||
| Total income |
1,556,340 | |||
|
|
|
|||
| Expenses |
||||
| Management fee |
132,998 | |||
| Audit fee |
55,550 | |||
| Professional fees |
37,674 | |||
| Custodian and accounting fees |
36,514 | |||
| Shareholders’ reports |
16,701 | |||
| Trustees’ fees |
10,116 | |||
| Fund data services |
8,893 | |||
| Transfer agent’s fees and expenses (including affiliated expense of $ 531) |
679 | |||
| Registration fees |
421 | |||
| Miscellaneous |
13,970 | |||
|
|
|
|||
| Total expenses |
313,516 | |||
| Less: Fee waiver and/or expense reimbursement |
(65,982 | ) | ||
|
|
|
|||
| Net expenses |
247,534 | |||
|
|
|
|||
| Net investment income (loss) |
1,308,806 | |||
|
|
|
|||
| Realized And Unrealized Gain (Loss) On Investments |
||||
| Net realized gain (loss) on investment transactions |
(2,081,573 | ) | ||
| Net change in unrealized appreciation (depreciation) on investments |
(1,044,366 | ) | ||
|
|
|
|||
| Net gain (loss) on investment transactions |
(3,125,939 | ) | ||
|
|
|
|||
| Net Increase (Decrease) In Net Assets Resulting From Operations |
$ | (1,817,133 | ) | |
|
|
|
|||
See Notes to Financial Statements.
79
PGIM Core Conservative Bond Fund
Statements of Changes in Net Assets
| Year Ended July 31, |
||||||||||
| 2023 | 2022 | |||||||||
| Increase (Decrease) in Net Assets |
||||||||||
| Operations |
||||||||||
| Net investment income (loss) |
$ | 1,308,806 | $ | 870,799 | ||||||
| Net realized gain (loss) on investment transactions |
(2,081,573 | ) | (1,011,792 | ) | ||||||
| Net change in unrealized appreciation (depreciation) on investments |
(1,044,366 | ) | (6,139,343 | ) | ||||||
|
|
|
|
|
|||||||
| Net increase (decrease) in net assets resulting from operations |
(1,817,133 | ) | (6,280,336 | ) | ||||||
|
|
|
|
|
|||||||
| Dividends and Distributions |
||||||||||
| Distributions from distributable earnings |
||||||||||
| Class R6 |
(1,499,460 | ) | (1,404,487 | ) | ||||||
| Tax return of capital distributions |
||||||||||
| Class R6 |
(480 | ) | — | |||||||
|
|
|
|
|
|||||||
| Total dividends and distributions |
(1,499,940 | ) | (1,404,487 | ) | ||||||
|
|
|
|
|
|||||||
| Fund share transactions |
||||||||||
| Net proceeds from shares sold (957,777 and 4,134,711 shares, respectively) |
8,266,722 | 40,966,836 | ||||||||
| Net asset value of shares issued in reinvestment of dividends and distributions (174,137 and 142,730 shares, respectively) |
1,499,940 | 1,388,737 | ||||||||
| Cost of shares purchased (1,576,977 and 4,666,383 shares, respectively) |
(13,605,604 | ) | (45,765,768 | ) | ||||||
|
|
|
|
|
|||||||
| Net increase (decrease) in net assets from Fund share transactions |
(3,838,942 | ) | (3,410,195 | ) | ||||||
|
|
|
|
|
|||||||
| Total increase (decrease) |
(7,156,015 | ) | (11,095,018 | ) | ||||||
| Net Assets: |
||||||||||
| Beginning of year |
51,685,421 | 62,780,439 | ||||||||
|
|
|
|
|
|||||||
| End of year |
$ | 44,529,406 | $ | 51,685,421 | ||||||
|
|
|
|
|
|||||||
See Notes to Financial Statements.
80
PGIM Core Conservative Bond Fund
Financial Highlights
| Class R6 Shares |
| |||||||||||||||||||
| Year Ended July 31, | ||||||||||||||||||||
| 2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
| Per Share Operating Performance(a): |
||||||||||||||||||||
| Net Asset Value, Beginning of Year |
$9.15 | $10.39 | $10.81 | $10.12 | $9.66 | |||||||||||||||
| Income (loss) from investment operations: |
||||||||||||||||||||
| Net investment income (loss) |
0.23 | 0.15 | 0.13 | 0.22 | 0.25 | |||||||||||||||
| Net realized and unrealized gain (loss) on investment transactions |
(0.57 | ) | (1.16 | ) | (0.25 | ) | 0.73 | 0.49 | ||||||||||||
| Total from investment operations |
(0.34 | ) | (1.01 | ) | (0.12 | ) | 0.95 | 0.74 | ||||||||||||
| Less Dividends and Distributions: |
||||||||||||||||||||
| Dividends from net investment income |
(0.26 | ) | (0.20 | ) | (0.21 | ) | (0.26 | ) | (0.28 | ) | ||||||||||
| Tax return of capital distributions |
(- | )(b) | - | - | - | - | ||||||||||||||
| Distributions from net realized gains |
- | (0.03 | ) | (0.09 | ) | - | - | |||||||||||||
| Total dividends and distributions |
(0.26 | ) | (0.23 | ) | (0.30 | ) | (0.26 | ) | (0.28 | ) | ||||||||||
| Net asset value, end of year |
$8.55 | $9.15 | $10.39 | $10.81 | $10.12 | |||||||||||||||
| Total Return(c): |
(3.66 | )% | (9.79 | )% | (1.07 | )% | 9.50 | % | 7.74 | % | ||||||||||
|
|
||||||||||||||||||||
| Ratios/Supplemental Data: |
||||||||||||||||||||
| Net assets, end of year (000) |
$44,529 | $51,685 | $62,780 | $57,963 | $46,905 | |||||||||||||||
| Average net assets (000) |
$49,258 | $58,320 | $62,768 | $50,192 | $42,668 | |||||||||||||||
| Ratios to average net assets(d): |
||||||||||||||||||||
| Expenses after waivers and/or expense reimbursement |
0.50 | % | 0.50 | % | 0.50 | % | 0.50 | % | 0.50 | % | ||||||||||
| Expenses before waivers and/or expense reimbursement |
0.63 | % | 0.55 | % | 0.55 | % | 0.67 | % | 0.77 | % | ||||||||||
| Net investment income (loss) |
2.66 | % | 1.49 | % | 1.28 | % | 2.07 | % | 2.55 | % | ||||||||||
| Portfolio turnover rate(e)(f) |
191 | % | 171 | % | 194 | % | 174 | % | 107 | % | ||||||||||
| (a) | Calculated based on average shares outstanding during the year. |
| (b) | Amount rounds to zero. |
| (c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. |
| (d) | Does not include expenses of the underlying funds in which the Fund invests. |
| (e) | The Fund accounts for mortgage dollar roll transactions, when applicable, as purchases and sales which, as a result, can increase its portfolio turnover rate. |
| (f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
81
PGIM TIPS Fund
Schedule of Investments
as of July 31, 2023
| Description | Interest Rate |
Maturity Date |
Principal Amount (000)# |
Value | ||||||||
| LONG-TERM INVESTMENTS 97.8% |
||||||||||||
| U.S. TREASURY OBLIGATIONS |
||||||||||||
| U.S. Treasury Inflation Indexed Bonds, TIPS |
0.125% | 01/15/30 | 7,435 | $ | 6,692,261 | |||||||
| U.S. Treasury Inflation Indexed Bonds, TIPS |
0.125 | 01/15/31 | 3,359 | 2,985,712 | ||||||||
| U.S. Treasury Inflation Indexed Bonds, TIPS |
0.125 | 07/15/31 | 227 | 201,146 | ||||||||
| U.S. Treasury Inflation Indexed Bonds, TIPS |
0.125 | 02/15/51 | 1,250 | 807,981 | ||||||||
| U.S. Treasury Inflation Indexed Bonds, TIPS |
0.250 | 01/15/25 | 5,014 | 4,809,674 | ||||||||
| U.S. Treasury Inflation Indexed Bonds, TIPS |
0.250 | 02/15/50 | 2,833 | 1,923,645 | ||||||||
| U.S. Treasury Inflation Indexed Bonds, TIPS |
0.375 | 01/15/27 | 4,501 | 4,232,724 | ||||||||
| U.S. Treasury Inflation Indexed Bonds, TIPS |
0.500 | 01/15/28 | 5,881 | 5,523,691 | ||||||||
| U.S. Treasury Inflation Indexed Bonds, TIPS |
0.625 | 01/15/26 | 12,396 | 11,836,564 | ||||||||
| U.S. Treasury Inflation Indexed Bonds, TIPS |
0.625 | 02/15/43 | 2,123 | 1,705,663 | ||||||||
| U.S. Treasury Inflation Indexed Bonds, TIPS |
0.750 | 02/15/42 | 4,058 | 3,390,337 | ||||||||
| U.S. Treasury Inflation Indexed Bonds, TIPS |
0.875 | 01/15/29 | 7,672 | 7,300,385 | ||||||||
| U.S. Treasury Inflation Indexed Bonds, TIPS |
0.875 | 02/15/47 | 132 | 108,417 | ||||||||
| U.S. Treasury Inflation Indexed Bonds, TIPS |
1.000 | 02/15/48 | 43 | 36,271 | ||||||||
| U.S. Treasury Inflation Indexed Bonds, TIPS |
1.000 | 02/15/49 | 2,006 | 1,682,667 | ||||||||
| U.S. Treasury Inflation Indexed Bonds, TIPS |
2.000 | 01/15/26 | 7,976 | 7,870,712 | ||||||||
| U.S. Treasury Inflation Indexed Bonds, TIPS |
2.125 | 02/15/40 | 964 | 1,017,782 | ||||||||
| U.S. Treasury Inflation Indexed Bonds, TIPS |
2.125 | 02/15/41 | 2,174 | 2,297,905 | ||||||||
| U.S. Treasury Inflation Indexed Bonds, TIPS |
2.375 | 01/15/25 | 97 | 95,674 | ||||||||
| U.S. Treasury Inflation Indexed Bonds, TIPS |
2.375 | 01/15/27 | 664 | 667,548 | ||||||||
| U.S. Treasury Inflation Indexed Bonds, TIPS |
2.500 | 01/15/29 | 1,317 | 1,361,970 | ||||||||
| U.S. Treasury Inflation Indexed Bonds, TIPS |
3.375 | 04/15/32 | 10,777 | 12,200,044 | ||||||||
| U.S. Treasury Inflation Indexed Bonds, TIPS |
3.625 | 04/15/28 | 38 | 40,431 | ||||||||
|
|
|
|||||||||||
| TOTAL LONG-TERM INVESTMENTS |
78,789,204 | |||||||||||
|
|
|
|||||||||||
| Shares |
||||||||||||
| SHORT-TERM INVESTMENT 4.3% |
||||||||||||
| AFFILIATED MUTUAL FUND |
||||||||||||
| PGIM Core Government Money Market Fund |
3,433,071 | 3,433,071 | ||||||||||
|
|
|
|||||||||||
| TOTAL INVESTMENTS 102.1% |
82,222,275 | |||||||||||
| Liabilities in excess of other assets (2.1)% |
(1,700,713 | ) | ||||||||||
|
|
|
|||||||||||
| NET ASSETS 100.0% |
$ | 80,521,562 | ||||||||||
|
|
|
|||||||||||
See Notes to Financial Statements.
82
PGIM TIPS Fund
Schedule of Investments (continued)
as of July 31, 2023
See the Glossary for a list of the abbreviation(s) used in the annual report.
| # | Principal amount is shown in U.S. dollars unless otherwise stated. |
| (wj) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Government Money Market Fund. |
Fair Value Measurements:
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.
Level 1—unadjusted quoted prices generally in active markets for identical securities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
The following is a summary of the inputs used as of July 31, 2023 in valuing such portfolio securities:
| Level 1 | Level 2 | Level 3 |
||||||||||||||||
| Investments in Securities |
||||||||||||||||||
| Assets |
||||||||||||||||||
| Long-Term Investments |
||||||||||||||||||
| U.S. Treasury Obligations |
$ | — | $ | 78,789,204 | $ | — | ||||||||||||
| Short-Term Investment |
||||||||||||||||||
| Affiliated Mutual Fund |
3,433,071 | — | — | |||||||||||||||
|
|
|
|
|
|
|
|||||||||||||
| Total |
$ | 3,433,071 | $ | 78,789,204 | $ | — | ||||||||||||
|
|
|
|
|
|
|
|||||||||||||
Sector Allocations:
The sector allocations of portfolio holdings and liabilities in excess of other assets shown as a percentage of net assets as of July 31, 2023 were as follows:
| U.S. Treasury Obligations |
97.8 | % |
| Affiliated Mutual Fund | 4.3 | % | ||
|
|
|
|||
| 102.1 | ||||
| Liabilities in excess of other assets | (2.1 | ) | ||
|
|
|
|||
| 100.0 | % | |||
|
|
|
|||
See Notes to Financial Statements.
83
PGIM TIPS Fund
Statement of Assets & Liabilities
as of July 31, 2023
| Assets |
||||
| Investments at value: |
||||
| Unaffiliated investments (cost $83,886,793) |
$ | 78,789,204 | ||
| Affiliated investments (cost $3,433,071) |
3,433,071 | |||
| Receivable for investments sold |
2,300,144 | |||
| Receivable for Fund shares sold |
303,035 | |||
| Interest receivable |
190,908 | |||
| Prepaid expenses |
176 | |||
|
|
|
|||
| Total Assets |
85,016,538 | |||
|
|
|
|||
| Liabilities |
||||
| Payable for investments purchased |
4,410,699 | |||
| Accrued expenses and other liabilities |
66,204 | |||
| Management fee payable |
12,356 | |||
| Payable for Fund shares purchased |
4,760 | |||
| Trustees’ fees payable |
874 | |||
| Affiliated transfer agent fee payable |
83 | |||
|
|
|
|||
| Total Liabilities |
4,494,976 | |||
|
|
|
|||
| Net Assets |
$ | 80,521,562 | ||
|
|
|
|||
|
|
||||
| Net assets were comprised of: |
||||
| Paid-in capital |
$ | 96,157,786 | ||
| Total distributable earnings (loss) |
(15,636,224 | ) | ||
|
|
|
|||
| Net assets, July 31, 2023 |
$ | 80,521,562 | ||
|
|
|
|||
| Class R6 |
||||
| Net asset value, offering price and redemption price per share, ($80,521,562 ÷ 9,474,258 shares of beneficial interest issued and outstanding) |
$ |
8.50 |
| |
|
|
|
|||
See Notes to Financial Statements.
84
PGIM TIPS Fund
Statement of Operations
Year Ended July 31, 2023
| Net Investment Income (Loss) |
||||
| Income |
||||
| Interest income |
$ | 3,804,808 | ||
| Affiliated dividend income |
28,463 | |||
| Unaffiliated dividend income |
18,803 | |||
|
|
|
|||
| Total income |
3,852,074 | |||
|
|
|
|||
| Expenses |
||||
| Management fee |
193,435 | |||
| Professional fees |
35,208 | |||
| Custodian and accounting fees |
34,530 | |||
| Audit fee |
32,300 | |||
| Shareholders’ reports |
13,579 | |||
| Trustees’ fees |
10,970 | |||
| Fund data services |
8,893 | |||
| SEC registration fees |
788 | |||
| Transfer agent’s fees and expenses (including affiliated expense of $ 518) |
669 | |||
| Registration fees |
422 | |||
| Miscellaneous |
11,620 | |||
|
|
|
|||
| Total expenses |
342,414 | |||
| Less: Fee waiver and/or expense reimbursement |
(3,338 | ) | ||
|
|
|
|||
| Net expenses |
339,076 | |||
|
|
|
|||
| Net investment income (loss) |
3,512,998 | |||
|
|
|
|||
| Realized And Unrealized Gain (Loss) On Investments |
||||
| Net realized gain (loss) on investment transactions |
(6,682,362 | ) | ||
| Net change in unrealized appreciation (depreciation) on investments |
(1,652,352 | ) | ||
|
|
|
|||
| Net gain (loss) on investment transactions |
(8,334,714 | ) | ||
|
|
|
|||
| Net Increase (Decrease) In Net Assets Resulting From Operations |
$ | (4,821,716 | ) | |
|
|
|
|||
See Notes to Financial Statements.
85
PGIM TIPS Fund
Statements of Changes in Net Assets
| Year Ended July 31, |
||||||||||
| 2023 | 2022 | |||||||||
| Increase (Decrease) in Net Assets |
||||||||||
| Operations |
||||||||||
| Net investment income (loss) |
$ | 3,512,998 | $ | 5,582,965 | ||||||
| Net realized gain (loss) on investment transactions |
(6,682,362 | ) | (842,753 | ) | ||||||
| Net change in unrealized appreciation (depreciation) on investments |
(1,652,352 | ) | (8,085,886 | ) | ||||||
|
|
|
|
|
|||||||
| Net increase (decrease) in net assets resulting from operations |
(4,821,716 | ) | (3,345,674 | ) | ||||||
|
|
|
|
|
|||||||
| Dividends and Distributions |
||||||||||
| Distributions from distributable earnings |
||||||||||
| Class R6 |
(4,062,626 | ) | (8,160,025 | ) | ||||||
|
|
|
|
|
|||||||
| Fund share transactions |
||||||||||
| Net proceeds from shares sold (2,328,137 and 4,731,082 shares, respectively) |
20,157,393 | 47,044,350 | ||||||||
| Net asset value of shares issued in reinvestment of dividends and distributions (463,474 and 812,739 shares, respectively) |
4,062,626 | 8,158,022 | ||||||||
| Cost of shares purchased (2,919,634 and 3,680,859 shares, respectively) |
(25,476,194 | ) | (36,827,372 | ) | ||||||
|
|
|
|
|
|||||||
| Net increase (decrease) in net assets from Fund share transactions |
(1,256,175 | ) | 18,375,000 | |||||||
|
|
|
|
|
|||||||
| Total increase (decrease) |
(10,140,517 | ) | 6,869,301 | |||||||
| Net Assets: |
||||||||||
| Beginning of year |
90,662,079 | 83,792,778 | ||||||||
|
|
|
|
|
|||||||
| End of year |
$ | 80,521,562 | $ | 90,662,079 | ||||||
|
|
|
|
|
|||||||
See Notes to Financial Statements.
86
PGIM TIPS Fund
Financial Highlights
| Class R6 Shares |
| |||||||||||||||||||
| Year Ended July 31, | ||||||||||||||||||||
| 2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
| Per Share Operating Performance(a): |
||||||||||||||||||||
| Net Asset Value, Beginning of Year |
$9.44 | $10.83 | $10.67 | $9.87 | $9.61 | |||||||||||||||
| Income (loss) from investment operations: |
||||||||||||||||||||
| Net investment income (loss) |
0.36 | 0.68 | 0.36 | 0.01 | 0.21 | |||||||||||||||
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | (0.88 | ) | (1.08 | ) | 0.32 | 0.94 | 0.30 | |||||||||||||
| Total from investment operations |
(0.52 | ) | (0.40 | ) | 0.68 | 0.95 | 0.51 | |||||||||||||
| Less Dividends and Distributions: |
||||||||||||||||||||
| Dividends from net investment income |
(0.42 | ) | (0.78 | ) | (0.43 | ) | (0.15 | ) | (0.25 | ) | ||||||||||
| Distributions from net realized gains |
- | (0.21 | ) | (0.09 | ) | - | - | |||||||||||||
| Total dividends and distributions |
(0.42 | ) | (0.99 | ) | (0.52 | ) | (0.15 | ) | (0.25 | ) | ||||||||||
| Net asset value, end of year |
$8.50 | $9.44 | $10.83 | $10.67 | $9.87 | |||||||||||||||
| Total Return(b): |
(5.52 | )% | (3.91 | )% | 6.49 | % | 9.83 | % | 5.38 | % | ||||||||||
|
|
||||||||||||||||||||
| Ratios/Supplemental Data: |
||||||||||||||||||||
| Net assets, end of year (000) |
$80,522 | $90,662 | $83,793 | $48,736 | $35,938 | |||||||||||||||
| Average net assets (000) |
$84,102 | $83,845 | $79,151 | $38,800 | $30,412 | |||||||||||||||
| Ratios to average net assets(c): |
||||||||||||||||||||
| Expenses after waivers and/or expense reimbursement |
0.40 | % | 0.39 | % | 0.40 | % | 0.40 | % | 0.40 | % | ||||||||||
| Expenses before waivers and/or expense reimbursement |
0.40 | % | 0.39 | % | 0.41 | % | 0.58 | % | 0.72 | % | ||||||||||
| Net investment income (loss) |
4.18 | % | 6.66 | % | 3.39 | % | 0.12 | % | 2.17 | % | ||||||||||
| Portfolio turnover rate(d) |
68 | % | 73 | % | 72 | % | 102 | % | 40 | % | ||||||||||
| (a) | Calculated based on average shares outstanding during the year. |
| (b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. |
| (c) | Does not include expenses of the underlying funds in which the Fund invests. |
| (d) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
87
PGIM Quant Solutions Commodity Strategies Fund
Consolidated Schedule of Investments
as of July 31, 2023
| Description | Interest Rate |
Maturity Date |
Principal Amount (000)# |
Value | ||||||||
| SHORT-TERM INVESTMENTS 99.8% |
||||||||||||
| U.S. TREASURY OBLIGATIONS(n) 84.7% |
||||||||||||
| U.S. Treasury Bills |
4.725% | 11/02/23 | 20,000 | $ | 19,728,012 | |||||||
| U.S. Treasury Bills |
4.756 | 11/02/23(bb)(k) | 9,000 | 8,877,605 | ||||||||
| U.S. Treasury Bills |
5.389 | 01/11/24 | 24,000 | 23,428,064 | ||||||||
|
|
|
|||||||||||
| TOTAL U.S. TREASURY OBLIGATIONS |
52,033,681 | |||||||||||
|
|
|
|||||||||||
| Shares |
||||||||||||
| UNAFFILIATED FUND 15.1% |
||||||||||||
| Dreyfus Government Cash Management (Institutional Shares)(bb) |
9,275,315 | 9,275,315 | ||||||||||
|
|
|
|||||||||||
| TOTAL INVESTMENTS 99.8% |
61,308,996 | |||||||||||
| Other assets in excess of liabilities(z) 0.2% |
107,290 | |||||||||||
|
|
|
|||||||||||
| NET ASSETS 100.0% |
$ | 61,416,286 | ||||||||||
|
|
|
|||||||||||
See the Glossary for a list of the abbreviation(s) used in the annual report.
| # | Principal amount is shown in U.S. dollars unless otherwise stated. |
| (bb) | Represents security, or a portion thereof, held in the Cayman Subsidiary. |
| (k) | Represents security, or a portion thereof, segregated as collateral for centrally cleared/exchange-traded derivatives. |
| (n) | Rate shown is the effective yield at purchase date. |
| (z) | Includes net unrealized appreciation/(depreciation) and/or market value of the below holdings which are excluded from the Consolidated Schedule of Investments: |
Commodity Futures contracts outstanding at July 31, 2023(1):
| Number |
Type |
Expiration |
Current Notional Amount |
Value/ | ||||||||||||||
| Long Positions: |
|
|||||||||||||||||
| 57 |
Brent Crude | Nov. 2023 | $ | 4,842,150 | $ | 500,437 | ||||||||||||
| 29 |
|
Coffee ’C’ | Sep. 2023 | 1,790,569 | (152,261 | ) | ||||||||||||
| 27 |
Copper | Sep. 2023 | 2,705,400 | 143,989 | ||||||||||||||
| 150 |
Corn | Sep. 2023 | 3,780,000 | (299,116 | ) | |||||||||||||
| 38 |
Cotton No. 2 | Dec. 2023 | 1,609,680 | 63,981 | ||||||||||||||
| 20 |
Gasoline RBOB | Sep. 2023 | 2,432,220 | 382,450 | ||||||||||||||
See Notes to Financial Statements.
88
PGIM Quant Solutions Commodity Strategies Fund
Consolidated Schedule of Investments
(continued)
as of July 31, 2023
Commodity Futures contracts outstanding at July 31, 2023(1) (continued):
| Number |
Type |
Expiration |
Current Notional Amount |
Value/ Unrealized Appreciation (Depreciation) | ||||||||||||||
| Long Positions (cont’d): |
|
|||||||||||||||||
| 45 |
|
Gold 100 OZ |
Dec. 2023 | $ | 9,041,400 | $ | 176,728 | |||||||||||
| 26 |
Hard Red Winter Wheat |
Sep. 2023 | 1,056,575 | 7,771 | ||||||||||||||
| 42 |
Lean Hogs |
Oct. 2023 | 1,444,800 | 70,522 | ||||||||||||||
| 20 |
Live Cattle |
Oct. 2023 | 1,436,200 | 12,443 | ||||||||||||||
| 12 |
LME Lead |
Sep. 2023 | 646,500 | 37,847 | ||||||||||||||
| 15 |
LME Nickel |
Sep. 2023 | 1,998,180 | 79,864 | ||||||||||||||
| 33 |
LME PRI Aluminum |
Sep. 2023 | 1,871,108 | 2,407 | ||||||||||||||
| 34 |
LME Zinc |
Sep. 2023 | 2,180,514 | 226,608 | ||||||||||||||
| 20 |
Low Sulphur Gas Oil |
Sep. 2023 | 1,720,000 | 331,457 | ||||||||||||||
| 146 |
Natural Gas |
Sep. 2023 | 3,845,640 | 311,184 | ||||||||||||||
| 12 |
NY Harbor ULSD |
Sep. 2023 | 1,504,692 | 306,020 | ||||||||||||||
| 18 |
Silver |
Sep. 2023 | 2,247,480 | 99,587 | ||||||||||||||
| 42 |
Soybean |
Nov. 2023 | 2,796,675 | 291,395 | ||||||||||||||
| 46 |
Soybean Meal |
Dec. 2023 | 1,821,140 | 119,724 | ||||||||||||||
| 88 |
Soybean Oil |
Dec. 2023 | 3,167,472 | 450,459 | ||||||||||||||
| 67 |
Sugar No. 11 |
Oct. 2023 | 1,809,214 | (5,185 | ) | |||||||||||||
| 18 |
Wheat |
Sep. 2023 | 599,175 | 30,780 | ||||||||||||||
| 75 |
WTI Crude |
Sep. 2023 | 6,135,000 | 688,639 | ||||||||||||||
|
|
|
|||||||||||||||||
| 3,877,730 | ||||||||||||||||||
|
|
|
|||||||||||||||||
| Short Positions: |
|
|||||||||||||||||
| 1 |
LME Lead |
Sep. 2023 | 53,875 | (2,727 | ) | |||||||||||||
| 12 |
LME PRI Aluminum |
Sep. 2023 | 680,403 | (23,481 | ) | |||||||||||||
| 11 |
LME Zinc |
Sep. 2023 | 705,460 | (42,656 | ) | |||||||||||||
|
|
|
|||||||||||||||||
| (68,864 | ) | |||||||||||||||||
|
|
|
|||||||||||||||||
| $ | 3,808,866 | |||||||||||||||||
|
|
|
|||||||||||||||||
| (1) | Represents positions held in the Cayman Subsidiary. |
Summary of Collateral for Centrally Cleared/Exchange-traded Derivatives:
Cash and securities segregated as collateral, including pending settlement for closed positions, to cover requirements for centrally cleared/exchange-traded derivatives are listed by broker as follows:
| Broker |
Cash and/or Foreign Currency | Securities Market Value | ||||||||
| MSC |
$ | 277,862 | $ | 6,904,804 | ||||||
|
|
|
|
|
|||||||
See Notes to Financial Statements.
89
PGIM Quant Solutions Commodity Strategies Fund
Consolidated Schedule of Investments
(continued)
as of July 31, 2023
Fair Value Measurements:
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.
Level 1—unadjusted quoted prices generally in active markets for identical securities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
The following is a summary of the inputs used as of July 31, 2023 in valuing such portfolio securities:
| Level 1 | Level 2 | Level 3 |
||||||||||||||||
| Investments in Securities |
||||||||||||||||||
| Assets |
||||||||||||||||||
| Short-Term Investments |
||||||||||||||||||
| U.S. Treasury Obligations |
$ | — | $ | 52,033,681 | $— | |||||||||||||
| Unaffiliated Fund |
9,275,315 | — | — | |||||||||||||||
|
|
|
|
|
|
||||||||||||||
| Total |
$ | 9,275,315 | $ | 52,033,681 | $— | |||||||||||||
|
|
|
|
|
|
|
|||||||||||||
| Other Financial Instruments* |
||||||||||||||||||
| Assets |
||||||||||||||||||
| Commodity Futures Contracts |
$ | 4,334,292 | $ | — | $— | |||||||||||||
|
|
|
|
|
|
|
|||||||||||||
| Liabilities |
||||||||||||||||||
| Commodity Futures Contracts |
$ | (525,426 | ) | $ | — | $— | ||||||||||||
|
|
|
|
|
|
|
|||||||||||||
| * | Other financial instruments are derivative instruments not reflected in the Consolidated 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. |
Sector Allocation:
The sector allocation of portfolio holdings and other assets in excess of liabilities shown as a percentage of net assets as of July 31, 2023 were as follows:
| U.S. Treasury Obligations |
84.7 | % | ||
| Unaffiliated Fund |
15.1 | |||
|
|
|
|||
| 99.8 | ||||
| Other assets in excess of liabilities |
0.2 | |||
|
|
|
|||
| 100.0 | % | |||
|
|
|
|||
See Notes to Financial Statements.
90
PGIM Quant Solutions Commodity Strategies Fund
Consolidated Schedule of Investments
(continued)
as of July 31, 2023
Effects of Derivative Instruments on the Financial Statements and Primary Underlying Risk Exposure:
The Fund invested in derivative instruments during the reporting period. The primary type of risk associated with these derivative instruments is commodity risk. See the Notes to Consolidated Financial Statements for additional detail regarding these derivative instruments and their risks. The effect of such derivative instruments on the Fund’s financial position and financial performance as reflected in the Consolidated Statement of Assets and Liabilities and Consolidated Statement of Operations is presented in the summary below.
Fair values of derivative instruments as of July 31, 2023 as presented in the Consolidated Statement of Assets and Liabilities:
| Asset Derivatives |
Liability Derivatives |
|||||||||||||||||||||||
| Derivatives not accounted for as hedging instruments, carried at fair value |
Consolidated Statement of Assets and Liabilities Location |
Fair Value |
Consolidated Statement of Assets and Liabilities Location |
Fair Value |
||||||||||||||||||||
| Commodity contracts |
Due from/to broker-variation margin futures | $ | 4,334,292 | * | Due from/to broker-variation margin futures | $ | 525,426 | * | ||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| * | Includes cumulative appreciation (depreciation) as reported in the schedule of open futures and centrally cleared swap contracts. Only unsettled variation margin receivable (payable) is reported within the Consolidated Statement of Assets and Liabilities. |
The effects of derivative instruments on the Consolidated Statement of Operations for the year ended July 31, 2023 are as follows:
| Amount of Realized Gain (Loss) on Derivatives Recognized in Income | ||||
| Derivatives not accounted for as hedging instruments, carried at fair value |
Futures | |||
| Commodity contracts |
$ | (20,907,161 | ) | |
|
|
|
|||
| Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income | ||||
| Derivatives not accounted for as hedging instruments, carried at fair value |
Futures | |||
| Commodity contracts |
$ | 9,461,307 | ||
|
|
|
|||
For the year ended July 31, 2023, the Fund’s average volume of derivative activities is as follows:
| Derivative Contract Type | Average Volume of Derivative Activities* | |
| Futures Contracts - Long Positions (1) |
$78,650,057 |
See Notes to Financial Statements.
91
PGIM Quant Solutions Commodity Strategies Fund
Consolidated Schedule of Investments
(continued)
as of July 31, 2023
| Derivative Contract Type | Average Volume of Derivative Activities* | |
| Futures Contracts - Short Positions (1) |
$ 4,352,763 |
| * | Average volume is based on average quarter end balances as noted for the year ended July 31, 2023. |
| (1) | Notional Amount in USD. |
See Notes to Financial Statements.
92
PGIM Quant Solutions Commodity Strategies Fund
Consolidated Statement of Assets & Liabilities
as of July 31, 2023
| Assets |
||||
| Unaffiliated investments (cost $61,363,288) |
$ | 61,308,996 | ||
| Receivable for Fund shares sold |
1,014,508 | |||
| Deposit with broker for centrally cleared/exchange-traded derivatives |
277,862 | |||
| Interest receivable |
43,708 | |||
| Prepaid expenses |
73 | |||
|
|
|
|||
| Total Assets |
62,645,147 | |||
|
|
|
|||
| Liabilities |
||||
| Payable for Fund shares purchased |
1,067,884 | |||
| Due to broker—variation margin futures |
71,604 | |||
| Accrued expenses and other liabilities |
44,183 | |||
| Audit fees payable |
28,300 | |||
| Management fee payable |
15,630 | |||
| Trustees’ fees payable |
857 | |||
| Affiliated transfer agent fee payable |
403 | |||
|
|
|
|||
| Total Liabilities |
1,228,861 | |||
|
|
|
|||
| Net Assets |
$ | 61,416,286 | ||
|
|
|
|||
|
|
||||
| Net assets were comprised of: |
||||
| Paid-in capital |
$ | 77,906,085 | ||
| Total distributable earnings (loss) |
(16,489,799 | ) | ||
|
|
|
|||
| Net assets, July 31, 2023 |
$ | 61,416,286 | ||
|
|
|
|||
| Class Z |
||||
| Net asset value, offering price and redemption price per share, ($737,558 ÷ 102,089 shares of beneficial interest issued and outstanding) |
$ | 7.22 | ||
|
|
|
|||
| Class R6 |
||||
| Net asset value, offering price and redemption price per share, ($60,678,728 ÷ 8,413,711 shares of beneficial interest issued and outstanding) |
$ | 7.21 | ||
|
|
|
|||
See Notes to Financial Statements.
93
PGIM Quant Solutions Commodity Strategies Fund
Consolidated Statement of Operations
Year Ended July 31, 2023
| Net Investment Income (Loss) |
||||
| Income |
||||
| Interest income |
$ | 2,316,642 | ||
| Unaffiliated dividend income |
432,800 | |||
|
|
|
|||
| Total income |
2,749,442 | |||
|
|
|
|||
| Expenses |
||||
| Management fee |
346,129 | |||
| Professional fees |
54,304 | |||
| Custodian and accounting fees |
36,265 | |||
| Audit fee |
28,300 | |||
| Registration fees(a) |
25,851 | |||
| Shareholders’ reports |
24,665 | |||
| Fund data services |
16,796 | |||
| Transfer agent’s fees and expenses (including affiliated expense of $ 2,632)(a) |
13,820 | |||
| Trustees’ fees |
10,844 | |||
| SEC registration fees |
908 | |||
| Miscellaneous |
11,568 | |||
|
|
|
|||
| Total expenses |
569,450 | |||
| Less: Fee waiver and/or expense reimbursement(a) |
(81,571 | ) | ||
|
|
|
|||
| Net expenses |
487,879 | |||
|
|
|
|||
| Net investment income (loss) |
2,261,563 | |||
|
|
|
|||
| Realized And Unrealized Gain (Loss) On Investments |
||||
| Net realized gain (loss) on: |
||||
| Investment transactions |
(291,559 | ) | ||
| Futures transactions |
(20,907,161 | ) | ||
|
|
|
|||
| (21,198,720 | ) | |||
|
|
|
|||
| Net change in unrealized appreciation (depreciation) on: |
||||
| Investments |
51,056 | |||
| Futures |
9,461,307 | |||
|
|
|
|||
| 9,512,363 | ||||
|
|
|
|||
| Net gain (loss) on investment transactions |
(11,686,357 | ) | ||
|
|
|
|||
| Net Increase (Decrease) In Net Assets Resulting From Operations |
$ | (9,424,794 | ) | |
|
|
|
|||
| (a) | Class specific expenses and waivers were as follows: |
| Class Z |
Class R6 | |||
| Registration fees |
25,441 | 410 | ||
| Transfer agent’s fees and expenses |
11,138 | 2,682 | ||
| Fee waiver and/or expense reimbursement |
(35,776) | (45,795) |
See Notes to Financial Statements.
94
PGIM Quant Solutions Commodity Strategies Fund
Consolidated Statements of Changes in Net Assets
| Year Ended July 31, |
||||||||||
| 2023 | 2022 | |||||||||
| Increase (Decrease) in Net Assets |
||||||||||
| Operations |
||||||||||
| Net investment income (loss) |
$ | 2,261,563 | $ | (120,051 | ) | |||||
| Net realized gain (loss) on investment transactions |
(21,198,720 | ) | 24,360,060 | |||||||
| Net change in unrealized appreciation (depreciation) on investments |
9,512,363 | (7,097,037 | ) | |||||||
|
|
|
|
|
|||||||
| Net increase (decrease) in net assets resulting from operations |
(9,424,794 | ) | 17,142,972 | |||||||
|
|
|
|
|
|||||||
| Dividends and Distributions |
||||||||||
| Distributions from distributable earnings |
||||||||||
| Class Z |
(1,647,571 | ) | — | |||||||
| Class R6 |
(17,608,485 | ) | (19,775,119 | ) | ||||||
|
|
|
|
|
|||||||
| Total dividends and distributions |
(19,256,056 | ) | (19,775,119 | ) | ||||||
|
|
|
|
|
|||||||
| Fund share transactions |
||||||||||
| Net proceeds from shares sold |
29,022,918 | 38,749,715 | ||||||||
| Net asset value of shares issued in reinvestment of dividends and distributions |
19,256,056 | 19,775,119 | ||||||||
| Cost of shares purchased |
(39,292,909 | ) | (36,502,919 | ) | ||||||
|
|
|
|
|
|||||||
| Net increase (decrease) in net assets from Fund share transactions |
8,986,065 | 22,021,915 | ||||||||
|
|
|
|
|
|||||||
| Total increase (decrease) |
(19,694,785 | ) | 19,389,768 | |||||||
| Net Assets: |
||||||||||
| Beginning of year |
81,111,071 | 61,721,303 | ||||||||
|
|
|
|
|
|||||||
| End of year |
$ | 61,416,286 | $ | 81,111,071 | ||||||
|
|
|
|
|
|||||||
See Notes to Financial Statements.
95
PGIM Quant Solutions Commodity Strategies Fund
Consolidated Financial Highlights
| Class Z Shares |
|
||||||||||||||
| Year Ended July 31, 2023 |
December 14, 2021(a) through July 31, 2022 |
| |||||||||||||
| Per Share Operating Performance(b): |
|||||||||||||||
| Net Asset Value, Beginning of Period |
$10.53 | $7.94 | |||||||||||||
| Income (loss) from investment operations: |
|||||||||||||||
| Net investment income (loss) |
0.24 | 0.01 | (c) | ||||||||||||
| Net realized and unrealized gain (loss) on investment transactions |
(1.23 | ) | 2.58 | ||||||||||||
| Total from investment operations |
(0.99 | ) | 2.59 | ||||||||||||
| Less Dividends and Distributions: |
|||||||||||||||
| Dividends from net investment income |
(2.32 | ) | - | ||||||||||||
| Net asset value, end of period |
$7.22 | $10.53 | |||||||||||||
| Total Return(d): |
(10.36 | )% | 32.62 | % | |||||||||||
|
|
|||||||||||||||
| Ratios/Supplemental Data: |
|||||||||||||||
| Net assets, end of period (000) |
$738 | $532 | |||||||||||||
| Average net assets (000) |
$5,071 | $424 | |||||||||||||
| Ratios to average net assets(e): |
|||||||||||||||
| Expenses after waivers and/or expense reimbursement |
0.70 | % | 0.70 | %(f) | |||||||||||
| Expenses before waivers and/or expense reimbursement |
1.41 | % | 9.94 | %(f) | |||||||||||
| Net investment income (loss) |
3.10 | % | 0.08 | %(f) | |||||||||||
| Portfolio turnover rate(g) |
0 | % | 0 | % | |||||||||||
| (a) | Commencement of offering. |
| (b) | Calculated based on average shares outstanding during the period. |
| (c) | The per share amount of net investment income (loss) does not directly correlate to the amounts reported in the Statement of Operations due to class specific expenses. |
| (d) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
| (e) | Does not include expenses of the underlying funds in which the Fund invests. |
| (f) | Annualized. |
| (g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
96
PGIM Quant Solutions Commodity Strategies Fund
Consolidated Financial Highlights (continued)
| Class R6 Shares |
| |||||||||||||||||||
| Year Ended July 31, | ||||||||||||||||||||
| 2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
| Per Share Operating Performance(a): |
||||||||||||||||||||
| Net Asset Value, Beginning of Year |
$10.53 | $12.02 | $8.34 | $9.44 | $10.31 | |||||||||||||||
| Income (loss) from investment operations: |
||||||||||||||||||||
| Net investment income (loss) |
0.24 | (0.02 | ) | (0.05 | ) | 0.01 | 0.14 | |||||||||||||
| Net realized and unrealized gain (loss) on investment transactions |
(1.22 | ) | 2.45 | 3.73 | (1.01 | ) | (0.74 | ) | ||||||||||||
| Total from investment operations |
(0.98 | ) | 2.43 | 3.68 | (1.00 | ) | (0.60 | ) | ||||||||||||
| Less Dividends and Distributions: |
||||||||||||||||||||
| Dividends from net investment income |
(2.34 | ) | (3.92 | ) | - | (0.10 | ) | (0.27 | ) | |||||||||||
| Tax return of capital distributions |
- | - | - | (- | )(b) | - | ||||||||||||||
| Total dividends and distributions |
(2.34 | ) | (3.92 | ) | - | (0.10 | ) | (0.27 | ) | |||||||||||
| Net asset value, end of year |
$7.21 | $10.53 | $12.02 | $8.34 | $9.44 | |||||||||||||||
| Total Return(c): |
(10.42 | )% | 30.61 | % | 44.12 | % | (10.74 | )% | (5.69 | )% | ||||||||||
|
|
||||||||||||||||||||
| Ratios/Supplemental Data: |
||||||||||||||||||||
| Net assets, end of year (000) |
$60,679 | $80,579 | $61,721 | $38,553 | $21,123 | |||||||||||||||
| Average net assets (000) |
$69,187 | $67,445 | $53,974 | $28,308 | $19,634 | |||||||||||||||
| Ratios to average net assets(d): |
||||||||||||||||||||
| Expenses after waivers and/or expense reimbursement |
0.65 | % | 0.62 | % | 0.64 | % | 0.80 | % | 0.80 | % | ||||||||||
| Expenses before waivers and/or expense reimbursement |
0.72 | % | 0.68 | % | 0.71 | % | 0.94 | % | 1.10 | % | ||||||||||
| Net investment income (loss) |
3.04 | % | (0.18 | )% | (0.53 | )% | 0.17 | % | 1.42 | % | ||||||||||
| Portfolio turnover rate(e) |
0 | % | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||||
| (a) | Calculated based on average shares outstanding during the year. |
| (b) | Amount rounds to zero. |
| (c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. |
| (d) | Does not include expenses of the underlying funds in which the Fund invests. |
| (e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
97
PGIM Quant Solutions Mid-Cap Core Fund
Schedule of Investments
as of July 31, 2023
| Description | Shares | Value | ||||||
| LONG-TERM INVESTMENTS 100.2% |
||||||||
| COMMON STOCKS 99.0% |
||||||||
| Aerospace & Defense 1.9% |
||||||||
| BWX Technologies, Inc. |
60 | $ | 4,140 | |||||
| Curtiss-Wright Corp. |
180 | 34,445 | ||||||
| Hexcel Corp. |
1,440 | 101,779 | ||||||
| Woodward, Inc. |
895 | 107,740 | ||||||
|
|
|
|||||||
| 248,104 | ||||||||
| Automobile Components 2.6% |
||||||||
| Adient PLC* |
296 | 12,598 | ||||||
| Autoliv, Inc. (Sweden) |
50 | 5,046 | ||||||
| BorgWarner, Inc. |
850 | 39,525 | ||||||
| Gentex Corp. |
3,325 | 111,653 | ||||||
| Goodyear Tire & Rubber Co. (The)* |
1,250 | 20,100 | ||||||
| Lear Corp. |
510 | 78,928 | ||||||
| Modine Manufacturing Co.* |
700 | 26,292 | ||||||
| Visteon Corp.* |
310 | 47,768 | ||||||
|
|
|
|||||||
| 341,910 | ||||||||
| Automobiles 0.8% |
||||||||
| Harley-Davidson, Inc. |
2,625 | 101,351 | ||||||
| Banks 5.1% |
||||||||
| Associated Banc-Corp. |
2,700 | 51,165 | ||||||
| Cadence Bank |
1,400 | 35,070 | ||||||
| Dime Community Bancshares, Inc. |
600 | 13,440 | ||||||
| East West Bancorp, Inc. |
983 | 61,152 | ||||||
| First Foundation, Inc. |
3,400 | 24,854 | ||||||
| Flushing Financial Corp. |
500 | 7,890 | ||||||
| FNB Corp. |
3,881 | 49,638 | ||||||
| Fulton Financial Corp. |
2,075 | 29,672 | ||||||
| Heartland Financial USA, Inc. |
1,000 | 34,340 | ||||||
| HomeStreet, Inc. |
1,600 | 14,720 | ||||||
| New York Community Bancorp, Inc. |
2,700 | 37,449 | ||||||
| Old National Bancorp |
1,250 | 21,288 | ||||||
| Pinnacle Financial Partners, Inc. |
690 | 52,371 | ||||||
| Popular, Inc. (Puerto Rico) |
180 | 13,059 | ||||||
| Synovus Financial Corp. |
1,840 | 62,376 | ||||||
| Valley National Bancorp |
2,918 | 29,939 | ||||||
See Notes to Financial Statements.
98
PGIM Quant Solutions Mid-Cap Core Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Banks (cont’d.) |
||||||||
| Webster Financial Corp. |
1,675 | $ | 79,261 | |||||
| Wintrust Financial Corp. |
671 | 56,606 | ||||||
|
|
|
|||||||
| 674,290 | ||||||||
| Beverages 1.2% |
||||||||
| Celsius Holdings, Inc.* |
590 | 85,373 | ||||||
| Coca-Cola Consolidated, Inc. |
120 | 76,009 | ||||||
|
|
|
|||||||
| 161,382 | ||||||||
| Biotechnology 1.8% |
||||||||
| Neurocrine Biosciences, Inc.* |
830 | 84,569 | ||||||
| United Therapeutics Corp.* |
630 | 152,913 | ||||||
|
|
|
|||||||
| 237,482 | ||||||||
| Broadline Retail 0.7% |
||||||||
| Macy’s, Inc. |
5,850 | 97,051 | ||||||
| Building Products 3.2% |
||||||||
| Builders FirstSource, Inc.* |
230 | 33,219 | ||||||
| Carlisle Cos., Inc. |
35 | 9,702 | ||||||
| Fortune Brands Innovations, Inc. |
510 | 36,246 | ||||||
| Lennox International, Inc. |
125 | 45,930 | ||||||
| Masonite International Corp.* |
230 | 24,046 | ||||||
| Owens Corning |
1,174 | 164,348 | ||||||
| UFP Industries, Inc. |
1,035 | 106,357 | ||||||
|
|
|
|||||||
| 419,848 | ||||||||
| Capital Markets 2.6% |
||||||||
| Affiliated Managers Group, Inc. |
540 | 74,866 | ||||||
| Federated Hermes, Inc. |
100 | 3,383 | ||||||
| Interactive Brokers Group, Inc. (Class A Stock) |
290 | 25,326 | ||||||
| Invesco Ltd. |
300 | 5,040 | ||||||
| Janus Henderson Group PLC |
2,200 | 64,570 | ||||||
| Jefferies Financial Group, Inc. |
1,521 | 55,957 | ||||||
| SEI Investments Co. |
1,300 | 81,887 | ||||||
| Stifel Financial Corp. |
363 | 23,065 | ||||||
| Virtu Financial, Inc. (Class A Stock) |
300 | 5,568 | ||||||
|
|
|
|||||||
| 339,662 | ||||||||
See Notes to Financial Statements.
99
PGIM Quant Solutions Mid-Cap Core Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Chemicals 1.9% |
||||||||
| AdvanSix, Inc. |
200 | $ | 8,022 | |||||
| Avient Corp. |
1,175 | 47,623 | ||||||
| Axalta Coating Systems Ltd.* |
3,300 | 105,600 | ||||||
| Cabot Corp. |
166 | 11,786 | ||||||
| Olin Corp. |
1,190 | 68,639 | ||||||
| Rayonier Advanced Materials, Inc.* |
1,700 | 8,041 | ||||||
|
|
|
|||||||
| 249,711 | ||||||||
| Commercial Services & Supplies 0.6% |
||||||||
| Brink’s Co. (The) |
175 | 12,768 | ||||||
| Clean Harbors, Inc.* |
118 | 19,619 | ||||||
| Enviri Corp.* |
500 | 4,715 | ||||||
| Stericycle, Inc.* |
200 | 8,498 | ||||||
| Tetra Tech, Inc. |
165 | 27,919 | ||||||
|
|
|
|||||||
| 73,519 | ||||||||
| Communications Equipment 0.3% |
||||||||
| Extreme Networks, Inc.* |
1,600 | 42,544 | ||||||
| Construction & Engineering 2.7% |
||||||||
| AECOM |
1,394 | 121,278 | ||||||
| EMCOR Group, Inc. |
763 | 164,076 | ||||||
| Fluor Corp.* |
500 | 15,490 | ||||||
| Sterling Infrastructure, Inc.* |
200 | 11,998 | ||||||
| Valmont Industries, Inc. |
135 | 35,741 | ||||||
|
|
|
|||||||
| 348,583 | ||||||||
| Construction Materials 1.0% |
||||||||
| Eagle Materials, Inc. |
712 | 131,271 | ||||||
| Consumer Staples Distribution & Retail 1.6% |
||||||||
| BJ’s Wholesale Club Holdings, Inc.* |
1,330 | 88,192 | ||||||
| Performance Food Group Co.* |
125 | 7,470 | ||||||
| US Foods Holding Corp.* |
2,800 | 119,644 | ||||||
|
|
|
|||||||
| 215,306 | ||||||||
| Containers & Packaging 1.6% |
||||||||
| Berry Global Group, Inc. |
1,420 | 93,109 | ||||||
See Notes to Financial Statements.
100
PGIM Quant Solutions Mid-Cap Core Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Containers & Packaging (cont’d.) |
||||||||
| Graphic Packaging Holding Co. |
2,900 | $ | 70,180 | |||||
| Sonoco Products Co. |
400 | 23,456 | ||||||
| Westrock Co. |
550 | 18,310 | ||||||
|
|
|
|||||||
| 205,055 | ||||||||
| Diversified Consumer Services 0.7% |
||||||||
| Frontdoor, Inc.* |
500 | 17,460 | ||||||
| Graham Holdings Co. (Class B Stock) |
100 | 58,675 | ||||||
| Perdoceo Education Corp.* |
1,425 | 19,024 | ||||||
|
|
|
|||||||
| 95,159 | ||||||||
| Electric Utilities 1.0% |
||||||||
| ALLETE, Inc. |
475 | 27,279 | ||||||
| Hawaiian Electric Industries, Inc. |
625 | 23,994 | ||||||
| NRG Energy, Inc. |
1,700 | 64,583 | ||||||
| Portland General Electric Co. |
400 | 19,068 | ||||||
|
|
|
|||||||
| 134,924 | ||||||||
| Electrical Equipment 2.9% |
||||||||
| Acuity Brands, Inc. |
489 | 80,802 | ||||||
| EnerSys |
820 | 88,823 | ||||||
| Hubbell, Inc. |
370 | 115,440 | ||||||
| nVent Electric PLC |
1,089 | 57,586 | ||||||
| Vertiv Holdings Co. |
1,300 | 33,813 | ||||||
|
|
|
|||||||
| 376,464 | ||||||||
| Electronic Equipment, Instruments & Components 3.2% |
||||||||
| Arrow Electronics, Inc.* |
110 | 15,680 | ||||||
| Avnet, Inc. |
500 | 24,250 | ||||||
| Belden, Inc. |
1,055 | 101,955 | ||||||
| Crane NXT Co. |
700 | 41,405 | ||||||
| Jabil, Inc. |
793 | 87,761 | ||||||
| TD SYNNEX Corp. |
741 | 73,144 | ||||||
| Vishay Intertechnology, Inc. |
300 | 8,445 | ||||||
| Vontier Corp. |
2,000 | 61,860 | ||||||
|
|
|
|||||||
| 414,500 | ||||||||
See Notes to Financial Statements.
101
PGIM Quant Solutions Mid-Cap Core Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Energy Equipment & Services 0.5% |
||||||||
| ChampionX Corp. |
450 | $ | 16,020 | |||||
| DMC Global, Inc.* |
1,600 | 30,176 | ||||||
| U.S. Silica Holdings, Inc.* |
1,150 | 14,962 | ||||||
|
|
|
|||||||
| 61,158 | ||||||||
| Financial Services 2.1% |
||||||||
| Essent Group Ltd. |
275 | 13,640 | ||||||
| Euronet Worldwide, Inc.* |
595 | 52,283 | ||||||
| MGIC Investment Corp. |
1,200 | 20,088 | ||||||
| Voya Financial, Inc. |
1,515 | 112,504 | ||||||
| Western Union Co. (The) |
3,800 | 46,284 | ||||||
| WEX, Inc.* |
135 | 25,562 | ||||||
|
|
|
|||||||
| 270,361 | ||||||||
| Food Products 1.1% |
||||||||
| Ingredion, Inc. |
1,067 | 118,714 | ||||||
| Pilgrim’s Pride Corp.* |
290 | 7,183 | ||||||
| Post Holdings, Inc.* |
195 | 16,634 | ||||||
|
|
|
|||||||
| 142,531 | ||||||||
| Gas Utilities 1.1% |
||||||||
| National Fuel Gas Co. |
550 | 29,211 | ||||||
| Spire, Inc. |
260 | 16,528 | ||||||
| UGI Corp. |
3,682 | 99,377 | ||||||
|
|
|
|||||||
| 145,116 | ||||||||
| Ground Transportation 1.6% |
||||||||
| Avis Budget Group, Inc.* |
230 | 50,666 | ||||||
| Hertz Global Holdings, Inc.* |
2,300 | 38,755 | ||||||
| Ryder System, Inc. |
1,045 | 106,747 | ||||||
| Saia, Inc.* |
20 | 8,463 | ||||||
|
|
|
|||||||
| 204,631 | ||||||||
| Health Care Equipment & Supplies 3.2% |
||||||||
| DENTSPLY SIRONA, Inc. |
500 | 20,760 | ||||||
| Enovis Corp.* |
1,425 | 91,057 | ||||||
| Haemonetics Corp.* |
1,140 | 105,154 | ||||||
| Integra LifeSciences Holdings Corp.* |
998 | 45,379 | ||||||
See Notes to Financial Statements.
102
PGIM Quant Solutions Mid-Cap Core Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Health Care Equipment & Supplies (cont’d.) |
||||||||
| Lantheus Holdings, Inc.* |
930 | $ | 80,436 | |||||
| Shockwave Medical, Inc.* |
200 | 52,120 | ||||||
| Tactile Systems Technology, Inc.* |
1,200 | 27,492 | ||||||
|
|
|
|||||||
| 422,398 | ||||||||
| Health Care Providers & Services 2.8% |
||||||||
| Chemed Corp. |
57 | 29,702 | ||||||
| Encompass Health Corp. |
1,585 | 104,658 | ||||||
| HealthEquity, Inc.* |
400 | 27,176 | ||||||
| Option Care Health, Inc.* |
200 | 6,756 | ||||||
| Patterson Cos., Inc. |
700 | 23,023 | ||||||
| Progyny, Inc.* |
1,100 | 45,936 | ||||||
| Tenet Healthcare Corp.* |
1,700 | 127,041 | ||||||
|
|
|
|||||||
| 364,292 | ||||||||
| Health Care REITs 0.7% |
||||||||
| Diversified Healthcare Trust |
5,650 | 11,809 | ||||||
| Medical Properties Trust, Inc. |
2,850 | 28,756 | ||||||
| Sabra Health Care REIT, Inc. |
4,000 | 51,960 | ||||||
|
|
|
|||||||
| 92,525 | ||||||||
| Hotel & Resort REITs 0.8% |
||||||||
| Hersha Hospitality Trust (Class A Stock) |
2,950 | 18,467 | ||||||
| Park Hotels & Resorts, Inc. |
6,700 | 91,321 | ||||||
|
|
|
|||||||
| 109,788 | ||||||||
| Hotels, Restaurants & Leisure 2.6% |
||||||||
| Aramark |
1,000 | 40,370 | ||||||
| Boyd Gaming Corp. |
435 | 29,719 | ||||||
| Century Casinos, Inc.* |
3,144 | 24,995 | ||||||
| Hilton Grand Vacations, Inc.* |
800 | 37,200 | ||||||
| Light & Wonder, Inc.* |
650 | 45,695 | ||||||
| Marriott Vacations Worldwide Corp. |
250 | 32,128 | ||||||
| Texas Roadhouse, Inc. |
880 | 98,164 | ||||||
| Wingstop, Inc. |
130 | 21,915 | ||||||
| Wyndham Hotels & Resorts, Inc. |
200 | 15,584 | ||||||
|
|
|
|||||||
| 345,770 | ||||||||
See Notes to Financial Statements.
103
PGIM Quant Solutions Mid-Cap Core Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Household Durables 2.4% |
||||||||
| KB Home |
1,700 | $ | 91,749 | |||||
| Taylor Morrison Home Corp.* |
2,125 | 102,892 | ||||||
| Toll Brothers, Inc. |
1,441 | 115,756 | ||||||
|
|
|
|||||||
| 310,397 | ||||||||
| Household Products 0.6% |
||||||||
| Energizer Holdings, Inc. |
2,300 | 82,110 | ||||||
| Industrial REITs 1.9% |
||||||||
| Americold Realty Trust, Inc. |
2,200 | 71,324 | ||||||
| EastGroup Properties, Inc. |
330 | 58,469 | ||||||
| First Industrial Realty Trust, Inc. |
825 | 42,653 | ||||||
| Rexford Industrial Realty, Inc. |
1,100 | 60,599 | ||||||
| STAG Industrial, Inc. |
600 | 21,780 | ||||||
|
|
|
|||||||
| 254,825 | ||||||||
| Insurance 3.3% |
||||||||
| Brighthouse Financial, Inc.* |
300 | 15,639 | ||||||
| CNA Financial Corp. |
200 | 7,832 | ||||||
| CNO Financial Group, Inc. |
950 | 24,434 | ||||||
| eHealth, Inc.* |
1,400 | 10,584 | ||||||
| Old Republic International Corp. |
200 | 5,514 | ||||||
| Primerica, Inc. |
165 | 35,095 | ||||||
| Reinsurance Group of America, Inc. |
938 | 131,648 | ||||||
| RenaissanceRe Holdings Ltd. (Bermuda) |
150 | 28,014 | ||||||
| RLI Corp. |
70 | 9,339 | ||||||
| Selectquote, Inc.* |
13,775 | 26,035 | ||||||
| Unum Group |
2,975 | 144,615 | ||||||
|
|
|
|||||||
| 438,749 | ||||||||
| Interactive Media & Services 0.8% |
||||||||
| TripAdvisor, Inc.* |
4,550 | 84,858 | ||||||
| Ziff Davis, Inc.* |
220 | 15,954 | ||||||
|
|
|
|||||||
| 100,812 | ||||||||
| IT Services 0.6% |
||||||||
| Kyndryl Holdings, Inc.* |
6,225 | 85,034 | ||||||
See Notes to Financial Statements.
104
PGIM Quant Solutions Mid-Cap Core Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Leisure Products 0.8% |
||||||||
| Brunswick Corp. |
1,060 | $ | 91,488 | |||||
| Polaris, Inc. |
140 | 19,018 | ||||||
|
|
|
|||||||
| 110,506 | ||||||||
| Life Sciences Tools & Services 0.7% |
||||||||
| Bruker Corp. |
695 | 47,760 | ||||||
| Medpace Holdings, Inc.* |
170 | 43,039 | ||||||
|
|
|
|||||||
| 90,799 | ||||||||
| Machinery 5.1% |
||||||||
| AGCO Corp. |
906 | 120,589 | ||||||
| Donaldson Co., Inc. |
1,472 | 92,486 | ||||||
| Esab Corp. |
325 | 22,328 | ||||||
| Graco, Inc. |
550 | 43,631 | ||||||
| ITT, Inc. |
1,224 | 121,910 | ||||||
| Oshkosh Corp. |
990 | 91,149 | ||||||
| Terex Corp. |
1,950 | 114,328 | ||||||
| Timken Co. (The) |
660 | 61,288 | ||||||
| Wabash National Corp. |
200 | 4,736 | ||||||
|
|
|
|||||||
| 672,445 | ||||||||
| Marine Transportation 0.1% |
||||||||
| Kirby Corp.* |
220 | 17,926 | ||||||
| Media 0.6% |
||||||||
| Integral Ad Science Holding Corp.* |
3,600 | 75,060 | ||||||
| Metals & Mining 2.2% |
||||||||
| Cleveland-Cliffs, Inc.* |
2,700 | 47,655 | ||||||
| Commercial Metals Co. |
1,925 | 110,148 | ||||||
| Reliance Steel & Aluminum Co. |
99 | 28,993 | ||||||
| United States Steel Corp. |
4,125 | 105,188 | ||||||
|
|
|
|||||||
| 291,984 | ||||||||
| Mortgage Real Estate Investment Trusts (REITs) 0.1% |
||||||||
| Granite Point Mortgage Trust, Inc. |
1,300 | 7,449 | ||||||
See Notes to Financial Statements.
105
PGIM Quant Solutions Mid-Cap Core Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Multi-Utilities 0.8% |
||||||||
| Black Hills Corp. |
1,450 | $ | 87,478 | |||||
| NiSource, Inc. |
800 | 22,272 | ||||||
|
|
|
|||||||
| 109,750 | ||||||||
| Office REITs 0.1% |
||||||||
| Hudson Pacific Properties, Inc. |
2,950 | 17,317 | ||||||
| Oil, Gas & Consumable Fuels 3.3% |
||||||||
| Antero Midstream Corp. |
4,875 | 58,208 | ||||||
| Chord Energy Corp. |
50 | 7,842 | ||||||
| Equitrans Midstream Corp. |
2,200 | 22,814 | ||||||
| HF Sinclair Corp. |
2,350 | 122,411 | ||||||
| Murphy Oil Corp. |
2,000 | 86,540 | ||||||
| Ovintiv, Inc. |
100 | 4,609 | ||||||
| PBF Energy, Inc. (Class A Stock) |
2,250 | 106,740 | ||||||
| Southwestern Energy Co.* |
4,525 | 29,322 | ||||||
|
|
|
|||||||
| 438,486 | ||||||||
| Passenger Airlines 0.6% |
||||||||
| Alaska Air Group, Inc.* |
900 | 43,767 | ||||||
| JetBlue Airways Corp.* |
3,750 | 29,138 | ||||||
|
|
|
|||||||
| 72,905 | ||||||||
| Personal Care Products 0.4% |
||||||||
| Coty, Inc. (Class A Stock)* |
1,100 | 13,244 | ||||||
| elf Beauty, Inc.* |
350 | 40,852 | ||||||
|
|
|
|||||||
| 54,096 | ||||||||
| Pharmaceuticals 1.2% |
||||||||
| Jazz Pharmaceuticals PLC* |
900 | 117,378 | ||||||
| Perrigo Co. PLC |
1,225 | 44,884 | ||||||
|
|
|
|||||||
| 162,262 | ||||||||
| Professional Services 3.6% |
||||||||
| Concentrix Corp. |
1,053 | 87,652 | ||||||
| Conduent, Inc.* |
1,200 | 4,152 | ||||||
| ExlService Holdings, Inc.* |
380 | 53,561 | ||||||
| Genpact Ltd. |
1,825 | 65,864 | ||||||
See Notes to Financial Statements.
106
PGIM Quant Solutions Mid-Cap Core Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Professional Services (cont’d.) |
||||||||
| Insperity, Inc. |
279 | $ | 32,824 | |||||
| KBR, Inc. |
700 | 43,043 | ||||||
| Paylocity Holding Corp.* |
550 | 124,768 | ||||||
| Science Applications International Corp. |
460 | 55,816 | ||||||
|
|
|
|||||||
| 467,680 | ||||||||
| Real Estate Management & Development 0.9% |
||||||||
| Jones Lang LaSalle, Inc.* |
264 | 43,969 | ||||||
| Zillow Group, Inc. (Class A Stock)* |
600 | 31,932 | ||||||
| Zillow Group, Inc. (Class C Stock)* |
800 | 43,328 | ||||||
|
|
|
|||||||
| 119,229 | ||||||||
| Residential REITs 0.1% |
||||||||
| Veris Residential, Inc. * |
500 | 9,340 | ||||||
| Retail REITs 0.6% |
||||||||
| Kite Realty Group Trust |
1,300 | 29,744 | ||||||
| NNN REIT, Inc. |
500 | 21,340 | ||||||
| RPT Realty |
600 | 6,522 | ||||||
| Spirit Realty Capital, Inc. |
500 | 20,165 | ||||||
|
|
|
|||||||
| 77,771 | ||||||||
| Semiconductors & Semiconductor Equipment 3.2% |
||||||||
| Allegro MicroSystems, Inc. (Japan)* |
2,050 | 105,801 | ||||||
| Amkor Technology, Inc. |
3,170 | 92,215 | ||||||
| Axcelis Technologies, Inc.* |
70 | 14,034 | ||||||
| Cirrus Logic, Inc.* |
420 | 33,936 | ||||||
| Lattice Semiconductor Corp.* |
1,345 | 122,314 | ||||||
| Universal Display Corp. |
330 | 48,140 | ||||||
|
|
|
|||||||
| 416,440 | ||||||||
| Software 3.4% |
||||||||
| ACI Worldwide, Inc.* |
300 | 6,957 | ||||||
| Dynatrace, Inc.* |
2,575 | 140,826 | ||||||
| Manhattan Associates, Inc.* |
424 | 80,823 | ||||||
| NCR Corp.* |
3,450 | 92,736 | ||||||
| Teradata Corp.* |
2,175 | 123,649 | ||||||
|
|
|
|||||||
| 444,991 | ||||||||
See Notes to Financial Statements.
107
PGIM Quant Solutions Mid-Cap Core Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Specialized REITs 1.1% |
||||||||
| EPR Properties |
1,175 | $ | 52,452 | |||||
| Lamar Advertising Co. (Class A Stock) |
901 | 88,929 | ||||||
|
|
|
|||||||
| 141,381 | ||||||||
| Specialty Retail 2.2% |
||||||||
| AutoNation, Inc.* |
490 | 78,880 | ||||||
| Bath & Body Works, Inc. |
100 | 3,706 | ||||||
| Dick’s Sporting Goods, Inc. |
535 | 75,435 | ||||||
| Five Below, Inc.* |
335 | 69,794 | ||||||
| Murphy USA, Inc. |
50 | 15,352 | ||||||
| Valvoline, Inc. |
450 | 17,086 | ||||||
| Williams-Sonoma, Inc. |
230 | 31,887 | ||||||
|
|
|
|||||||
| 292,140 | ||||||||
| Technology Hardware, Storage & Peripherals 0.6% |
||||||||
| Xerox Holdings Corp. |
5,050 | 80,699 | ||||||
| Textiles, Apparel & Luxury Goods 2.3% |
||||||||
| Deckers Outdoor Corp.* |
160 | 86,990 | ||||||
| PVH Corp. |
1,110 | 99,501 | ||||||
| Skechers USA, Inc. (Class A Stock)* |
2,000 | 111,160 | ||||||
|
|
|
|||||||
| 297,651 | ||||||||
| Trading Companies & Distributors 0.7% |
||||||||
| MSC Industrial Direct Co., Inc. (Class A Stock) |
340 | 34,313 | ||||||
| Veritiv Corp. |
88 | 12,331 | ||||||
| WESCO International, Inc. |
285 | 50,038 | ||||||
|
|
|
|||||||
| 96,682 | ||||||||
| Water Utilities 0.7% |
||||||||
| Essential Utilities, Inc. |
2,275 | 96,210 | ||||||
| Wireless Telecommunication Services 0.1% |
||||||||
| Telephone & Data Systems, Inc. |
800 | 6,416 | ||||||
|
|
|
|||||||
| TOTAL COMMON STOCKS |
13,006,228 | |||||||
|
|
|
|||||||
See Notes to Financial Statements.
108
PGIM Quant Solutions Mid-Cap Core Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| UNAFFILIATED EXCHANGE-TRADED FUND 1.2% |
||||||||
| iShares Core S&P Mid-Cap ETF |
572 | $ | 155,813 | |||||
|
|
|
|||||||
| TOTAL LONG-TERM INVESTMENTS |
13,162,041 | |||||||
|
|
|
|||||||
| SHORT-TERM INVESTMENT 0.3% |
||||||||
| AFFILIATED MUTUAL FUND |
||||||||
| PGIM Core Government Money Market Fund |
42,196 | 42,196 | ||||||
|
|
|
|||||||
| TOTAL INVESTMENTS 100.5% |
13,204,237 | |||||||
| Liabilities in excess of other assets (0.5)% |
(65,866 | ) | ||||||
|
|
|
|||||||
| NET ASSETS 100.0% |
$ | 13,138,371 | ||||||
|
|
|
|||||||
See the Glossary for a list of the abbreviation(s) used in the annual report.
| * | Non-income producing security. |
| (wi) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Government Money Market Fund and PGIM Institutional Money Market Fund, if applicable. |
Fair Value Measurements:
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.
Level 1—unadjusted quoted prices generally in active markets for identical securities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
The following is a summary of the inputs used as of July 31, 2023 in valuing such portfolio securities:
| Level 1 | Level 2 | Level 3 | |||||||||||||
| Investments in Securities |
|||||||||||||||
| Assets |
|||||||||||||||
| Long-Term Investments |
|||||||||||||||
| Common Stocks |
|||||||||||||||
| Aerospace & Defense |
$ | 248,104 | $— | $— | |||||||||||
| Automobile Components |
341,910 | — | — | ||||||||||||
| Automobiles |
101,351 | — | — | ||||||||||||
| Banks |
674,290 | — | — | ||||||||||||
See Notes to Financial Statements.
109
PGIM Quant Solutions Mid-Cap Core Fund
Schedule of Investments (continued)
as of July 31, 2023
| Level 1 | Level 2 | Level 3 | |||||||||||||
| Investments in Securities (continued) |
|||||||||||||||
| Assets (continued) |
|||||||||||||||
| Long-Term Investments (continued) |
|||||||||||||||
| Common Stocks (continued) |
|||||||||||||||
| Beverages |
$ | 161,382 | $— | $— | |||||||||||
| Biotechnology |
237,482 | — | — | ||||||||||||
| Broadline Retail |
97,051 | — | — | ||||||||||||
| Building Products |
419,848 | — | — | ||||||||||||
| Capital Markets |
339,662 | — | — | ||||||||||||
| Chemicals |
249,711 | — | — | ||||||||||||
| Commercial Services & Supplies |
73,519 | — | — | ||||||||||||
| Communications Equipment |
42,544 | — | — | ||||||||||||
| Construction & Engineering |
348,583 | — | — | ||||||||||||
| Construction Materials |
131,271 | — | — | ||||||||||||
| Consumer Staples Distribution & Retail |
215,306 | — | — | ||||||||||||
| Containers & Packaging |
205,055 | — | — | ||||||||||||
| Diversified Consumer Services |
95,159 | — | — | ||||||||||||
| Electric Utilities |
134,924 | — | — | ||||||||||||
| Electrical Equipment |
376,464 | — | — | ||||||||||||
| Electronic Equipment, Instruments & Components |
414,500 | — | — | ||||||||||||
| Energy Equipment & Services |
61,158 | — | — | ||||||||||||
| Financial Services |
270,361 | — | — | ||||||||||||
| Food Products |
142,531 | — | — | ||||||||||||
| Gas Utilities |
145,116 | — | — | ||||||||||||
| Ground Transportation |
204,631 | — | — | ||||||||||||
| Health Care Equipment & Supplies |
422,398 | — | — | ||||||||||||
| Health Care Providers & Services |
364,292 | — | — | ||||||||||||
| Health Care REITs |
92,525 | — | — | ||||||||||||
| Hotel & Resort REITs |
109,788 | — | — | ||||||||||||
| Hotels, Restaurants & Leisure |
345,770 | — | — | ||||||||||||
| Household Durables |
310,397 | — | — | ||||||||||||
| Household Products |
82,110 | — | — | ||||||||||||
| Industrial REITs |
254,825 | — | — | ||||||||||||
| Insurance |
438,749 | — | — | ||||||||||||
| Interactive Media & Services |
100,812 | — | — | ||||||||||||
| IT Services |
85,034 | — | — | ||||||||||||
| Leisure Products |
110,506 | — | — | ||||||||||||
| Life Sciences Tools & Services |
90,799 | — | — | ||||||||||||
| Machinery |
672,445 | — | — | ||||||||||||
| Marine Transportation |
17,926 | — | — | ||||||||||||
| Media |
75,060 | — | — | ||||||||||||
| Metals & Mining |
291,984 | — | — | ||||||||||||
| Mortgage Real Estate Investment Trusts (REITs) |
7,449 | — | — | ||||||||||||
| Multi-Utilities |
109,750 | — | — | ||||||||||||
| Office REITs |
17,317 | — | — | ||||||||||||
| Oil, Gas & Consumable Fuels |
438,486 | — | — | ||||||||||||
See Notes to Financial Statements.
110
PGIM Quant Solutions Mid-Cap Core Fund
Schedule of Investments (continued)
as of July 31, 2023
| Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
| Investments in Securities (continued) |
||||||||||||||||||||||||||||
| Assets (continued) |
||||||||||||||||||||||||||||
| Long-Term Investments (continued) |
||||||||||||||||||||||||||||
| Common Stocks (continued) |
||||||||||||||||||||||||||||
| Passenger Airlines |
$ | 72,905 | $— | $— | ||||||||||||||||||||||||
| Personal Care Products |
54,096 | — | — | |||||||||||||||||||||||||
| Pharmaceuticals |
162,262 | — | — | |||||||||||||||||||||||||
| Professional Services |
467,680 | — | — | |||||||||||||||||||||||||
| Real Estate Management & Development |
119,229 | — | — | |||||||||||||||||||||||||
| Residential REITs |
9,340 | — | — | |||||||||||||||||||||||||
| Retail REITs |
77,771 | — | — | |||||||||||||||||||||||||
| Semiconductors & Semiconductor Equipment |
416,440 | — | — | |||||||||||||||||||||||||
| Software |
444,991 | — | — | |||||||||||||||||||||||||
| Specialized REITs |
141,381 | — | — | |||||||||||||||||||||||||
| Specialty Retail |
292,140 | — | — | |||||||||||||||||||||||||
| Technology Hardware, Storage & Peripherals |
80,699 | — | — | |||||||||||||||||||||||||
| Textiles, Apparel & Luxury Goods |
297,651 | — | — | |||||||||||||||||||||||||
| Trading Companies & Distributors |
96,682 | — | — | |||||||||||||||||||||||||
| Water Utilities |
96,210 | — | — | |||||||||||||||||||||||||
| Wireless Telecommunication Services |
6,416 | — | — | |||||||||||||||||||||||||
| Unaffiliated Exchange-Traded Fund |
155,813 | — | — | |||||||||||||||||||||||||
| Short-Term Investment |
||||||||||||||||||||||||||||
| Affiliated Mutual Fund |
42,196 | — | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Total |
$ | 13,204,237 | $— | $— | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||||||
Industry Classification:
The industry classification of investments and liabilities in excess of other assets shown as a percentage of net assets as of July 31, 2023 were as follows:
| Banks |
5.1 | % | ||
| Machinery |
5.1 | |||
| Professional Services |
3.6 | |||
| Software |
3.4 | |||
| Insurance |
3.3 | |||
| Oil, Gas & Consumable Fuels |
3.3 | |||
| Health Care Equipment & Supplies |
3.2 | |||
| Building Products |
3.2 | |||
| Semiconductors & Semiconductor Equipment |
3.2 | |||
| Electronic Equipment, Instruments & Components |
3.2 | |||
| Electrical Equipment |
2.9 | |||
| Health Care Providers & Services |
2.8 | |||
| Construction & Engineering |
2.7 | |||
| Hotels, Restaurants & Leisure |
2.6 |
| Automobile Components |
2.6 | % | ||
| Capital Markets |
2.6 | |||
| Household Durables |
2.4 | |||
| Textiles, Apparel & Luxury Goods |
2.3 | |||
| Specialty Retail |
2.2 | |||
| Metals & Mining |
2.2 | |||
| Financial Services |
2.1 | |||
| Industrial REITs |
1.9 | |||
| Chemicals |
1.9 | |||
| Aerospace & Defense |
1.9 | |||
| Biotechnology |
1.8 | |||
| Consumer Staples Distribution & Retail |
1.6 | |||
| Containers & Packaging |
1.6 | |||
| Ground Transportation |
1.6 |
See Notes to Financial Statements.
111
PGIM Quant Solutions Mid-Cap Core Fund
Schedule of Investments (continued)
as of July 31, 2023
Industry Classification (continued):
| Pharmaceuticals |
1.2 | % | ||
| Beverages |
1.2 | |||
| Unaffiliated Exchange-Traded Fund |
1.2 | |||
| Gas Utilities |
1.1 | |||
| Food Products |
1.1 | |||
| Specialized REITs |
1.1 | |||
| Electric Utilities |
1.0 | |||
| Construction Materials |
1.0 | |||
| Real Estate Management & Development |
0.9 | |||
| Leisure Products |
0.8 | |||
| Hotel & Resort REITs |
0.8 | |||
| Multi-Utilities |
0.8 | |||
| Automobiles |
0.8 | |||
| Interactive Media & Services |
0.8 | |||
| Broadline Retail |
0.7 | |||
| Trading Companies & Distributors |
0.7 | |||
| Water Utilities |
0.7 | |||
| Diversified Consumer Services |
0.7 | |||
| Health Care REITs |
0.7 | |||
| Life Sciences Tools & Services |
0.7 | |||
| IT Services |
0.6 |
| Household Products |
0.6 | % | ||
| Technology Hardware, Storage & Peripherals |
0.6 | |||
| Retail REITs |
0.6 | |||
| Media |
0.6 | |||
| Commercial Services & Supplies |
0.6 | |||
| Passenger Airlines |
0.6 | |||
| Energy Equipment & Services |
0.5 | |||
| Personal Care Products |
0.4 | |||
| Communications Equipment |
0.3 | |||
| Affiliated Mutual Fund |
0.3 | |||
| Marine Transportation |
0.1 | |||
| Office REITs |
0.1 | |||
| Residential REITs |
0.1 | |||
| Mortgage Real Estate Investment Trusts (REITs) |
0.1 | |||
| Wireless Telecommunication Services |
0.1 | |||
|
|
|
|||
| 100.5 | ||||
| Liabilities in excess of other assets |
(0.5 | ) | ||
|
|
|
|||
| 100.0 | % | |||
|
|
|
|||
See Notes to Financial Statements.
112
PGIM Quant Solutions Mid-Cap Core Fund
Statement of Assets & Liabilities
as of July 31, 2023
| Assets |
||||
| Investments at value: |
||||
| Unaffiliated investments (cost $11,056,871) |
$ | 13,162,041 | ||
| Affiliated investments (cost $42,196) |
42,196 | |||
| Receivable for Fund shares sold |
8,354 | |||
| Dividends receivable |
6,037 | |||
| Due from Manager |
5,461 | |||
| Prepaid expenses |
184 | |||
|
|
|
|||
| Total Assets |
13,224,273 | |||
|
|
|
|||
| Liabilities |
||||
| Payable for Fund shares purchased |
26,379 | |||
| Audit fee payable |
24,250 | |||
| Custodian and accounting fees payable |
18,767 | |||
| Professional fees payable |
5,831 | |||
| Shareholders’ reports payable |
5,029 | |||
| Accrued expenses and other liabilities |
4,166 | |||
| Trustees’ fees payable |
803 | |||
| Commitment fee payable |
587 | |||
| Affiliated transfer agent fee payable |
90 | |||
|
|
|
|||
| Total Liabilities |
85,902 | |||
|
|
|
|||
| Net Assets |
$ | 13,138,371 | ||
|
|
|
|||
| Net assets were comprised of: |
||||
| Paid-in capital |
$ | 10,444,116 | ||
| Total distributable earnings (loss) |
2,694,255 | |||
|
|
|
|||
| Net assets, July 31, 2023 |
$ | 13,138,371 | ||
|
|
|
|||
| Class R6 |
||||
| Net asset value, offering price and redemption price per share, ($13,138,371 ÷ 1,276,168 shares of beneficial interest issued and outstanding) |
$ |
10.30 |
| |
|
|
|
|||
See Notes to Financial Statements.
113
PGIM Quant Solutions Mid-Cap Core Fund
Statement of Operations
Year Ended July 31, 2023
| Net Investment Income (Loss) |
||||
| Income |
||||
| Unaffiliated dividend income (net of $37 foreign withholding tax) |
$ | 211,429 | ||
| Affiliated dividend income |
612 | |||
| Income from securities lending, net (including affiliated income of $29) |
35 | |||
|
|
|
|||
| Total income |
212,076 | |||
|
|
|
|||
| Expenses |
||||
| Management fee |
65,958 | |||
| Custodian and accounting fees |
34,826 | |||
| Professional fees |
33,246 | |||
| Audit fee |
24,250 | |||
| Shareholders’ reports |
14,195 | |||
| Fund data services |
10,572 | |||
| Trustees’ fees |
9,692 | |||
| Commitment fees |
4,977 | |||
| Transfer agent’s fees and expenses (including affiliated expense of $573) |
722 | |||
| Registration fees |
422 | |||
| Miscellaneous |
5,280 | |||
|
|
|
|||
| Total expenses |
204,140 | |||
| Less: Fee waiver and/or expense reimbursement |
(96,461 | ) | ||
|
|
|
|||
| Net expenses |
107,679 | |||
|
|
|
|||
| Net investment income (loss) |
104,397 | |||
|
|
|
|||
| Realized And Unrealized Gain (Loss) On Investments |
||||
| Net realized gain (loss) on investment transactions |
953,858 | |||
| Net change in unrealized appreciation (depreciation) on investments |
360,281 | |||
|
|
|
|||
| Net gain (loss) on investment transactions |
1,314,139 | |||
|
|
|
|||
| Net Increase (Decrease) In Net Assets Resulting From Operations |
$ | 1,418,536 | ||
|
|
|
|||
See Notes to Financial Statements.
114
PGIM Quant Solutions Mid-Cap Core Fund
Statements of Changes in Net Assets
| Year Ended July 31, |
||||||||||
| 2023 | 2022 | |||||||||
| Increase (Decrease) in Net Assets |
||||||||||
| Operations |
||||||||||
| Net investment income (loss) |
$ | 104,397 | $ | 151,652 | ||||||
| Net realized gain (loss) on investment transactions |
953,858 | 3,248,464 | ||||||||
| Net change in unrealized appreciation (depreciation) on investments |
360,281 | (3,900,167 | ) | |||||||
|
|
|
|
|
|||||||
| Net increase (decrease) in net assets resulting from operations |
1,418,536 | (500,051 | ) | |||||||
|
|
|
|
|
|||||||
| Dividends and Distributions |
||||||||||
| Distributions from distributable earnings |
||||||||||
| Class R6 |
(2,029,621 | ) | (4,709,837 | ) | ||||||
|
|
|
|
|
|||||||
| Fund share transactions |
||||||||||
| Net proceeds from shares sold (332,362 and 586,942 shares, respectively) |
3,200,816 | 6,926,148 | ||||||||
| Net asset value of shares issued in reinvestment of dividends and distributions (217,537 and 413,144 shares, respectively) |
2,029,621 | 4,709,837 | ||||||||
| Cost of shares purchased (645,044 and 1,287,830 shares, respectively) |
(6,222,068 | ) | (15,359,733 | ) | ||||||
|
|
|
|
|
|||||||
| Net increase (decrease) in net assets from Fund share transactions |
(991,631 | ) | (3,723,748 | ) | ||||||
|
|
|
|
|
|||||||
| Total increase (decrease) |
(1,602,716 | ) | (8,933,636 | ) | ||||||
| Net Assets: |
||||||||||
| Beginning of year |
14,741,087 | 23,674,723 | ||||||||
|
|
|
|
|
|||||||
| End of year |
$ | 13,138,371 | $ | 14,741,087 | ||||||
|
|
|
|
|
|||||||
See Notes to Financial Statements.
115
PGIM Quant Solutions Mid-Cap Core Fund
Financial Highlights
| Class R6 Shares |
||||||||||||||||||||
| Year Ended July 31, | ||||||||||||||||||||
| 2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
| Per Share Operating Performance(a): |
||||||||||||||||||||
| Net Asset Value, Beginning of Year |
$10.75 | $14.27 | $9.72 | $10.84 | $12.08 | |||||||||||||||
| Income (loss) from investment operations: |
||||||||||||||||||||
| Net investment income (loss) |
0.08 | 0.10 | 0.09 | 0.10 | 0.11 | |||||||||||||||
| Net realized and unrealized gain (loss) on investment transactions |
1.02 | (0.47 | ) | 4.54 | (1.10 | ) | (0.67 | ) | ||||||||||||
| Total from investment operations |
1.10 | (0.37 | ) | 4.63 | (1.00 | ) | (0.56 | ) | ||||||||||||
| Less Dividends and Distributions: |
||||||||||||||||||||
| Dividends from net investment income |
- | (0.13 | ) | (0.08 | ) | (0.12 | ) | (0.09 | ) | |||||||||||
| Distributions from net realized gains |
(1.55 | ) | (3.02 | ) | - | - | (0.59 | ) | ||||||||||||
| Total dividends and distributions |
(1.55 | ) | (3.15 | ) | (0.08 | ) | (0.12 | ) | (0.68 | ) | ||||||||||
| Net asset value, end of year |
$10.30 | $10.75 | $14.27 | $9.72 | $10.84 | |||||||||||||||
| Total Return(b): |
11.78 | % | (3.86 | )% | 47.88 | % | (9.42 | )% | (4.08 | )% | ||||||||||
|
|
||||||||||||||||||||
| Ratios/Supplemental Data: |
||||||||||||||||||||
| Net assets, end of year (000) |
$ | 13,138 | $ | 14,741 | $ | 23,675 | $ | 20,814 | $ | 15,360 | ||||||||||
| Average net assets (000) |
$ | 13,192 | $ | 18,954 | $ | 27,862 | $ | 16,827 | $ | 13,541 | ||||||||||
| Ratios to average net assets(c): |
||||||||||||||||||||
| Expenses after waivers and/or expense reimbursement |
0.82 | %(d) | 0.81 | % | 0.85 | % | 0.85 | % | 0.85 | % | ||||||||||
| Expenses before waivers and/or expense reimbursement |
1.55 | % | 1.21 | % | 0.97 | % | 1.32 | % | 1.54 | % | ||||||||||
| Net investment income (loss) |
0.79 | % | 0.80 | % | 0.73 | % | 1.02 | % | 1.03 | % | ||||||||||
| Portfolio turnover rate(e) |
124 | % | 123 | % | 135 | % | 140 | % | 120 | % | ||||||||||
| (a) | Calculated based on average shares outstanding during the year. |
| (b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. |
| (c) | Does not include expenses of the underlying funds in which the Fund invests. |
| (d) | Includes interest expense on borrowings from the Syndicated Credit Agreement and certain non-recurring expenses of 0.01% and 0.01%, respectively, which are being excluded from the Fund’s contractual waiver for the year ended July 31, 2023. |
| (e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
116
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments
as of July 31, 2023
| Description | Shares | Value | ||||||
| LONG-TERM INVESTMENTS 98.2% |
||||||||
| COMMON STOCKS 96.2% |
||||||||
| Aerospace & Defense 1.5%
|
||||||||
| AAR Corp.* |
34 | $ | 2,033 | |||||
| AeroVironment, Inc.* |
17 | 1,620 | ||||||
| Axon Enterprise, Inc.* |
66 | 12,271 | ||||||
| Boeing Co. (The)* |
549 | 131,129 | ||||||
| BWX Technologies, Inc. |
90 | 6,210 | ||||||
| Curtiss-Wright Corp. |
41 | 7,846 | ||||||
| General Dynamics Corp. |
211 | 47,176 | ||||||
| Hexcel Corp. |
74 | 5,230 | ||||||
| Howmet Aerospace, Inc. |
373 | 19,075 | ||||||
| Huntington Ingalls Industries, Inc. |
39 | 8,957 | ||||||
| Kaman Corp. |
35 | 801 | ||||||
| L3Harris Technologies, Inc. |
174 | 32,971 | ||||||
| Lockheed Martin Corp. |
214 | 95,523 | ||||||
| Mercury Systems, Inc.* |
70 | 2,659 | ||||||
| Moog, Inc. (Class A Stock) |
30 | 3,163 | ||||||
| National Presto Industries, Inc. |
6 | 470 | ||||||
| Northrop Grumman Corp. |
141 | 62,745 | ||||||
| RTX Corp. |
1,411 | 124,069 | ||||||
| Textron, Inc. |
203 | 15,787 | ||||||
| TransDigm Group, Inc. |
44 | 39,588 | ||||||
| Triumph Group, Inc.* |
86 | 1,088 | ||||||
| Woodward, Inc. |
60 | 7,223 | ||||||
|
|
|
|||||||
| 627,634 | ||||||||
| Air Freight & Logistics 0.6%
|
||||||||
| C.H. Robinson Worldwide, Inc. |
111 | 11,120 | ||||||
| Expeditors International of Washington, Inc. |
140 | 17,822 | ||||||
| FedEx Corp. |
213 | 57,499 | ||||||
| Forward Air Corp. |
24 | 2,852 | ||||||
| GXO Logistics, Inc.* |
120 | 8,049 | ||||||
| Hub Group, Inc. (Class A Stock)* |
36 | 3,245 | ||||||
| United Parcel Service, Inc. (Class B Stock) |
701 | 131,178 | ||||||
|
|
|
|||||||
| 231,765 | ||||||||
| Automobile Components 0.2%
|
||||||||
| Adient PLC* |
97 | 4,128 | ||||||
| American Axle & Manufacturing Holdings, Inc.* |
85 | 803 | ||||||
| Aptiv PLC* |
260 | 28,467 | ||||||
| Autoliv, Inc. (Sweden) |
65 | 6,561 | ||||||
| BorgWarner, Inc. |
222 | 10,323 | ||||||
See Notes to Financial Statements.
117
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Automobile Components (cont’d.)
|
||||||||
| Dana, Inc. |
121 | $ | 2,297 | |||||
| Dorman Products, Inc.* |
29 | 2,456 | ||||||
| Fox Factory Holding Corp.* |
42 | 4,700 | ||||||
| Gentex Corp. |
253 | 8,496 | ||||||
| Gentherm, Inc.* |
32 | 1,913 | ||||||
| Goodyear Tire & Rubber Co. (The)* |
303 | 4,872 | ||||||
| LCI Industries |
27 | 3,679 | ||||||
| Lear Corp. |
53 | 8,202 | ||||||
| Patrick Industries, Inc. |
16 | 1,385 | ||||||
| Phinia, Inc.* |
44 | 1,248 | ||||||
| Standard Motor Products, Inc. |
20 | 763 | ||||||
| Visteon Corp.* |
21 | 3,236 | ||||||
| XPEL, Inc.* |
20 | 1,625 | ||||||
|
|
|
|||||||
| 95,154 | ||||||||
| Automobiles 1.9%
|
||||||||
| Ford Motor Co. |
3,769 | 49,788 | ||||||
| General Motors Co. |
1,342 | 51,493 | ||||||
| Harley-Davidson, Inc. |
124 | 4,788 | ||||||
| Tesla, Inc.* |
2,584 | 691,039 | ||||||
| Thor Industries, Inc. |
48 | 5,543 | ||||||
| Winnebago Industries, Inc. |
27 | 1,858 | ||||||
|
|
|
|||||||
| 804,509 | ||||||||
| Banks 3.4%
|
||||||||
| Ameris Bancorp |
75 | 3,274 | ||||||
| Associated Banc-Corp. |
193 | 3,657 | ||||||
| Atlantic Union Bankshares Corp. |
80 | 2,558 | ||||||
| Axos Financial, Inc.* |
63 | 2,961 | ||||||
| Banc of California, Inc. |
83 | 1,179 | ||||||
| BancFirst Corp. |
20 | 1,998 | ||||||
| Bancorp, Inc. (The)* |
50 | 1,895 | ||||||
| Bank of America Corp. |
6,653 | 212,896 | ||||||
| Bank of Hawaii Corp. |
37 | 2,114 | ||||||
| Bank OZK |
118 | 5,160 | ||||||
| BankUnited, Inc. |
99 | 2,954 | ||||||
| Banner Corp. |
42 | 2,000 | ||||||
| Berkshire Hills Bancorp, Inc. |
67 | 1,528 | ||||||
| Brookline Bancorp, Inc. |
116 | 1,239 | ||||||
| Cadence Bank |
214 | 5,361 | ||||||
See Notes to Financial Statements.
118
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Banks (cont’d.)
|
||||||||
| Capitol Federal Financial, Inc. |
173 | $ | 1,147 | |||||
| Cathay General Bancorp |
76 | 2,891 | ||||||
| Central Pacific Financial Corp. |
40 | 730 | ||||||
| Citigroup, Inc. |
1,878 | 89,506 | ||||||
| Citizens Financial Group, Inc. |
481 | 15,517 | ||||||
| City Holding Co. |
16 | 1,583 | ||||||
| Columbia Banking System, Inc. |
240 | 5,364 | ||||||
| Comerica, Inc. |
140 | 7,554 | ||||||
| Commerce Bancshares, Inc. |
106 | 5,637 | ||||||
| Community Bank System, Inc. |
46 | 2,476 | ||||||
| Cullen/Frost Bankers, Inc. |
55 | 5,972 | ||||||
| Customers Bancorp, Inc.* |
40 | 1,679 | ||||||
| CVB Financial Corp. |
148 | 2,793 | ||||||
| Dime Community Bancshares, Inc. |
48 | 1,075 | ||||||
| Eagle Bancorp, Inc. |
39 | 1,080 | ||||||
| East West Bancorp, Inc. |
142 | 8,834 | ||||||
| FB Financial Corp. |
45 | 1,594 | ||||||
| Fifth Third Bancorp |
661 | 19,235 | ||||||
| First Bancorp |
36 | 1,191 | ||||||
| First BanCorp. (Puerto Rico) |
200 | 2,970 | ||||||
| First Commonwealth Financial Corp. |
129 | 1,863 | ||||||
| First Financial Bancorp |
127 | 2,932 | ||||||
| First Financial Bankshares, Inc. |
124 | 4,041 | ||||||
| First Hawaiian, Inc. |
163 | 3,372 | ||||||
| First Horizon Corp. |
573 | 7,810 | ||||||
| FNB Corp. |
379 | 4,847 | ||||||
| Fulton Financial Corp. |
210 | 3,003 | ||||||
| Glacier Bancorp, Inc. |
129 | 4,218 | ||||||
| Hancock Whitney Corp. |
98 | 4,313 | ||||||
| Hanmi Financial Corp. |
40 | 760 | ||||||
| Heritage Financial Corp. |
27 | 507 | ||||||
| Hilltop Holdings, Inc. |
38 | 1,175 | ||||||
| Home BancShares, Inc. |
194 | 4,716 | ||||||
| Hope Bancorp, Inc. |
126 | 1,368 | ||||||
| Huntington Bancshares, Inc. |
1,451 | 17,760 | ||||||
| Independent Bank Corp. |
41 | 2,470 | ||||||
| Independent Bank Group, Inc. |
39 | 1,750 | ||||||
| International Bancshares Corp. |
55 | 2,730 | ||||||
| JPMorgan Chase & Co. |
2,803 | 442,762 | ||||||
| KeyCorp |
915 | 11,264 | ||||||
| Lakeland Financial Corp. |
25 | 1,386 | ||||||
| M&T Bank Corp. |
155 | 21,678 | ||||||
See Notes to Financial Statements.
119
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Banks (cont’d.)
|
||||||||
| National Bank Holdings Corp. (Class A Stock) |
41 | $ | 1,409 | |||||
| NBT Bancorp, Inc. |
44 | 1,637 | ||||||
| New York Community Bancorp, Inc. |
735 | 10,194 | ||||||
| Northfield Bancorp, Inc. |
23 | 280 | ||||||
| Northwest Bancshares, Inc. |
133 | 1,644 | ||||||
| OFG Bancorp (Puerto Rico) |
45 | 1,507 | ||||||
| Old National Bancorp |
314 | 5,347 | ||||||
| Pacific Premier Bancorp, Inc. |
100 | 2,554 | ||||||
| PacWest Bancorp |
123 | 1,144 | ||||||
| Park National Corp. |
8 | 892 | ||||||
| Pathward Financial, Inc. |
28 | 1,455 | ||||||
| Pinnacle Financial Partners, Inc. |
73 | 5,541 | ||||||
| PNC Financial Services Group, Inc. (The) |
382 | 52,292 | ||||||
| Preferred Bank |
15 | 991 | ||||||
| Prosperity Bancshares, Inc. |
86 | 5,446 | ||||||
| Provident Financial Services, Inc. |
104 | 1,928 | ||||||
| Regions Financial Corp. |
897 | 18,272 | ||||||
| Renasant Corp. |
57 | 1,764 | ||||||
| S&T Bancorp, Inc. |
43 | 1,358 | ||||||
| Seacoast Banking Corp. of Florida |
88 | 2,174 | ||||||
| ServisFirst Bancshares, Inc. |
53 | 3,163 | ||||||
| Simmons First National Corp. (Class A Stock) |
157 | 3,170 | ||||||
| Southside Bancshares, Inc. |
52 | 1,727 | ||||||
| SouthState Corp. |
80 | 6,214 | ||||||
| Stellar Bancorp, Inc. |
50 | 1,243 | ||||||
| Synovus Financial Corp. |
171 | 5,797 | ||||||
| Texas Capital Bancshares, Inc.* |
53 | 3,384 | ||||||
| Tompkins Financial Corp. |
15 | 902 | ||||||
| Triumph Financial, Inc.* |
31 | 2,198 | ||||||
| Truist Financial Corp. |
1,302 | 43,252 | ||||||
| TrustCo Bank Corp. |
27 | 821 | ||||||
| Trustmark Corp. |
83 | 2,180 | ||||||
| U.S. Bancorp |
1,337 | 53,052 | ||||||
| UMB Financial Corp. |
42 | 2,982 | ||||||
| United Bankshares, Inc. |
125 | 4,180 | ||||||
| United Community Banks, Inc. |
124 | 3,605 | ||||||
| Valley National Bancorp |
452 | 4,638 | ||||||
| Veritex Holdings, Inc. |
54 | 1,162 | ||||||
| Washington Federal, Inc. |
73 | 2,266 | ||||||
| Webster Financial Corp. |
182 | 8,612 | ||||||
| Wells Fargo & Co. |
3,597 | 166,038 | ||||||
| Westamerica BanCorp |
34 | 1,672 | ||||||
See Notes to Financial Statements.
120
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Banks (cont’d.)
|
||||||||
| Wintrust Financial Corp. |
55 | $ | 4,640 | |||||
| WSFS Financial Corp. |
77 | 3,369 | ||||||
| Zions Bancorp NA |
135 | 5,164 | ||||||
|
|
|
|||||||
| 1,429,587 | ||||||||
| Beverages 1.5%
|
||||||||
| Boston Beer Co., Inc. (The) (Class A Stock)* |
7 | 2,600 | ||||||
| Brown-Forman Corp. (Class B Stock) |
176 | 12,426 | ||||||
| Celsius Holdings, Inc.* |
39 | 5,643 | ||||||
| Coca-Cola Co. (The) |
3,754 | 232,485 | ||||||
| Coca-Cola Consolidated, Inc. |
9 | 5,701 | ||||||
| Constellation Brands, Inc. (Class A Stock) |
157 | 42,830 | ||||||
| Keurig Dr. Pepper, Inc. |
835 | 28,398 | ||||||
| MGP Ingredients, Inc. |
13 | 1,482 | ||||||
| Molson Coors Beverage Co. (Class B Stock) |
181 | 12,629 | ||||||
| Monster Beverage Corp.* |
727 | 41,795 | ||||||
| National Beverage Corp.* |
31 | 1,638 | ||||||
| PepsiCo, Inc. |
1,328 | 248,947 | ||||||
|
|
|
|||||||
| 636,574 | ||||||||
| Biotechnology 1.9%
|
||||||||
| AbbVie, Inc. |
1,703 | 254,735 | ||||||
| Amgen, Inc. |
514 | 120,353 | ||||||
| Anika Therapeutics, Inc.* |
17 | 397 | ||||||
| Arcus Biosciences, Inc.* |
50 | 995 | ||||||
| Arrowhead Pharmaceuticals, Inc.* |
122 | 4,211 | ||||||
| Avid Bioservices, Inc.* |
80 | 1,013 | ||||||
| Biogen, Inc.* |
131 | 35,395 | ||||||
| Catalyst Pharmaceuticals, Inc.* |
100 | 1,383 | ||||||
| Coherus Biosciences, Inc.* |
77 | 371 | ||||||
| Cytokinetics, Inc.* |
103 | 3,435 | ||||||
| Dynavax Technologies Corp.* |
100 | 1,399 | ||||||
| Emergent BioSolutions, Inc.* |
62 | 427 | ||||||
| Enanta Pharmaceuticals, Inc.* |
20 | 379 | ||||||
| Exelixis, Inc.* |
347 | 6,839 | ||||||
| Gilead Sciences, Inc. |
1,202 | 91,520 | ||||||
| Halozyme Therapeutics, Inc.* |
143 | 6,143 | ||||||
| Incyte Corp.* |
184 | 11,724 | ||||||
| Ironwood Pharmaceuticals, Inc.* |
195 | 2,163 | ||||||
| iTeos Therapeutics, Inc.* |
20 | 281 | ||||||
See Notes to Financial Statements.
121
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Biotechnology (cont’d.)
|
||||||||
| Moderna, Inc.* |
310 | $ | 36,475 | |||||
| Myriad Genetics, Inc.* |
91 | 2,034 | ||||||
| Neurocrine Biosciences, Inc.* |
94 | 9,578 | ||||||
| OmniAb, Inc. ($ 12.50 Earnout Shares)*^ |
8 | — | ||||||
| OmniAb, Inc. ($ 15 Earnout Shares)*^ |
8 | — | ||||||
| Regeneron Pharmaceuticals, Inc.* |
103 | 76,417 | ||||||
| REGENXBIO, Inc.* |
46 | 874 | ||||||
| uniQure NV (Netherlands)* |
45 | 467 | ||||||
| United Therapeutics Corp.* |
47 | 11,408 | ||||||
| Vanda Pharmaceuticals, Inc.* |
54 | 312 | ||||||
| Vericel Corp.* |
57 | 2,047 | ||||||
| Vertex Pharmaceuticals, Inc.* |
245 | 86,323 | ||||||
| Vir Biotechnology, Inc.* |
90 | 1,267 | ||||||
| Xencor, Inc.* |
58 | 1,409 | ||||||
|
|
|
|||||||
| 771,774 | ||||||||
| Broadline Retail 2.9%
|
||||||||
| Amazon.com, Inc.* |
8,565 | 1,144,969 | ||||||
| eBay, Inc. |
531 | 23,635 | ||||||
| Etsy, Inc.* |
116 | 11,791 | ||||||
| Kohl’s Corp. |
125 | 3,556 | ||||||
| Macy’s, Inc. |
289 | 4,795 | ||||||
| Nordstrom, Inc. |
144 | 3,328 | ||||||
| Ollie’s Bargain Outlet Holdings, Inc.* |
50 | 3,644 | ||||||
|
|
|
|||||||
| 1,195,718 | ||||||||
| Building Products 0.7%
|
||||||||
| A.O. Smith Corp. |
119 | 8,643 | ||||||
| AAON, Inc. |
44 | 4,631 | ||||||
| Advanced Drainage Systems, Inc. |
50 | 6,099 | ||||||
| Allegion PLC |
86 | 10,050 | ||||||
| American Woodmark Corp.* |
11 | 843 | ||||||
| Apogee Enterprises, Inc. |
28 | 1,387 | ||||||
| AZZ, Inc. |
34 | 1,507 | ||||||
| Builders FirstSource, Inc.* |
125 | 18,054 | ||||||
| Carlisle Cos., Inc. |
49 | 13,583 | ||||||
| Carrier Global Corp. |
803 | 47,819 | ||||||
| Fortune Brands Innovations, Inc. |
126 | 8,955 | ||||||
| Gibraltar Industries, Inc.* |
26 | 1,681 | ||||||
| Griffon Corp. |
38 | 1,585 | ||||||
See Notes to Financial Statements.
122
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Building Products (cont’d.)
|
||||||||
| Insteel Industries, Inc. |
29 | $ | 935 | |||||
| Johnson Controls International PLC |
666 | 46,320 | ||||||
| Lennox International, Inc. |
24 | 8,819 | ||||||
| Masco Corp. |
220 | 13,350 | ||||||
| Masterbrand, Inc.* |
146 | 1,803 | ||||||
| Owens Corning |
80 | 11,199 | ||||||
| PGT Innovations, Inc.* |
83 | 2,375 | ||||||
| Quanex Building Products Corp. |
23 | 647 | ||||||
| Resideo Technologies, Inc.* |
190 | 3,557 | ||||||
| Simpson Manufacturing Co., Inc. |
42 | 6,636 | ||||||
| Trane Technologies PLC |
231 | 46,071 | ||||||
| Trex Co., Inc.* |
109 | 7,536 | ||||||
| UFP Industries, Inc. |
63 | 6,474 | ||||||
|
|
|
|||||||
| 280,559 | ||||||||
| Capital Markets 2.5%
|
||||||||
| Affiliated Managers Group, Inc. |
27 | 3,743 | ||||||
| Ameriprise Financial, Inc. |
93 | 32,406 | ||||||
| Artisan Partners Asset Management, Inc. (Class A Stock) |
65 | 2,697 | ||||||
| Avantax, Inc.* |
46 | 1,190 | ||||||
| B. Riley Financial, Inc. |
16 | 888 | ||||||
| Bank of New York Mellon Corp. (The) |
706 | 32,024 | ||||||
| BlackRock, Inc. |
143 | 105,656 | ||||||
| Brightsphere Investment Group, Inc. |
32 | 681 | ||||||
| Cboe Global Markets, Inc. |
100 | 13,968 | ||||||
| Charles Schwab Corp. (The) |
1,431 | 94,589 | ||||||
| CME Group, Inc. |
344 | 68,442 | ||||||
| Donnelley Financial Solutions, Inc.* |
20 | 946 | ||||||
| Evercore, Inc. (Class A Stock) |
29 | 3,917 | ||||||
| FactSet Research Systems, Inc. |
37 | 16,097 | ||||||
| Federated Hermes, Inc. |
94 | 3,180 | ||||||
| Franklin Resources, Inc. |
270 | 7,895 | ||||||
| Goldman Sachs Group, Inc. (The) |
311 | 110,676 | ||||||
| Interactive Brokers Group, Inc. (Class A Stock) |
98 | 8,558 | ||||||
| Intercontinental Exchange, Inc. |
532 | 61,074 | ||||||
| Invesco Ltd. |
473 | 7,946 | ||||||
| Janus Henderson Group PLC |
154 | 4,520 | ||||||
| Jefferies Financial Group, Inc. |
196 | 7,211 | ||||||
| MarketAxess Holdings, Inc. |
36 | 9,692 | ||||||
| Moelis & Co. (Class A Stock) |
65 | 3,174 | ||||||
| Moody’s Corp. |
147 | 51,854 | ||||||
See Notes to Financial Statements.
123
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Capital Markets (cont’d.)
|
||||||||
| Morgan Stanley |
1,257 | $ | 115,091 | |||||
| MSCI, Inc. |
72 | 39,462 | ||||||
| Nasdaq, Inc. |
332 | 16,763 | ||||||
| Northern Trust Corp. |
194 | 15,543 | ||||||
| Piper Sandler Cos. |
5 | 732 | ||||||
| Raymond James Financial, Inc. |
177 | 19,482 | ||||||
| S&P Global, Inc. |
313 | 123,482 | ||||||
| SEI Investments Co. |
98 | 6,173 | ||||||
| State Street Corp. |
314 | 22,746 | ||||||
| Stifel Financial Corp. |
99 | 6,290 | ||||||
| StoneX Group, Inc.* |
19 | 1,748 | ||||||
| T. Rowe Price Group, Inc. |
211 | 26,008 | ||||||
| Virtus Investment Partners, Inc. |
10 | 2,057 | ||||||
| WisdomTree, Inc. |
69 | 480 | ||||||
|
|
|
|||||||
| 1,049,081 | ||||||||
| Chemicals 1.7%
|
||||||||
| AdvanSix, Inc. |
44 | 1,765 | ||||||
| Air Products & Chemicals, Inc. |
213 | 65,035 | ||||||
| Albemarle Corp. |
116 | 24,624 | ||||||
| American Vanguard Corp. |
23 | 415 | ||||||
| Ashland, Inc. |
46 | 4,203 | ||||||
| Avient Corp. |
82 | 3,323 | ||||||
| Axalta Coating Systems Ltd.* |
235 | 7,520 | ||||||
| Balchem Corp. |
29 | 3,907 | ||||||
| Cabot Corp. |
50 | 3,550 | ||||||
| Celanese Corp. |
93 | 11,661 | ||||||
| CF Industries Holdings, Inc. |
180 | 14,774 | ||||||
| Chemours Co. (The) |
163 | 6,028 | ||||||
| Corteva, Inc. |
681 | 38,429 | ||||||
| Dow, Inc. |
671 | 37,891 | ||||||
| DuPont de Nemours, Inc. |
433 | 33,614 | ||||||
| Eastman Chemical Co. |
114 | 9,756 | ||||||
| Ecolab, Inc. |
238 | 43,587 | ||||||
| FMC Corp. |
113 | 10,874 | ||||||
| FutureFuel Corp. |
23 | 224 | ||||||
| Hawkins, Inc. |
15 | 701 | ||||||
| HB Fuller Co. |
55 | 4,072 | ||||||
| Ingevity Corp.* |
41 | 2,625 | ||||||
| Innospec, Inc. |
18 | 1,929 | ||||||
| International Flavors & Fragrances, Inc. |
242 | 20,476 | ||||||
See Notes to Financial Statements.
124
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Chemicals (cont’d.)
|
||||||||
| Koppers Holdings, Inc. |
15 | $ | 574 | |||||
| Linde PLC |
471 | 184,006 | ||||||
| Livent Corp.* |
192 | 4,727 | ||||||
| LyondellBasell Industries NV (Class A Stock) |
245 | 24,221 | ||||||
| Mativ Holdings, Inc. |
86 | 1,354 | ||||||
| Minerals Technologies, Inc. |
30 | 1,841 | ||||||
| Mosaic Co. (The) |
333 | 13,573 | ||||||
| NewMarket Corp. |
10 | 4,517 | ||||||
| Olin Corp. |
111 | 6,402 | ||||||
| PPG Industries, Inc. |
224 | 32,234 | ||||||
| Quaker Chemical Corp. |
3 | 601 | ||||||
| RPM International, Inc. |
116 | 11,984 | ||||||
| Scotts Miracle-Gro Co. (The) |
39 | 2,732 | ||||||
| Sensient Technologies Corp. |
32 | 2,049 | ||||||
| Sherwin-Williams Co. (The) |
222 | 61,383 | ||||||
| Stepan Co. |
12 | 1,150 | ||||||
| Trinseo PLC |
49 | 863 | ||||||
| Westlake Corp. |
25 | 3,437 | ||||||
|
|
|
|||||||
| 708,631 | ||||||||
| Commercial Services & Supplies 0.5%
|
||||||||
| ABM Industries, Inc. |
71 | 3,286 | ||||||
| Brady Corp. (Class A Stock) |
45 | 2,321 | ||||||
| Brink’s Co. (The) |
42 | 3,064 | ||||||
| Cintas Corp. |
81 | 40,665 | ||||||
| Clean Harbors, Inc.* |
44 | 7,315 | ||||||
| Copart, Inc.* |
420 | 37,124 | ||||||
| CoreCivic, Inc.* |
103 | 999 | ||||||
| Deluxe Corp. |
54 | 1,025 | ||||||
| Enviri Corp.* |
74 | 698 | ||||||
| GEO Group, Inc. (The)* |
120 | 896 | ||||||
| Healthcare Services Group, Inc. |
88 | 1,110 | ||||||
| HNI Corp. |
52 | 1,513 | ||||||
| Interface, Inc. |
46 | 449 | ||||||
| Liquidity Services, Inc.* |
39 | 654 | ||||||
| Matthews International Corp. (Class A Stock) |
31 | 1,423 | ||||||
| MillerKnoll, Inc. |
105 | 2,055 | ||||||
| MSA Safety, Inc. |
34 | 5,644 | ||||||
| OPENLANE, Inc.* |
107 | 1,680 | ||||||
| Pitney Bowes, Inc. |
172 | 678 | ||||||
| Republic Services, Inc. |
198 | 29,920 | ||||||
See Notes to Financial Statements.
125
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Commercial Services & Supplies (cont’d.)
|
||||||||
| Rollins, Inc. |
225 | $ | 9,187 | |||||
| Stericycle, Inc.* |
101 | 4,292 | ||||||
| Tetra Tech, Inc. |
43 | 7,276 | ||||||
| UniFirst Corp. |
6 | 974 | ||||||
| Viad Corp.* |
23 | 649 | ||||||
| Waste Management, Inc. |
356 | 58,309 | ||||||
|
|
|
|||||||
| 223,206 | ||||||||
| Communications Equipment 0.8%
|
||||||||
| ADTRAN Holdings, Inc. |
65 | 632 | ||||||
| Arista Networks, Inc.* |
238 | 36,911 | ||||||
| Calix, Inc.* |
50 | 2,256 | ||||||
| Ciena Corp.* |
137 | 5,781 | ||||||
| Cisco Systems, Inc. |
3,928 | 204,413 | ||||||
| Clearfield, Inc.* |
10 | 467 | ||||||
| Digi International, Inc.* |
23 | 964 | ||||||
| Extreme Networks, Inc.* |
123 | 3,271 | ||||||
| F5, Inc.* |
61 | 9,653 | ||||||
| Harmonic, Inc.* |
139 | 2,074 | ||||||
| Juniper Networks, Inc. |
338 | 9,396 | ||||||
| Lumentum Holdings, Inc.* |
71 | 3,718 | ||||||
| Motorola Solutions, Inc. |
163 | 46,721 | ||||||
| NETGEAR, Inc.* |
39 | 532 | ||||||
| NetScout Systems, Inc.* |
83 | 2,320 | ||||||
| Viasat, Inc.* |
84 | 2,599 | ||||||
| Viavi Solutions, Inc.* |
218 | 2,370 | ||||||
|
|
|
|||||||
| 334,078 | ||||||||
| Construction & Engineering 0.2%
|
||||||||
| AECOM |
130 | 11,310 | ||||||
| Arcosa, Inc. |
47 | 3,627 | ||||||
| Comfort Systems USA, Inc. |
37 | 6,437 | ||||||
| Dycom Industries, Inc.* |
30 | 2,987 | ||||||
| EMCOR Group, Inc. |
43 | 9,247 | ||||||
| Fluor Corp.* |
168 | 5,205 | ||||||
| Granite Construction, Inc. |
47 | 1,924 | ||||||
| MasTec, Inc.* |
60 | 7,065 | ||||||
| MDU Resources Group, Inc. |
216 | 4,778 | ||||||
| MYR Group, Inc.* |
9 | 1,283 | ||||||
See Notes to Financial Statements.
126
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Construction & Engineering (cont’d.)
|
||||||||
| Quanta Services, Inc. |
139 | $ | 28,025 | |||||
| Valmont Industries, Inc. |
20 | 5,295 | ||||||
|
|
|
|||||||
| 87,183 | ||||||||
| Construction Materials 0.2%
|
||||||||
| Eagle Materials, Inc. |
32 | 5,900 | ||||||
| Knife River Corp.* |
54 | 2,347 | ||||||
| Martin Marietta Materials, Inc. |
63 | 28,127 | ||||||
| Vulcan Materials Co. |
138 | 30,429 | ||||||
|
|
|
|||||||
| 66,803 | ||||||||
| Consumer Finance 0.5%
|
||||||||
| American Express Co. |
575 | 97,106 | ||||||
| Bread Financial Holdings, Inc. |
69 | 2,868 | ||||||
| Capital One Financial Corp. |
360 | 42,127 | ||||||
| Discover Financial Services |
245 | 25,860 | ||||||
| Encore Capital Group, Inc.* |
29 | 1,551 | ||||||
| Enova International, Inc.* |
39 | 2,149 | ||||||
| EZCORP, Inc. (Class A Stock)* |
31 | 281 | ||||||
| FirstCash Holdings, Inc. |
38 | 3,621 | ||||||
| Green Dot Corp. (Class A Stock)* |
65 | 1,271 | ||||||
| Navient Corp. |
129 | 2,456 | ||||||
| PRA Group, Inc.* |
32 | 764 | ||||||
| PROG Holdings, Inc.* |
61 | 2,475 | ||||||
| SLM Corp. |
270 | 4,369 | ||||||
| Synchrony Financial |
423 | 14,610 | ||||||
| World Acceptance Corp.* |
8 | 1,263 | ||||||
|
|
|
|||||||
| 202,771 | ||||||||
| Consumer Staples Distribution & Retail 1.7%
|
||||||||
| Andersons, Inc. (The) |
45 | 2,197 | ||||||
| BJ’s Wholesale Club Holdings, Inc.* |
126 | 8,355 | ||||||
| Casey’s General Stores, Inc. |
37 | 9,348 | ||||||
| Chefs’ Warehouse, Inc. (The)* |
53 | 1,926 | ||||||
| Costco Wholesale Corp. |
423 | 237,163 | ||||||
| Dollar General Corp. |
212 | 35,798 | ||||||
| Dollar Tree, Inc.* |
195 | 30,094 | ||||||
| Grocery Outlet Holding Corp.* |
79 | 2,643 | ||||||
| Kroger Co. (The) |
632 | 30,740 | ||||||
See Notes to Financial Statements.
127
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Consumer Staples Distribution & Retail (cont’d.)
|
||||||||
| Performance Food Group Co.* |
152 | $ | 9,084 | |||||
| PriceSmart, Inc. |
16 | 1,244 | ||||||
| SpartanNash Co. |
50 | 1,122 | ||||||
| Sprouts Farmers Market, Inc.* |
110 | 4,318 | ||||||
| Sysco Corp. |
483 | 36,858 | ||||||
| Target Corp. |
449 | 61,275 | ||||||
| United Natural Foods, Inc.* |
63 | 1,310 | ||||||
| US Foods Holding Corp.* |
230 | 9,828 | ||||||
| Walgreens Boots Alliance, Inc. |
702 | 21,039 | ||||||
| Walmart, Inc. |
1,351 | 215,971 | ||||||
|
|
|
|||||||
| 720,313 | ||||||||
| Containers & Packaging 0.3%
|
||||||||
| Amcor PLC |
1,412 | 14,487 | ||||||
| AptarGroup, Inc. |
58 | 7,045 | ||||||
| Avery Dennison Corp. |
79 | 14,537 | ||||||
| Ball Corp. |
300 | 17,607 | ||||||
| Berry Global Group, Inc. |
115 | 7,541 | ||||||
| Crown Holdings, Inc. |
115 | 10,667 | ||||||
| Graphic Packaging Holding Co. |
300 | 7,260 | ||||||
| Greif, Inc. (Class A Stock) |
19 | 1,405 | ||||||
| International Paper Co. |
349 | 12,585 | ||||||
| Myers Industries, Inc. |
27 | 530 | ||||||
| O-I Glass, Inc.* |
152 | 3,490 | ||||||
| Packaging Corp. of America |
78 | 11,961 | ||||||
| Sealed Air Corp. |
139 | 6,341 | ||||||
| Silgan Holdings, Inc. |
88 | 3,859 | ||||||
| Sonoco Products Co. |
102 | 5,981 | ||||||
| Westrock Co. |
242 | 8,056 | ||||||
|
|
|
|||||||
| 133,352 | ||||||||
| Distributors 0.1%
|
||||||||
| Genuine Parts Co. |
133 | 20,711 | ||||||
| LKQ Corp. |
255 | 13,971 | ||||||
| Pool Corp. |
31 | 11,927 | ||||||
|
|
|
|||||||
| 46,609 | ||||||||
| Diversified Consumer Services 0.1%
|
||||||||
| Adtalem Global Education, Inc.* |
44 | 1,903 | ||||||
See Notes to Financial Statements.
128
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Diversified Consumer Services (cont’d.)
|
||||||||
| Frontdoor, Inc.* |
100 | $ | 3,492 | |||||
| Grand Canyon Education, Inc.* |
22 | 2,388 | ||||||
| H&R Block, Inc. |
153 | 5,142 | ||||||
| Mister Car Wash, Inc.* |
90 | 894 | ||||||
| Perdoceo Education Corp.* |
69 | 921 | ||||||
| Service Corp. International |
148 | 9,864 | ||||||
| Strategic Education, Inc. |
23 | 1,727 | ||||||
| Stride, Inc.* |
50 | 1,911 | ||||||
|
|
|
|||||||
| 28,242 | ||||||||
| Diversified REITs 0.0%
|
||||||||
| Alexander & Baldwin, Inc. |
98 | 1,882 | ||||||
| American Assets Trust, Inc. |
74 | 1,665 | ||||||
| Armada Hoffler Properties, Inc. |
82 | 1,018 | ||||||
| Essential Properties Realty Trust, Inc. |
155 | 3,805 | ||||||
| Global Net Lease, Inc. |
142 | 1,518 | ||||||
|
|
|
|||||||
| 9,888 | ||||||||
| Diversified Telecommunication Services 0.6%
|
||||||||
| AT&T, Inc. |
6,901 | 100,203 | ||||||
| ATN International, Inc. |
15 | 545 | ||||||
| Cogent Communications Holdings, Inc. |
39 | 2,388 | ||||||
| Consolidated Communications Holdings, Inc.* |
46 | 165 | ||||||
| Frontier Communications Parent, Inc.* |
255 | 4,644 | ||||||
| Iridium Communications, Inc. |
128 | 6,726 | ||||||
| Lumen Technologies, Inc. |
1,141 | 2,042 | ||||||
| Verizon Communications, Inc. |
4,027 | 137,240 | ||||||
|
|
|
|||||||
| 253,953 | ||||||||
| Electric Utilities 1.6%
|
||||||||
| ALLETE, Inc. |
52 | 2,986 | ||||||
| Alliant Energy Corp. |
249 | 13,381 | ||||||
| American Electric Power Co., Inc. |
493 | 41,777 | ||||||
| Constellation Energy Corp. |
307 | 29,672 | ||||||
| Duke Energy Corp. |
742 | 69,466 | ||||||
| Edison International |
360 | 25,906 | ||||||
| Entergy Corp. |
202 | 20,745 | ||||||
| Evergy, Inc. |
227 | 13,613 | ||||||
| Eversource Energy |
330 | 23,869 | ||||||
See Notes to Financial Statements.
129
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Electric Utilities (cont’d.)
|
||||||||
| Exelon Corp. |
974 | $ | 40,772 | |||||
| FirstEnergy Corp. |
533 | 20,995 | ||||||
| Hawaiian Electric Industries, Inc. |
115 | 4,415 | ||||||
| IDACORP, Inc. |
53 | 5,449 | ||||||
| NextEra Energy, Inc. |
1,952 | 143,082 | ||||||
| NRG Energy, Inc. |
216 | 8,206 | ||||||
| OGE Energy Corp. |
201 | 7,266 | ||||||
| Otter Tail Corp. |
40 | 3,240 | ||||||
| PG&E Corp.* |
1,580 | 27,824 | ||||||
| Pinnacle West Capital Corp. |
102 | 8,448 | ||||||
| PNM Resources, Inc. |
79 | 3,541 | ||||||
| Portland General Electric Co. |
100 | 4,767 | ||||||
| PPL Corp. |
706 | 19,436 | ||||||
| Southern Co. (The) |
1,049 | 75,885 | ||||||
| Xcel Energy, Inc. |
535 | 33,560 | ||||||
|
|
|
|||||||
| 648,301 | ||||||||
| Electrical Equipment 0.6%
|
||||||||
| Acuity Brands, Inc. |
22 | 3,635 | ||||||
| AMETEK, Inc. |
233 | 36,954 | ||||||
| Eaton Corp. PLC |
382 | 78,432 | ||||||
| Emerson Electric Co. |
553 | 50,516 | ||||||
| Encore Wire Corp. |
17 | 2,902 | ||||||
| EnerSys |
33 | 3,575 | ||||||
| Generac Holdings, Inc.* |
63 | 9,683 | ||||||
| Hubbell, Inc. |
52 | 16,224 | ||||||
| nVent Electric PLC |
157 | 8,302 | ||||||
| Powell Industries, Inc. |
8 | 486 | ||||||
| Regal Rexnord Corp. |
54 | 8,434 | ||||||
| Rockwell Automation, Inc. |
106 | 35,647 | ||||||
| SunPower Corp.* |
100 | 987 | ||||||
| Sunrun, Inc.* |
242 | 4,593 | ||||||
| Vicor Corp.* |
29 | 2,676 | ||||||
|
|
|
|||||||
| 263,046 | ||||||||
| Electronic Equipment, Instruments & Components 0.8%
|
||||||||
| Advanced Energy Industries, Inc. |
26 | 3,255 | ||||||
| Amphenol Corp. (Class A Stock) |
576 | 50,867 | ||||||
| Arlo Technologies, Inc.* |
76 | 863 | ||||||
| Arrow Electronics, Inc.* |
56 | 7,982 | ||||||
See Notes to Financial Statements.
130
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Electronic Equipment, Instruments & Components (cont’d.)
|
||||||||
| Avnet, Inc. |
95 | $ | 4,608 | |||||
| Badger Meter, Inc. |
31 | 5,104 | ||||||
| Belden, Inc. |
37 | 3,576 | ||||||
| Benchmark Electronics, Inc. |
39 | 1,034 | ||||||
| CDW Corp. |
129 | 24,132 | ||||||
| Cognex Corp. |
166 | 9,067 | ||||||
| Coherent Corp.* |
132 | 6,252 | ||||||
| Corning, Inc. |
748 | 25,387 | ||||||
| Crane NXT Co. |
43 | 2,543 | ||||||
| CTS Corp. |
31 | 1,384 | ||||||
| ePlus, Inc.* |
36 | 2,029 | ||||||
| Fabrinet (Thailand)* |
39 | 4,822 | ||||||
| Insight Enterprises, Inc.* |
24 | 3,521 | ||||||
| IPG Photonics Corp.* |
33 | 4,338 | ||||||
| Itron, Inc.* |
45 | 3,540 | ||||||
| Jabil, Inc. |
129 | 14,276 | ||||||
| Keysight Technologies, Inc.* |
175 | 28,189 | ||||||
| Knowles Corp.* |
100 | 1,827 | ||||||
| Littelfuse, Inc. |
27 | 8,224 | ||||||
| Methode Electronics, Inc. |
31 | 1,043 | ||||||
| National Instruments Corp. |
141 | 8,319 | ||||||
| Novanta, Inc.* |
25 | 4,423 | ||||||
| OSI Systems, Inc.* |
10 | 1,192 | ||||||
| PC Connection, Inc. |
15 | 726 | ||||||
| Plexus Corp.* |
29 | 2,856 | ||||||
| Rogers Corp.* |
12 | 2,023 | ||||||
| Sanmina Corp.* |
66 | 4,056 | ||||||
| ScanSource, Inc.* |
31 | 933 | ||||||
| TD SYNNEX Corp. |
30 | 2,961 | ||||||
| TE Connectivity Ltd. |
296 | 42,473 | ||||||
| Teledyne Technologies, Inc.* |
46 | 17,688 | ||||||
| Trimble, Inc.* |
239 | 12,858 | ||||||
| TTM Technologies, Inc.* |
116 | 1,666 | ||||||
| Vishay Intertechnology, Inc. |
121 | 3,406 | ||||||
| Vontier Corp. |
167 | 5,165 | ||||||
| Zebra Technologies Corp. (Class A Stock)* |
46 | 14,166 | ||||||
|
|
|
|||||||
| 342,774 | ||||||||
| Energy Equipment & Services 0.5%
|
||||||||
| Archrock, Inc. |
178 | 2,075 | ||||||
| Baker Hughes Co. |
971 | 34,752 | ||||||
See Notes to Financial Statements.
131
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Energy Equipment & Services (cont’d.)
|
||||||||
| Bristow Group, Inc.* |
38 | $ | 1,169 | |||||
| ChampionX Corp. |
196 | 6,978 | ||||||
| Core Laboratories, Inc. |
55 | 1,429 | ||||||
| Dril-Quip, Inc.* |
39 | 1,010 | ||||||
| Halliburton Co. |
869 | 33,960 | ||||||
| Helix Energy Solutions Group, Inc.* |
108 | 1,037 | ||||||
| Helmerich & Payne, Inc. |
92 | 4,119 | ||||||
| Nabors Industries Ltd.* |
14 | 1,715 | ||||||
| NexTier Oilfield Solutions, Inc.* |
170 | 2,026 | ||||||
| NOV, Inc. |
419 | 8,414 | ||||||
| Oceaneering International, Inc.* |
93 | 2,088 | ||||||
| Oil States International, Inc.* |
54 | 434 | ||||||
| Patterson-UTI Energy, Inc. |
231 | 3,659 | ||||||
| ProPetro Holding Corp.* |
66 | 689 | ||||||
| RPC, Inc. |
69 | 574 | ||||||
| Schlumberger NV |
1,365 | 79,634 | ||||||
| U.S. Silica Holdings, Inc.* |
62 | 807 | ||||||
| Valaris Ltd.* |
60 | 4,608 | ||||||
|
|
|
|||||||
| 191,177 | ||||||||
| Entertainment 1.2%
|
||||||||
| Activision Blizzard, Inc.* |
685 | 63,541 | ||||||
| Cinemark Holdings, Inc.* |
126 | 2,103 | ||||||
| Electronic Arts, Inc. |
253 | 34,496 | ||||||
| Live Nation Entertainment, Inc.* |
129 | 11,320 | ||||||
| Madison Square Garden Sports Corp. |
20 | 4,255 | ||||||
| Marcus Corp. (The) |
15 | 234 | ||||||
| Netflix, Inc.* |
422 | 185,245 | ||||||
| Take-Two Interactive Software, Inc.* |
153 | 23,400 | ||||||
| Walt Disney Co. (The)* |
1,763 | 156,713 | ||||||
| Warner Bros Discovery, Inc.* |
2,126 | 27,787 | ||||||
| World Wrestling Entertainment, Inc. (Class A Stock) |
35 | 3,675 | ||||||
|
|
|
|||||||
| 512,769 | ||||||||
| Financial Services 3.8%
|
||||||||
| Berkshire Hathaway, Inc. (Class B Stock)* |
1,720 | 605,371 | ||||||
| Essent Group Ltd. |
105 | 5,208 | ||||||
| Euronet Worldwide, Inc.* |
40 | 3,515 | ||||||
| EVERTEC, Inc. (Puerto Rico) |
62 | 2,438 | ||||||
| Fidelity National Information Services, Inc. |
580 | 35,020 | ||||||
See Notes to Financial Statements.
132
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Financial Services (cont’d.)
|
||||||||
| Fiserv, Inc.* |
604 | $ | 76,231 | |||||
| FleetCor Technologies, Inc.* |
71 | 17,673 | ||||||
| Global Payments, Inc. |
248 | 27,342 | ||||||
| Jack Henry & Associates, Inc. |
71 | 11,897 | ||||||
| Mastercard, Inc. (Class A Stock) |
799 | 315,030 | ||||||
| MGIC Investment Corp. |
317 | 5,307 | ||||||
| Mr. Cooper Group, Inc.* |
68 | 3,942 | ||||||
| NMI Holdings, Inc. (Class A Stock)* |
104 | 2,778 | ||||||
| Payoneer Global, Inc.* |
200 | 1,064 | ||||||
| PayPal Holdings, Inc.* |
1,068 | 80,976 | ||||||
| Radian Group, Inc. |
165 | 4,443 | ||||||
| Visa, Inc. (Class A Stock) |
1,559 | 370,621 | ||||||
| Voya Financial, Inc. |
95 | 7,055 | ||||||
| Walker & Dunlop, Inc. |
31 | 2,820 | ||||||
| Western Union Co. (The) |
414 | 5,043 | ||||||
| WEX, Inc.* |
34 | 6,438 | ||||||
|
|
|
|||||||
| 1,590,212 | ||||||||
| Food Products 1.0%
|
||||||||
| Archer-Daniels-Midland Co. |
526 | 44,689 | ||||||
| B&G Foods, Inc. |
90 | 1,193 | ||||||
| Bunge Ltd. |
135 | 14,670 | ||||||
| Calavo Growers, Inc. |
23 | 868 | ||||||
| Cal-Maine Foods, Inc. |
41 | 1,894 | ||||||
| Campbell Soup Co. |
207 | 9,485 | ||||||
| Conagra Brands, Inc. |
487 | 15,978 | ||||||
| Darling Ingredients, Inc.* |
155 | 10,734 | ||||||
| Flowers Foods, Inc. |
218 | 5,387 | ||||||
| Fresh Del Monte Produce, Inc. |
39 | 1,037 | ||||||
| General Mills, Inc. |
561 | 41,929 | ||||||
| Hain Celestial Group, Inc. (The)* |
113 | 1,432 | ||||||
| Hershey Co. (The) |
141 | 32,615 | ||||||
| Hormel Foods Corp. |
283 | 11,569 | ||||||
| Hostess Brands, Inc.* |
155 | 3,726 | ||||||
| Ingredion, Inc. |
59 | 6,564 | ||||||
| J & J Snack Foods Corp. |
6 | 962 | ||||||
| J.M. Smucker Co. (The) |
104 | 15,668 | ||||||
| John B. Sanfilippo & Son, Inc. |
13 | 1,416 | ||||||
| Kellogg Co. |
239 | 15,987 | ||||||
| Kraft Heinz Co. (The) |
771 | 27,895 | ||||||
| Lamb Weston Holdings, Inc. |
132 | 13,679 | ||||||
See Notes to Financial Statements.
133
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Food Products (cont’d.)
|
||||||||
| Lancaster Colony Corp. |
15 | $ | 2,889 | |||||
| McCormick & Co., Inc. |
237 | 21,207 | ||||||
| Mondelez International, Inc. (Class A Stock) |
1,316 | 97,555 | ||||||
| Pilgrim’s Pride Corp.* |
62 | 1,536 | ||||||
| Post Holdings, Inc.* |
48 | 4,094 | ||||||
| Simply Good Foods Co. (The)* |
79 | 3,058 | ||||||
| Tootsie Roll Industries, Inc. |
15 | 523 | ||||||
| TreeHouse Foods, Inc.* |
54 | 2,787 | ||||||
| Tyson Foods, Inc. (Class A Stock) |
273 | 15,211 | ||||||
|
|
|
|||||||
| 428,237 | ||||||||
| Gas Utilities 0.1%
|
||||||||
| Atmos Energy Corp. |
133 | 16,187 | ||||||
| Chesapeake Utilities Corp. |
14 | 1,655 | ||||||
| National Fuel Gas Co. |
99 | 5,258 | ||||||
| New Jersey Resources Corp. |
97 | 4,336 | ||||||
| Northwest Natural Holding Co. |
43 | 1,848 | ||||||
| ONE Gas, Inc. |
52 | 4,115 | ||||||
| Southwest Gas Holdings, Inc. |
57 | 3,759 | ||||||
| Spire, Inc. |
44 | 2,797 | ||||||
| UGI Corp. |
214 | 5,776 | ||||||
|
|
|
|||||||
| 45,731 | ||||||||
| Ground Transportation 0.9%
|
||||||||
| ArcBest Corp. |
26 | 3,024 | ||||||
| Avis Budget Group, Inc.* |
23 | 5,067 | ||||||
| CSX Corp. |
1,963 | 65,407 | ||||||
| Heartland Express, Inc. |
31 | 507 | ||||||
| Hertz Global Holdings, Inc.* |
170 | 2,864 | ||||||
| J.B. Hunt Transport Services, Inc. |
77 | 15,703 | ||||||
| Knight-Swift Transportation Holdings, Inc. |
164 | 9,963 | ||||||
| Landstar System, Inc. |
29 | 5,904 | ||||||
| Marten Transport Ltd. |
83 | 1,881 | ||||||
| Norfolk Southern Corp. |
219 | 51,156 | ||||||
| Old Dominion Freight Line, Inc. |
87 | 36,496 | ||||||
| RXO, Inc.* |
120 | 2,646 | ||||||
| Ryder System, Inc. |
48 | 4,903 | ||||||
| Saia, Inc.* |
26 | 11,002 | ||||||
| Union Pacific Corp. |
585 | 135,732 | ||||||
See Notes to Financial Statements.
134
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Ground Transportation (cont’d.)
|
||||||||
| Werner Enterprises, Inc. |
49 | $ | 2,304 | |||||
| XPO, Inc.* |
120 | 8,309 | ||||||
|
|
|
|||||||
| 362,868 | ||||||||
| Health Care Equipment & Supplies 2.7%
|
||||||||
| Abbott Laboratories |
1,679 | 186,923 | ||||||
| Align Technology, Inc.* |
60 | 22,673 | ||||||
| AngioDynamics, Inc.* |
53 | 461 | ||||||
| Artivion, Inc.* |
23 | 401 | ||||||
| Avanos Medical, Inc.* |
62 | 1,517 | ||||||
| Baxter International, Inc. |
496 | 22,434 | ||||||
| Becton, Dickinson & Co. |
275 | 76,620 | ||||||
| Boston Scientific Corp.* |
1,389 | 72,020 | ||||||
| CONMED Corp. |
29 | 3,510 | ||||||
| Cooper Cos., Inc. (The) |
40 | 15,650 | ||||||
| DENTSPLY SIRONA, Inc. |
208 | 8,636 | ||||||
| Dexcom, Inc.* |
373 | 46,461 | ||||||
| Edwards Lifesciences Corp.* |
580 | 47,601 | ||||||
| Embecta Corp. |
73 | 1,558 | ||||||
| Enovis Corp.* |
40 | 2,556 | ||||||
| Envista Holdings Corp.* |
175 | 6,022 | ||||||
| GE HealthCare Technologies, Inc. |
374 | 29,172 | ||||||
| Glaukos Corp.* |
50 | 3,857 | ||||||
| Globus Medical, Inc. (Class A Stock)* |
80 | 4,822 | ||||||
| Haemonetics Corp.* |
40 | 3,690 | ||||||
| Hologic, Inc.* |
240 | 19,061 | ||||||
| ICU Medical, Inc.* |
14 | 2,494 | ||||||
| IDEXX Laboratories, Inc.* |
75 | 41,605 | ||||||
| Inari Medical, Inc.* |
40 | 2,283 | ||||||
| Insulet Corp.* |
70 | 19,372 | ||||||
| Integer Holdings Corp.* |
32 | 2,959 | ||||||
| Integra LifeSciences Holdings Corp.* |
65 | 2,956 | ||||||
| Intuitive Surgical, Inc.* |
335 | 108,674 | ||||||
| Lantheus Holdings, Inc.* |
63 | 5,449 | ||||||
| LeMaitre Vascular, Inc. |
18 | 1,138 | ||||||
| LivaNova PLC* |
54 | 3,156 | ||||||
| Masimo Corp.* |
40 | 4,892 | ||||||
| Medtronic PLC |
1,283 | 112,596 | ||||||
| Merit Medical Systems, Inc.* |
54 | 4,032 | ||||||
| Neogen Corp.* |
204 | 4,731 | ||||||
| NuVasive, Inc.* |
54 | 2,225 | ||||||
See Notes to Financial Statements.
135
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Health Care Equipment & Supplies (cont’d.)
|
||||||||
| Omnicell, Inc.* |
37 | $ | 2,337 | |||||
| OraSure Technologies, Inc.* |
34 | 160 | ||||||
| Orthofix Medical, Inc.* |
33 | 650 | ||||||
| Penumbra, Inc.* |
33 | 10,011 | ||||||
| QuidelOrtho Corp.* |
44 | 3,844 | ||||||
| ResMed, Inc. |
139 | 30,907 | ||||||
| Shockwave Medical, Inc.* |
35 | 9,121 | ||||||
| STAAR Surgical Co.* |
50 | 2,738 | ||||||
| STERIS PLC |
97 | 21,878 | ||||||
| Stryker Corp. |
332 | 94,092 | ||||||
| Tandem Diabetes Care, Inc.* |
65 | 2,270 | ||||||
| Teleflex, Inc. |
44 | 11,051 | ||||||
| UFP Technologies, Inc.* |
10 | 1,947 | ||||||
| Varex Imaging Corp.* |
55 | 1,281 | ||||||
| Zimmer Biomet Holdings, Inc. |
195 | 26,939 | ||||||
| Zynex, Inc.* |
17 | 166 | ||||||
|
|
|
|||||||
| 1,113,599 | ||||||||
| Health Care Providers & Services 2.7%
|
||||||||
| Acadia Healthcare Co., Inc.* |
83 | 6,559 | ||||||
| AdaptHealth Corp.* |
100 | 1,374 | ||||||
| Addus HomeCare Corp.* |
19 | 1,740 | ||||||
| Agiliti, Inc.* |
40 | 687 | ||||||
| Amedisys, Inc.* |
29 | 2,634 | ||||||
| AmerisourceBergen Corp. |
154 | 28,783 | ||||||
| AMN Healthcare Services, Inc.* |
40 | 4,286 | ||||||
| Apollo Medical Holdings, Inc.* |
50 | 1,831 | ||||||
| Cardinal Health, Inc. |
236 | 21,587 | ||||||
| Centene Corp.* |
523 | 35,611 | ||||||
| Chemed Corp. |
14 | 7,295 | ||||||
| Cigna Group (The) |
277 | 81,743 | ||||||
| Community Health Systems, Inc.* |
167 | 733 | ||||||
| CorVel Corp.* |
14 | 2,864 | ||||||
| Cross Country Healthcare, Inc.* |
23 | 593 | ||||||
| CVS Health Corp. |
1,234 | 92,167 | ||||||
| DaVita, Inc.* |
48 | 4,895 | ||||||
| Elevance Health, Inc. |
222 | 104,702 | ||||||
| Encompass Health Corp. |
105 | 6,933 | ||||||
| Enhabit, Inc.* |
60 | 824 | ||||||
| Ensign Group, Inc. (The) |
53 | 5,134 | ||||||
| Fulgent Genetics, Inc.* |
24 | 932 | ||||||
See Notes to Financial Statements.
136
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Health Care Providers & Services (cont’d.)
|
||||||||
| HCA Healthcare, Inc. |
202 | $ | 55,108 | |||||
| HealthEquity, Inc.* |
91 | 6,183 | ||||||
| Henry Schein, Inc.* |
128 | 10,085 | ||||||
| Humana, Inc. |
120 | 54,820 | ||||||
| Laboratory Corp. of America Holdings |
76 | 16,259 | ||||||
| McKesson Corp. |
131 | 52,714 | ||||||
| ModivCare, Inc.* |
5 | 219 | ||||||
| Molina Healthcare, Inc.* |
55 | 16,747 | ||||||
| NeoGenomics, Inc.* |
157 | 2,721 | ||||||
| Option Care Health, Inc.* |
155 | 5,236 | ||||||
| Owens & Minor, Inc.* |
93 | 1,789 | ||||||
| Patterson Cos., Inc. |
106 | 3,486 | ||||||
| Pediatrix Medical Group, Inc.* |
105 | 1,442 | ||||||
| Privia Health Group, Inc.* |
90 | 2,513 | ||||||
| Progyny, Inc.* |
92 | 3,842 | ||||||
| Quest Diagnostics, Inc. |
105 | 14,197 | ||||||
| R1 RCM, Inc.* |
157 | 2,713 | ||||||
| RadNet, Inc.* |
56 | 1,852 | ||||||
| Select Medical Holdings Corp. |
110 | 3,301 | ||||||
| Tenet Healthcare Corp.* |
95 | 7,099 | ||||||
| U.S. Physical Therapy, Inc. |
6 | 698 | ||||||
| UnitedHealth Group, Inc. |
891 | 451,176 | ||||||
| Universal Health Services, Inc. (Class B Stock) |
59 | 8,199 | ||||||
|
|
|
|||||||
| 1,136,306 | ||||||||
| Health Care REITs 0.2%
|
||||||||
| CareTrust REIT, Inc. |
109 | 2,266 | ||||||
| Community Healthcare Trust, Inc. |
21 | 740 | ||||||
| Healthcare Realty Trust, Inc. |
390 | 7,617 | ||||||
| Healthpeak Properties, Inc. |
535 | 11,679 | ||||||
| LTC Properties, Inc. |
46 | 1,544 | ||||||
| Medical Properties Trust, Inc. |
644 | 6,498 | ||||||
| Omega Healthcare Investors, Inc. |
245 | 7,816 | ||||||
| Physicians Realty Trust |
279 | 4,112 | ||||||
| Sabra Health Care REIT, Inc. |
279 | 3,624 | ||||||
| Universal Health Realty Income Trust |
20 | 955 | ||||||
| Ventas, Inc. |
387 | 18,777 | ||||||
| Welltower, Inc. |
473 | 38,857 | ||||||
|
|
|
|||||||
| 104,485 | ||||||||
See Notes to Financial Statements.
137
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Health Care Technology 0.0%
|
||||||||
| Certara, Inc.* |
110 | $ | 2,142 | |||||
| Computer Programs & Systems, Inc.* |
15 | 393 | ||||||
| Doximity, Inc. (Class A Stock)* |
115 | 4,109 | ||||||
| HealthStream, Inc. |
15 | 337 | ||||||
| NextGen Healthcare, Inc.* |
80 | 1,331 | ||||||
| Schrodinger, Inc.* |
50 | 2,616 | ||||||
| Simulations Plus, Inc. |
23 | 1,145 | ||||||
| Veradigm, Inc.* |
116 | 1,568 | ||||||
|
|
|
|||||||
| 13,641 | ||||||||
| Hotel & Resort REITs 0.1%
|
||||||||
| Chatham Lodging Trust |
69 | 662 | ||||||
| DiamondRock Hospitality Co. |
284 | 2,414 | ||||||
| Host Hotels & Resorts, Inc. |
679 | 12,494 | ||||||
| Park Hotels & Resorts, Inc. |
240 | 3,271 | ||||||
| Pebblebrook Hotel Trust |
163 | 2,518 | ||||||
| Service Properties Trust |
190 | 1,613 | ||||||
| Summit Hotel Properties, Inc. |
143 | 921 | ||||||
| Sunstone Hotel Investors, Inc. |
200 | 2,038 | ||||||
| Xenia Hotels & Resorts, Inc. |
125 | 1,588 | ||||||
|
|
|
|||||||
| 27,519 | ||||||||
| Hotels, Restaurants & Leisure 2.0%
|
||||||||
| Aramark |
250 | 10,092 | ||||||
| BJ’s Restaurants, Inc.* |
21 | 791 | ||||||
| Bloomin’ Brands, Inc. |
100 | 2,687 | ||||||
| Booking Holdings, Inc.* |
35 | 103,978 | ||||||
| Boyd Gaming Corp. |
75 | 5,124 | ||||||
| Brinker International, Inc.* |
40 | 1,571 | ||||||
| Caesars Entertainment, Inc.* |
205 | 12,099 | ||||||
| Carnival Corp.* |
982 | 18,501 | ||||||
| Cheesecake Factory, Inc. (The) |
55 | 2,023 | ||||||
| Chipotle Mexican Grill, Inc.* |
26 | 51,019 | ||||||
| Choice Hotels International, Inc. |
29 | 3,792 | ||||||
| Churchill Downs, Inc. |
68 | 7,878 | ||||||
| Chuy’s Holdings, Inc.* |
15 | 624 | ||||||
| Cracker Barrel Old Country Store, Inc. |
23 | 2,144 | ||||||
| Darden Restaurants, Inc. |
114 | 19,257 | ||||||
| Dave & Buster’s Entertainment, Inc.* |
42 | 1,924 | ||||||
| Dine Brands Global, Inc. |
8 | 483 | ||||||
See Notes to Financial Statements.
138
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Hotels, Restaurants & Leisure (cont’d.)
|
||||||||
| Domino’s Pizza, Inc. |
28 | $ | 11,109 | |||||
| Expedia Group, Inc.* |
142 | 17,399 | ||||||
| Golden Entertainment, Inc.* |
30 | 1,270 | ||||||
| Hilton Grand Vacations, Inc.* |
85 | 3,952 | ||||||
| Hilton Worldwide Holdings, Inc. |
248 | 38,561 | ||||||
| Jack in the Box, Inc. |
14 | 1,392 | ||||||
| Las Vegas Sands Corp.* |
313 | 18,721 | ||||||
| Light & Wonder, Inc.* |
90 | 6,327 | ||||||
| Marriott International, Inc. (Class A Stock) |
246 | 49,645 | ||||||
| Marriott Vacations Worldwide Corp. |
34 | 4,369 | ||||||
| McDonald’s Corp. |
706 | 206,999 | ||||||
| MGM Resorts International |
293 | 14,876 | ||||||
| Monarch Casino & Resort, Inc. |
15 | 1,040 | ||||||
| Norwegian Cruise Line Holdings Ltd.* |
406 | 8,960 | ||||||
| Papa John’s International, Inc. |
19 | 1,571 | ||||||
| Penn Entertainment, Inc.* |
160 | 4,206 | ||||||
| Planet Fitness, Inc. (Class A Stock)* |
80 | 5,403 | ||||||
| Royal Caribbean Cruises Ltd.* |
205 | 22,368 | ||||||
| Sabre Corp.* |
405 | 1,660 | ||||||
| Shake Shack, Inc. (Class A Stock)* |
30 | 2,330 | ||||||
| Six Flags Entertainment Corp.* |
71 | 1,697 | ||||||
| Starbucks Corp. |
1,105 | 112,235 | ||||||
| Texas Roadhouse, Inc. |
61 | 6,805 | ||||||
| Travel + Leisure Co. |
77 | 3,136 | ||||||
| Wendy’s Co. (The) |
182 | 3,911 | ||||||
| Wingstop, Inc. |
27 | 4,552 | ||||||
| Wyndham Hotels & Resorts, Inc. |
74 | 5,766 | ||||||
| Wynn Resorts Ltd. |
94 | 10,244 | ||||||
| Yum! Brands, Inc. |
260 | 35,794 | ||||||
|
|
|
|||||||
| 850,285 | ||||||||
| Household Durables 0.5%
|
||||||||
| Cavco Industries, Inc.* |
4 | 1,183 | ||||||
| Century Communities, Inc. |
19 | 1,467 | ||||||
| D.R. Horton, Inc. |
290 | 36,836 | ||||||
| Ethan Allen Interiors, Inc. |
15 | 472 | ||||||
| Garmin Ltd. |
147 | 15,566 | ||||||
| Green Brick Partners, Inc.* |
20 | 1,130 | ||||||
| Helen of Troy Ltd.* |
21 | 2,967 | ||||||
| Installed Building Products, Inc. |
22 | 3,257 | ||||||
| iRobot Corp.* |
40 | 1,600 | ||||||
See Notes to Financial Statements.
139
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Household Durables (cont’d.)
|
||||||||
| KB Home |
87 | $ | 4,695 | |||||
| La-Z-Boy, Inc. |
62 | 1,945 | ||||||
| Leggett & Platt, Inc. |
126 | 3,687 | ||||||
| Lennar Corp. (Class A Stock) |
242 | 30,693 | ||||||
| LGI Homes, Inc.* |
15 | 2,081 | ||||||
| M/I Homes, Inc.* |
19 | 1,900 | ||||||
| MDC Holdings, Inc. |
52 | 2,667 | ||||||
| Meritage Homes Corp. |
39 | 5,809 | ||||||
| Mohawk Industries, Inc.* |
51 | 5,423 | ||||||
| Newell Brands, Inc. |
364 | 4,062 | ||||||
| NVR, Inc.* |
3 | 18,919 | ||||||
| PulteGroup, Inc. |
207 | 17,469 | ||||||
| Sonos, Inc.* |
165 | 2,828 | ||||||
| Taylor Morrison Home Corp.* |
101 | 4,890 | ||||||
| Tempur Sealy International, Inc. |
169 | 7,543 | ||||||
| Toll Brothers, Inc. |
90 | 7,230 | ||||||
| TopBuild Corp.* |
31 | 8,492 | ||||||
| Tri Pointe Homes, Inc.* |
99 | 3,156 | ||||||
| Whirlpool Corp. |
55 | 7,934 | ||||||
|
|
|
|||||||
| 205,901 | ||||||||
| Household Products 1.2%
|
||||||||
| Central Garden & Pet Co.* |
15 | 607 | ||||||
| Central Garden & Pet Co. (Class A Stock)* |
43 | 1,643 | ||||||
| Church & Dwight Co., Inc. |
234 | 22,387 | ||||||
| Clorox Co. (The) |
123 | 18,632 | ||||||
| Colgate-Palmolive Co. |
807 | 61,542 | ||||||
| Energizer Holdings, Inc. |
80 | 2,856 | ||||||
| Kimberly-Clark Corp. |
330 | 42,603 | ||||||
| Procter & Gamble Co. (The) |
2,260 | 353,238 | ||||||
| WD-40 Co. |
5 | 1,148 | ||||||
|
|
|
|||||||
| 504,656 | ||||||||
| Independent Power & Renewable Electricity Producers 0.0%
|
||||||||
| AES Corp. (The) |
673 | 14,557 | ||||||
| Ormat Technologies, Inc. |
50 | 4,065 | ||||||
|
|
|
|||||||
| 18,622 | ||||||||
See Notes to Financial Statements.
140
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Industrial Conglomerates 0.7%
|
||||||||
| 3M Co. |
529 | $ | 58,984 | |||||
| General Electric Co. |
1,052 | 120,180 | ||||||
| Honeywell International, Inc. |
640 | 124,243 | ||||||
|
|
|
|||||||
| 303,407 | ||||||||
| Industrial REITs 0.4%
|
||||||||
| EastGroup Properties, Inc. |
41 | 7,264 | ||||||
| First Industrial Realty Trust, Inc. |
138 | 7,135 | ||||||
| Innovative Industrial Properties, Inc. |
21 | 1,664 | ||||||
| LXP Industrial Trust |
267 | 2,689 | ||||||
| Prologis, Inc. |
891 | 111,152 | ||||||
| Rexford Industrial Realty, Inc. |
188 | 10,357 | ||||||
| STAG Industrial, Inc. |
170 | 6,171 | ||||||
|
|
|
|||||||
| 146,432 | ||||||||
| Insurance 2.1%
|
||||||||
| Aflac, Inc. |
528 | 38,195 | ||||||
| Allstate Corp. (The) |
254 | 28,621 | ||||||
| Ambac Financial Group, Inc.* |
42 | 594 | ||||||
| American Equity Investment Life Holding Co.* |
59 | 3,166 | ||||||
| American Financial Group, Inc. |
62 | 7,540 | ||||||
| American International Group, Inc. |
710 | 42,799 | ||||||
| AMERISAFE, Inc. |
26 | 1,355 | ||||||
| Aon PLC (Class A Stock) |
195 | 62,107 | ||||||
| Arch Capital Group Ltd.* |
350 | 27,191 | ||||||
| Arthur J. Gallagher & Co. |
197 | 42,316 | ||||||
| Assurant, Inc. |
55 | 7,398 | ||||||
| Assured Guaranty Ltd. |
66 | 3,945 | ||||||
| Brighthouse Financial, Inc.* |
74 | 3,858 | ||||||
| Brown & Brown, Inc. |
231 | 16,274 | ||||||
| Chubb Ltd. |
403 | 82,377 | ||||||
| Cincinnati Financial Corp. |
153 | 16,460 | ||||||
| CNO Financial Group, Inc. |
104 | 2,675 | ||||||
| Employers Holdings, Inc. |
28 | 1,082 | ||||||
| Everest Group Ltd. |
41 | 14,781 | ||||||
| First American Financial Corp. |
110 | 6,972 | ||||||
| Genworth Financial, Inc. (Class A Stock)* |
617 | 3,616 | ||||||
| Globe Life, Inc. |
82 | 9,198 | ||||||
| Hanover Insurance Group, Inc. (The) |
33 | 3,745 | ||||||
| Hartford Financial Services Group, Inc. (The) |
295 | 21,205 | ||||||
See Notes to Financial Statements.
141
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Insurance (cont’d.)
|
||||||||
| HCI Group, Inc. |
11 | $ | 691 | |||||
| Horace Mann Educators Corp. |
47 | 1,416 | ||||||
| James River Group Holdings Ltd. |
38 | 703 | ||||||
| Kemper Corp. |
71 | 3,619 | ||||||
| Kinsale Capital Group, Inc. |
19 | 7,080 | ||||||
| Lincoln National Corp. |
158 | 4,430 | ||||||
| Loews Corp. |
192 | 12,029 | ||||||
| Marsh & McLennan Cos., Inc. |
495 | 93,268 | ||||||
| Mercury General Corp. |
34 | 1,094 | ||||||
| MetLife, Inc. |
633 | 39,860 | ||||||
| Old Republic International Corp. |
269 | 7,416 | ||||||
| Palomar Holdings, Inc.* |
29 | 1,756 | ||||||
| Primerica, Inc. |
29 | 6,168 | ||||||
| Principal Financial Group, Inc. |
212 | 16,932 | ||||||
| ProAssurance Corp. |
69 | 1,159 | ||||||
| Progressive Corp. (The) |
566 | 71,305 | ||||||
| Prudential Financial, Inc.(g) |
346 | 33,386 | ||||||
| Reinsurance Group of America, Inc. |
65 | 9,123 | ||||||
| RenaissanceRe Holdings Ltd. (Bermuda) |
44 | 8,217 | ||||||
| RLI Corp. |
37 | 4,936 | ||||||
| Safety Insurance Group, Inc. |
7 | 504 | ||||||
| Selective Insurance Group, Inc. |
50 | 5,159 | ||||||
| SiriusPoint Ltd. (Bermuda)* |
69 | 644 | ||||||
| Stewart Information Services Corp. |
34 | 1,602 | ||||||
| Travelers Cos., Inc. (The) |
221 | 38,147 | ||||||
| Trupanion, Inc.* |
42 | 1,296 | ||||||
| United Fire Group, Inc. |
27 | 649 | ||||||
| Universal Insurance Holdings, Inc. |
39 | 606 | ||||||
| Unum Group |
177 | 8,604 | ||||||
| W.R. Berkley Corp. |
196 | 12,091 | ||||||
| Willis Towers Watson PLC |
111 | 23,458 | ||||||
|
|
|
|||||||
| 864,818 | ||||||||
| Interactive Media & Services 5.1%
|
||||||||
| Alphabet, Inc. (Class A Stock)* |
5,700 | 756,504 | ||||||
| Alphabet, Inc. (Class C Stock)* |
4,900 | 652,239 | ||||||
| Cargurus, Inc.* |
85 | 1,926 | ||||||
| Cars.com, Inc.* |
80 | 1,825 | ||||||
| Match Group, Inc.* |
275 | 12,790 | ||||||
| Meta Platforms, Inc. (Class A Stock)* |
2,121 | 675,751 | ||||||
| QuinStreet, Inc.* |
54 | 479 | ||||||
See Notes to Financial Statements.
142
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Interactive Media & Services (cont’d.)
|
||||||||
| Shutterstock, Inc. |
24 | $ | 1,235 | |||||
| TripAdvisor, Inc.* |
129 | 2,406 | ||||||
| Yelp, Inc.* |
68 | 3,063 | ||||||
| Ziff Davis, Inc.* |
40 | 2,901 | ||||||
| ZoomInfo Technologies, Inc.* |
265 | 6,776 | ||||||
|
|
|
|||||||
| 2,117,895 | ||||||||
| IT Services 1.0%
|
||||||||
| Accenture PLC (Class A Stock) |
606 | 191,708 | ||||||
| Akamai Technologies, Inc.* |
138 | 13,041 | ||||||
| Cognizant Technology Solutions Corp. (Class A Stock) |
480 | 31,694 | ||||||
| DXC Technology Co.* |
226 | 6,249 | ||||||
| EPAM Systems, Inc.* |
55 | 13,025 | ||||||
| Gartner, Inc.* |
69 | 24,398 | ||||||
| International Business Machines Corp. |
871 | 125,581 | ||||||
| Kyndryl Holdings, Inc.* |
244 | 3,333 | ||||||
| Perficient, Inc.* |
36 | 2,296 | ||||||
| VeriSign, Inc.* |
91 | 19,196 | ||||||
|
|
|
|||||||
| 430,521 | ||||||||
| Leisure Products 0.1%
|
||||||||
| Brunswick Corp. |
61 | 5,265 | ||||||
| Hasbro, Inc. |
124 | 8,005 | ||||||
| Mattel, Inc.* |
348 | 7,412 | ||||||
| Polaris, Inc. |
47 | 6,385 | ||||||
| Sturm Ruger & Co., Inc. |
26 | 1,377 | ||||||
| Topgolf Callaway Brands Corp.* |
152 | 3,035 | ||||||
| Vista Outdoor, Inc.* |
64 | 1,939 | ||||||
| YETI Holdings, Inc.* |
86 | 3,664 | ||||||
|
|
|
|||||||
| 37,082 | ||||||||
| Life Sciences Tools & Services 1.5%
|
||||||||
| Agilent Technologies, Inc. |
289 | 35,192 | ||||||
| Azenta, Inc.* |
78 | 3,664 | ||||||
| BioLife Solutions, Inc.* |
40 | 795 | ||||||
| Bio-Rad Laboratories, Inc. (Class A Stock)* |
19 | 7,702 | ||||||
| Bio-Techne Corp. |
153 | 12,760 | ||||||
| Bruker Corp. |
100 | 6,872 | ||||||
| Charles River Laboratories International, Inc.* |
40 | 8,382 | ||||||
See Notes to Financial Statements.
143
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Life Sciences Tools & Services (cont’d.)
|
||||||||
| Cytek Biosciences, Inc.* |
80 | $ | 717 | |||||
| Danaher Corp. |
645 | 164,514 | ||||||
| Fortrea Holdings, Inc.* |
91 | 2,908 | ||||||
| Illumina, Inc.* |
153 | 29,399 | ||||||
| IQVIA Holdings, Inc.* |
183 | 40,948 | ||||||
| Medpace Holdings, Inc.* |
26 | 6,582 | ||||||
| Mesa Laboratories, Inc. |
8 | 1,029 | ||||||
| Mettler-Toledo International, Inc.* |
21 | 26,407 | ||||||
| Repligen Corp.* |
40 | 6,862 | ||||||
| Revvity, Inc. |
119 | 14,631 | ||||||
| Sotera Health Co.* |
125 | 2,372 | ||||||
| Syneos Health, Inc.* |
99 | 4,199 | ||||||
| Thermo Fisher Scientific, Inc. |
365 | 200,261 | ||||||
| Waters Corp.* |
60 | 16,573 | ||||||
| West Pharmaceutical Services, Inc. |
72 | 26,499 | ||||||
|
|
|
|||||||
| 619,268 | ||||||||
| Machinery 2.0%
|
||||||||
| 3D Systems Corp.* |
181 | 1,577 | ||||||
| AGCO Corp. |
53 | 7,054 | ||||||
| Alamo Group, Inc. |
4 | 775 | ||||||
| Albany International Corp. (Class A Stock) |
31 | 2,985 | ||||||
| Astec Industries, Inc. |
24 | 1,186 | ||||||
| Barnes Group, Inc. |
64 | 2,515 | ||||||
| Caterpillar, Inc. |
493 | 130,729 | ||||||
| Chart Industries, Inc.* |
43 | 7,833 | ||||||
| CIRCOR International, Inc.* |
20 | 1,114 | ||||||
| Crane Co. |
43 | 4,029 | ||||||
| Cummins, Inc. |
137 | 35,730 | ||||||
| Deere & Co. |
253 | 108,689 | ||||||
| Donaldson Co., Inc. |
121 | 7,602 | ||||||
| Dover Corp. |
133 | 19,414 | ||||||
| Enerpac Tool Group Corp. |
60 | 1,649 | ||||||
| EnPro Industries, Inc. |
16 | 2,220 | ||||||
| Esab Corp. |
50 | 3,435 | ||||||
| ESCO Technologies, Inc. |
21 | 2,112 | ||||||
| Federal Signal Corp. |
58 | 3,543 | ||||||
| Flowserve Corp. |
133 | 5,022 | ||||||
| Fortive Corp. |
344 | 26,952 | ||||||
| Franklin Electric Co., Inc. |
27 | 2,668 | ||||||
| Graco, Inc. |
165 | 13,089 | ||||||
See Notes to Financial Statements.
144
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Machinery (cont’d.)
|
||||||||
| Greenbrier Cos., Inc. (The) |
37 | $ | 1,709 | |||||
| Hillenbrand, Inc. |
62 | 3,220 | ||||||
| IDEX Corp. |
73 | 16,484 | ||||||
| Illinois Tool Works, Inc. |
270 | 71,096 | ||||||
| Ingersoll Rand, Inc. |
395 | 25,782 | ||||||
| ITT, Inc. |
72 | 7,171 | ||||||
| John Bean Technologies Corp. |
29 | 3,585 | ||||||
| Kennametal, Inc. |
101 | 3,078 | ||||||
| Lincoln Electric Holdings, Inc. |
53 | 10,638 | ||||||
| Lindsay Corp. |
14 | 1,855 | ||||||
| Middleby Corp. (The)* |
48 | 7,289 | ||||||
| Mueller Industries, Inc. |
45 | 3,648 | ||||||
| Nordson Corp. |
43 | 10,819 | ||||||
| Oshkosh Corp. |
64 | 5,893 | ||||||
| Otis Worldwide Corp. |
396 | 36,020 | ||||||
| PACCAR, Inc. |
501 | 43,151 | ||||||
| Parker-Hannifin Corp. |
124 | 50,841 | ||||||
| Pentair PLC |
160 | 11,120 | ||||||
| Proto Labs, Inc.* |
34 | 1,127 | ||||||
| Snap-on, Inc. |
51 | 13,894 | ||||||
| SPX Technologies, Inc.* |
45 | 3,807 | ||||||
| Standex International Corp. |
4 | 594 | ||||||
| Stanley Black & Decker, Inc. |
143 | 14,196 | ||||||
| Tennant Co. |
9 | 722 | ||||||
| Terex Corp. |
71 | 4,163 | ||||||
| Timken Co. (The) |
58 | 5,386 | ||||||
| Titan International, Inc.* |
32 | 400 | ||||||
| Toro Co. (The) |
100 | 10,165 | ||||||
| Trinity Industries, Inc. |
108 | 2,832 | ||||||
| Wabash National Corp. |
70 | 1,658 | ||||||
| Watts Water Technologies, Inc. (Class A Stock) |
25 | 4,663 | ||||||
| Westinghouse Air Brake Technologies Corp. |
166 | 19,661 | ||||||
| Xylem, Inc. |
224 | 25,256 | ||||||
|
|
|
|||||||
| 813,845 | ||||||||
| Marine Transportation 0.0%
|
||||||||
| Kirby Corp.* |
60 | 4,889 | ||||||
| Matson, Inc. |
32 | 2,990 | ||||||
|
|
|
|||||||
| 7,879 | ||||||||
See Notes to Financial Statements.
145
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Media 0.8% |
||||||||
| AMC Networks, Inc. (Class A Stock)* |
37 | $ | 467 | |||||
| Cable One, Inc. |
6 | 4,344 | ||||||
| Charter Communications, Inc. (Class A Stock)* |
101 | 40,924 | ||||||
| Comcast Corp. (Class A Stock) |
4,014 | 181,674 | ||||||
| DISH Network Corp. (Class A Stock)* |
301 | 2,387 | ||||||
| EW Scripps Co. (The) (Class A Stock)* |
78 | 769 | ||||||
| Fox Corp. (Class A Stock) |
288 | 9,634 | ||||||
| Fox Corp. (Class B Stock) |
135 | 4,240 | ||||||
| Interpublic Group of Cos., Inc. (The) |
388 | 13,281 | ||||||
| John Wiley & Sons, Inc. (Class A Stock) |
57 | 1,951 | ||||||
| New York Times Co. (The) (Class A Stock) |
174 | 7,092 | ||||||
| News Corp. (Class A Stock) |
413 | 8,186 | ||||||
| News Corp. (Class B Stock) |
148 | 2,976 | ||||||
| Nexstar Media Group, Inc. |
25 | 4,668 | ||||||
| Omnicom Group, Inc. |
190 | 16,078 | ||||||
| Paramount Global (Class B Stock) |
543 | 8,704 | ||||||
| Scholastic Corp. |
23 | 993 | ||||||
| TechTarget, Inc.* |
31 | 1,007 | ||||||
| TEGNA, Inc. |
239 | 4,039 | ||||||
| Thryv Holdings, Inc.* |
20 | 474 | ||||||
|
|
|
|||||||
| 313,888 | ||||||||
| Metals & Mining 0.6% |
||||||||
| Alcoa Corp. |
190 | 6,876 | ||||||
| Arconic Corp.* |
95 | 2,840 | ||||||
| ATI, Inc.* |
124 | 5,912 | ||||||
| Carpenter Technology Corp. |
42 | 2,514 | ||||||
| Century Aluminum Co.* |
71 | 660 | ||||||
| Cleveland-Cliffs, Inc.* |
532 | 9,390 | ||||||
| Commercial Metals Co. |
107 | 6,123 | ||||||
| Compass Minerals International, Inc. |
46 | 1,742 | ||||||
| Freeport-McMoRan, Inc. |
1,373 | 61,304 | ||||||
| Haynes International, Inc. |
12 | 602 | ||||||
| Kaiser Aluminum Corp. |
10 | 812 | ||||||
| Materion Corp. |
13 | 1,549 | ||||||
| MP Materials Corp.* |
80 | 1,908 | ||||||
| Newmont Corp. |
765 | 32,834 | ||||||
| Nucor Corp. |
246 | 42,334 | ||||||
| Olympic Steel, Inc. |
15 | 837 | ||||||
| Reliance Steel & Aluminum Co. |
58 | 16,986 | ||||||
| Royal Gold, Inc. |
61 | 7,329 | ||||||
See Notes to Financial Statements.
146
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Metals & Mining (cont’d.) |
||||||||
| Steel Dynamics, Inc. |
149 | $ | 15,880 | |||||
| SunCoke Energy, Inc. |
31 | 275 | ||||||
| TimkenSteel Corp.* |
23 | 536 | ||||||
| United States Steel Corp. |
232 | 5,916 | ||||||
| Warrior Met Coal, Inc. |
62 | 2,743 | ||||||
| Worthington Industries, Inc. |
27 | 2,015 | ||||||
|
|
|
|||||||
| 229,917 | ||||||||
| Mortgage Real Estate Investment Trusts (REITs) 0.1% |
||||||||
| Annaly Capital Management, Inc. |
461 | 9,261 | ||||||
| Apollo Commercial Real Estate Finance, Inc. |
177 | 2,089 | ||||||
| Arbor Realty Trust, Inc. |
170 | 2,875 | ||||||
| ARMOUR Residential REIT, Inc. |
119 | 608 | ||||||
| Ellington Financial, Inc. |
75 | 1,014 | ||||||
| Franklin BSP Realty Trust, Inc. |
60 | 858 | ||||||
| Invesco Mortgage Capital, Inc. |
18 | 216 | ||||||
| KKR Real Estate Finance Trust, Inc. |
31 | 386 | ||||||
| New York Mortgage Trust, Inc. |
99 | 1,005 | ||||||
| PennyMac Mortgage Investment Trust |
108 | 1,380 | ||||||
| Ready Capital Corp. |
180 | 2,083 | ||||||
| Redwood Trust, Inc. |
155 | 1,167 | ||||||
| Starwood Property Trust, Inc. |
330 | 6,844 | ||||||
| Two Harbors Investment Corp. |
92 | 1,234 | ||||||
|
|
|
|||||||
| 31,020 | ||||||||
| Multi-Utilities 0.7% |
||||||||
| Ameren Corp. |
249 | 21,332 | ||||||
| Avista Corp. |
78 | 3,014 | ||||||
| Black Hills Corp. |
71 | 4,283 | ||||||
| CenterPoint Energy, Inc. |
616 | 18,535 | ||||||
| CMS Energy Corp. |
273 | 16,672 | ||||||
| Consolidated Edison, Inc. |
335 | 31,778 | ||||||
| Dominion Energy, Inc. |
800 | 42,840 | ||||||
| DTE Energy Co. |
195 | 22,288 | ||||||
| NiSource, Inc. |
395 | 10,997 | ||||||
| NorthWestern Corp. |
58 | 3,275 | ||||||
| Public Service Enterprise Group, Inc. |
471 | 29,730 | ||||||
| Sempra |
294 | 43,812 | ||||||
See Notes to Financial Statements.
147
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Multi-Utilities (cont’d.) |
||||||||
| Unitil Corp. |
20 | $ | 1,041 | |||||
| WEC Energy Group, Inc. |
295 | 26,509 | ||||||
|
|
|
|||||||
| 276,106 | ||||||||
| Office REITs 0.1% |
||||||||
| Alexandria Real Estate Equities, Inc. |
152 | 19,103 | ||||||
| Boston Properties, Inc. |
130 | 8,662 | ||||||
| Brandywine Realty Trust |
231 | 1,167 | ||||||
| Corporate Office Properties Trust |
105 | 2,730 | ||||||
| Cousins Properties, Inc. |
163 | 3,982 | ||||||
| Douglas Emmett, Inc. |
210 | 3,087 | ||||||
| Easterly Government Properties, Inc. |
115 | 1,697 | ||||||
| Highwoods Properties, Inc. |
125 | 3,159 | ||||||
| Hudson Pacific Properties, Inc. |
199 | 1,168 | ||||||
| JBG SMITH Properties |
104 | 1,740 | ||||||
| Kilroy Realty Corp. |
120 | 4,284 | ||||||
| Office Properties Income Trust |
49 | 377 | ||||||
| Orion Office REIT, Inc. |
73 | 475 | ||||||
| SL Green Realty Corp. |
77 | 2,904 | ||||||
| Vornado Realty Trust |
200 | 4,496 | ||||||
|
|
|
|||||||
| 59,031 | ||||||||
| Oil, Gas & Consumable Fuels 3.7% |
||||||||
| Antero Midstream Corp. |
383 | 4,573 | ||||||
| Antero Resources Corp.* |
295 | 7,891 | ||||||
| APA Corp. |
315 | 12,754 | ||||||
| California Resources Corp. |
65 | 3,468 | ||||||
| Callon Petroleum Co.* |
54 | 2,028 | ||||||
| Chevron Corp. |
1,680 | 274,949 | ||||||
| Chord Energy Corp. |
40 | 6,274 | ||||||
| Civitas Resources, Inc. |
43 | 3,219 | ||||||
| CNX Resources Corp.* |
193 | 3,937 | ||||||
| Comstock Resources, Inc. |
90 | 1,147 | ||||||
| ConocoPhillips |
1,166 | 137,261 | ||||||
| CONSOL Energy, Inc. |
30 | 2,236 | ||||||
| Coterra Energy, Inc. |
724 | 19,939 | ||||||
| CVR Energy, Inc. |
30 | 1,102 | ||||||
| Devon Energy Corp. |
618 | 33,372 | ||||||
| Diamondback Energy, Inc. |
172 | 25,339 | ||||||
| Dorian LPG Ltd. |
31 | 922 | ||||||
See Notes to Financial Statements.
148
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Oil, Gas & Consumable Fuels (cont’d.) |
||||||||
| DT Midstream, Inc. |
102 | $ | 5,459 | |||||
| EOG Resources, Inc. |
562 | 74,482 | ||||||
| EQT Corp. |
359 | 15,143 | ||||||
| Equitrans Midstream Corp. |
426 | 4,418 | ||||||
| Exxon Mobil Corp. |
3,878 | 415,877 | ||||||
| Green Plains, Inc.* |
76 | 2,699 | ||||||
| Hess Corp. |
266 | 40,360 | ||||||
| HF Sinclair Corp. |
142 | 7,397 | ||||||
| Kinder Morgan, Inc. |
1,905 | 33,737 | ||||||
| Marathon Oil Corp. |
592 | 15,552 | ||||||
| Marathon Petroleum Corp. |
400 | 53,208 | ||||||
| Matador Resources Co. |
106 | 5,897 | ||||||
| Murphy Oil Corp. |
154 | 6,663 | ||||||
| Northern Oil & Gas, Inc. |
80 | 3,150 | ||||||
| Occidental Petroleum Corp. |
691 | 43,623 | ||||||
| ONEOK, Inc. |
436 | 29,229 | ||||||
| Ovintiv, Inc. |
240 | 11,062 | ||||||
| Par Pacific Holdings, Inc.* |
65 | 2,046 | ||||||
| PBF Energy, Inc. (Class A Stock) |
112 | 5,313 | ||||||
| PDC Energy, Inc. |
85 | 6,451 | ||||||
| Phillips 66 |
443 | 49,417 | ||||||
| Pioneer Natural Resources Co. |
226 | 51,001 | ||||||
| Range Resources Corp. |
258 | 8,109 | ||||||
| REX American Resources Corp.* |
15 | 555 | ||||||
| SM Energy Co. |
109 | 3,956 | ||||||
| Southwestern Energy Co.* |
1,192 | 7,724 | ||||||
| Talos Energy, Inc.* |
78 | 1,248 | ||||||
| Targa Resources Corp. |
215 | 17,628 | ||||||
| Valero Energy Corp. |
353 | 45,505 | ||||||
| Vital Energy, Inc.* |
11 | 581 | ||||||
| Williams Cos., Inc. (The) |
1,192 | 41,064 | ||||||
| World Kinect Corp. |
73 | 1,645 | ||||||
|
|
|
|||||||
| 1,550,610 | ||||||||
| Paper & Forest Products 0.0% |
||||||||
| Clearwater Paper Corp.* |
9 | 290 | ||||||
| Louisiana-Pacific Corp. |
60 | 4,568 | ||||||
| Mercer International, Inc. (Germany) |
46 | 409 | ||||||
| Sylvamo Corp. |
29 | 1,423 | ||||||
|
|
|
|||||||
| 6,690 | ||||||||
See Notes to Financial Statements.
149
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Passenger Airlines 0.2% |
||||||||
| Alaska Air Group, Inc.* |
133 | $ | 6,468 | |||||
| Allegiant Travel Co.* |
5 | 619 | ||||||
| American Airlines Group, Inc.* |
637 | 10,670 | ||||||
| Delta Air Lines, Inc. |
630 | 29,144 | ||||||
| Hawaiian Holdings, Inc.* |
54 | 626 | ||||||
| JetBlue Airways Corp.* |
424 | 3,294 | ||||||
| SkyWest, Inc.* |
38 | 1,672 | ||||||
| Southwest Airlines Co. |
578 | 19,744 | ||||||
| Sun Country Airlines Holdings, Inc.* |
40 | 862 | ||||||
| United Airlines Holdings, Inc.* |
307 | 16,673 | ||||||
|
|
|
|||||||
| 89,772 | ||||||||
| Personal Care Products 0.1% |
||||||||
| BellRing Brands, Inc.* |
143 | 5,141 | ||||||
| Coty, Inc. (Class A Stock)* |
421 | 5,069 | ||||||
| Edgewell Personal Care Co. |
48 | 1,891 | ||||||
| elf Beauty, Inc.* |
47 | 5,486 | ||||||
| Estee Lauder Cos., Inc. (The) (Class A Stock) |
219 | 39,420 | ||||||
| Inter Parfums, Inc. |
20 | 2,991 | ||||||
| Medifast, Inc. |
2 | 204 | ||||||
| Nu Skin Enterprises, Inc. (Class A Stock) |
60 | 1,763 | ||||||
| USANA Health Sciences, Inc.* |
13 | 844 | ||||||
|
|
|
|||||||
| 62,809 | ||||||||
| Pharmaceuticals 3.6% |
||||||||
| Amphastar Pharmaceuticals, Inc.* |
30 | 1,821 | ||||||
| ANI Pharmaceuticals, Inc.* |
8 | 420 | ||||||
| Bristol-Myers Squibb Co. |
2,012 | 125,126 | ||||||
| Catalent, Inc.* |
192 | 9,316 | ||||||
| Collegium Pharmaceutical, Inc.* |
19 | 432 | ||||||
| Corcept Therapeutics, Inc.* |
107 | 2,726 | ||||||
| Eli Lilly & Co. |
761 | 345,913 | ||||||
| Harmony Biosciences Holdings, Inc.* |
30 | 1,061 | ||||||
| Innoviva, Inc.* |
54 | 732 | ||||||
| Jazz Pharmaceuticals PLC* |
60 | 7,825 | ||||||
| Johnson & Johnson |
2,491 | 417,317 | ||||||
| Ligand Pharmaceuticals, Inc.* |
7 | 469 | ||||||
| Merck & Co., Inc. |
2,435 | 259,693 | ||||||
| Organon & Co. |
283 | 6,220 | ||||||
| Pacira BioSciences, Inc.* |
54 | 1,963 | ||||||
See Notes to Financial Statements.
150
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Pharmaceuticals (cont’d.) |
||||||||
| Perrigo Co. PLC |
143 | $ | 5,240 | |||||
| Pfizer, Inc. |
5,415 | 195,265 | ||||||
| Phibro Animal Health Corp. (Class A Stock) |
15 | 217 | ||||||
| Prestige Consumer Healthcare, Inc.* |
53 | 3,456 | ||||||
| Supernus Pharmaceuticals, Inc.* |
54 | 1,657 | ||||||
| Viatris, Inc. |
1,190 | 12,531 | ||||||
| Zoetis, Inc. |
440 | 82,760 | ||||||
|
|
|
|||||||
| 1,482,160 | ||||||||
| Professional Services 0.8% |
||||||||
| ASGN, Inc.* |
48 | 3,663 | ||||||
| Automatic Data Processing, Inc. |
389 | 96,184 | ||||||
| Broadridge Financial Solutions, Inc. |
114 | 19,143 | ||||||
| CACI International, Inc. (Class A Stock)* |
13 | 4,556 | ||||||
| Ceridian HCM Holding, Inc.* |
156 | 11,046 | ||||||
| Concentrix Corp. |
35 | 2,913 | ||||||
| CSG Systems International, Inc. |
39 | 2,012 | ||||||
| Equifax, Inc. |
114 | 23,265 | ||||||
| ExlService Holdings, Inc.* |
30 | 4,229 | ||||||
| Exponent, Inc. |
48 | 4,300 | ||||||
| Forrester Research, Inc.* |
12 | 382 | ||||||
| FTI Consulting, Inc.* |
24 | 4,204 | ||||||
| Genpact Ltd. |
180 | 6,496 | ||||||
| Heidrick & Struggles International, Inc. |
30 | 818 | ||||||
| Insperity, Inc. |
39 | 4,588 | ||||||
| Jacobs Solutions, Inc. |
121 | 15,175 | ||||||
| KBR, Inc. |
139 | 8,547 | ||||||
| Kelly Services, Inc. (Class A Stock) |
15 | 275 | ||||||
| Korn Ferry |
50 | 2,634 | ||||||
| Leidos Holdings, Inc. |
129 | 12,065 | ||||||
| ManpowerGroup, Inc. |
43 | 3,392 | ||||||
| Maximus, Inc. |
63 | 5,277 | ||||||
| NV5 Global, Inc.* |
5 | 548 | ||||||
| Paychex, Inc. |
313 | 39,272 | ||||||
| Paycom Software, Inc. |
40 | 14,750 | ||||||
| Paylocity Holding Corp.* |
37 | 8,393 | ||||||
| Resources Connection, Inc. |
23 | 368 | ||||||
| Robert Half, Inc. |
106 | 7,860 | ||||||
| Science Applications International Corp. |
47 | 5,703 | ||||||
| TrueBlue, Inc.* |
49 | 733 | ||||||
| TTEC Holdings, Inc. |
16 | 551 | ||||||
See Notes to Financial Statements.
151
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Professional Services (cont’d.) |
||||||||
| Verisk Analytics, Inc. |
138 | $ | 31,594 | |||||
| Verra Mobility Corp.* |
140 | 2,939 | ||||||
|
|
|
|||||||
| 347,875 | ||||||||
| Real Estate Management & Development 0.2% |
||||||||
| Anywhere Real Estate, Inc.* |
138 | 1,156 | ||||||
| CBRE Group, Inc. (Class A Stock)* |
296 | 24,660 | ||||||
| CoStar Group, Inc.* |
395 | 33,168 | ||||||
| Cushman & Wakefield PLC* |
190 | 1,868 | ||||||
| eXp World Holdings, Inc. |
70 | 1,746 | ||||||
| Jones Lang LaSalle, Inc.* |
39 | 6,495 | ||||||
| Kennedy-Wilson Holdings, Inc. |
125 | 2,062 | ||||||
| Marcus & Millichap, Inc. |
23 | 844 | ||||||
| RE/MAX Holdings, Inc. (Class A Stock) |
15 | 296 | ||||||
| St. Joe Co. (The) |
37 | 2,349 | ||||||
|
|
|
|||||||
| 74,644 | ||||||||
| Residential REITs 0.4% |
||||||||
| Apartment Income REIT Corp. |
141 | 4,870 | ||||||
| AvalonBay Communities, Inc. |
133 | 25,090 | ||||||
| Camden Property Trust |
97 | 10,582 | ||||||
| Centerspace |
15 | 932 | ||||||
| Elme Communities |
100 | 1,625 | ||||||
| Equity LifeStyle Properties, Inc. |
160 | 11,389 | ||||||
| Equity Residential |
324 | 21,364 | ||||||
| Essex Property Trust, Inc. |
65 | 15,831 | ||||||
| Independence Realty Trust, Inc. |
218 | 3,715 | ||||||
| Invitation Homes, Inc. |
560 | 19,880 | ||||||
| Mid-America Apartment Communities, Inc. |
106 | 15,864 | ||||||
| NexPoint Residential Trust, Inc. |
31 | 1,288 | ||||||
| UDR, Inc. |
302 | 12,346 | ||||||
| Veris Residential, Inc.* |
100 | 1,868 | ||||||
|
|
|
|||||||
| 146,644 | ||||||||
| Retail REITs 0.4% |
||||||||
| Acadia Realty Trust |
95 | 1,493 | ||||||
| Agree Realty Corp. |
96 | 6,219 | ||||||
| Brixmor Property Group, Inc. |
296 | 6,731 | ||||||
| Federal Realty Investment Trust |
66 | 6,700 | ||||||
See Notes to Financial Statements.
152
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Retail REITs (cont’d.) |
||||||||
| Getty Realty Corp. |
42 | $ | 1,358 | |||||
| Kimco Realty Corp. |
605 | 12,257 | ||||||
| Kite Realty Group Trust |
214 | 4,896 | ||||||
| Macerich Co. (The) |
204 | 2,601 | ||||||
| NNN REIT, Inc. |
189 | 8,067 | ||||||
| Phillips Edison & Co., Inc. |
115 | 4,061 | ||||||
| Realty Income Corp. |
617 | 37,619 | ||||||
| Regency Centers Corp. |
156 | 10,223 | ||||||
| Retail Opportunity Investments Corp. |
133 | 1,959 | ||||||
| RPT Realty |
112 | 1,217 | ||||||
| Saul Centers, Inc. |
8 | 308 | ||||||
| Simon Property Group, Inc. |
306 | 38,128 | ||||||
| SITE Centers Corp. |
223 | 3,133 | ||||||
| Spirit Realty Capital, Inc. |
155 | 6,251 | ||||||
| Tanger Factory Outlet Centers, Inc. |
115 | 2,692 | ||||||
| Urban Edge Properties |
131 | 2,228 | ||||||
| Urstadt Biddle Properties, Inc. (Class A Stock) |
15 | 340 | ||||||
| Whitestone REIT |
23 | 237 | ||||||
|
|
|
|||||||
| 158,718 | ||||||||
| Semiconductors & Semiconductor Equipment 7.0% |
||||||||
| Advanced Micro Devices, Inc.* |
1,553 | 177,663 | ||||||
| Allegro MicroSystems, Inc. (Japan)* |
80 | 4,129 | ||||||
| Alpha & Omega Semiconductor Ltd.* |
30 | 986 | ||||||
| Amkor Technology, Inc. |
124 | 3,607 | ||||||
| Analog Devices, Inc. |
479 | 95,575 | ||||||
| Applied Materials, Inc. |
815 | 123,546 | ||||||
| Axcelis Technologies, Inc.* |
22 | 4,411 | ||||||
| Broadcom, Inc. |
400 | 359,460 | ||||||
| CEVA, Inc.* |
23 | 625 | ||||||
| Cirrus Logic, Inc.* |
55 | 4,444 | ||||||
| Cohu, Inc.* |
51 | 2,226 | ||||||
| Diodes, Inc.* |
47 | 4,441 | ||||||
| Enphase Energy, Inc.* |
131 | 19,890 | ||||||
| First Solar, Inc.* |
92 | 19,081 | ||||||
| FormFactor, Inc.* |
95 | 3,530 | ||||||
| Ichor Holdings Ltd.* |
34 | 1,316 | ||||||
| Intel Corp. |
4,026 | 144,010 | ||||||
| KLA Corp. |
129 | 66,300 | ||||||
| Kulicke & Soffa Industries, Inc. (Singapore) |
60 | 3,593 | ||||||
| Lam Research Corp. |
126 | 90,530 | ||||||
See Notes to Financial Statements.
153
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Semiconductors & Semiconductor Equipment (cont’d.) |
||||||||
| Lattice Semiconductor Corp.* |
131 | $ | 11,913 | |||||
| MACOM Technology Solutions Holdings, Inc.* |
50 | 3,496 | ||||||
| MaxLinear, Inc.* |
88 | 2,171 | ||||||
| Microchip Technology, Inc. |
526 | 49,412 | ||||||
| Micron Technology, Inc. |
1,051 | 75,031 | ||||||
| MKS Instruments, Inc. |
46 | 5,022 | ||||||
| Monolithic Power Systems, Inc. |
43 | 24,058 | ||||||
| NVIDIA Corp. |
2,374 | 1,109,346 | ||||||
| NXP Semiconductors NV (China) |
246 | 54,853 | ||||||
| ON Semiconductor Corp.* |
415 | 44,716 | ||||||
| Onto Innovation, Inc.* |
43 | 5,346 | ||||||
| PDF Solutions, Inc.* |
23 | 1,058 | ||||||
| Photronics, Inc.* |
46 | 1,217 | ||||||
| Power Integrations, Inc. |
57 | 5,537 | ||||||
| Qorvo, Inc.* |
91 | 10,012 | ||||||
| QUALCOMM, Inc. |
1,075 | 142,083 | ||||||
| Rambus, Inc.* |
115 | 7,200 | ||||||
| Semtech Corp.* |
78 | 2,278 | ||||||
| Silicon Laboratories, Inc.* |
30 | 4,474 | ||||||
| SiTime Corp.* |
20 | 2,580 | ||||||
| Skyworks Solutions, Inc. |
158 | 18,070 | ||||||
| SMART Global Holdings, Inc.* |
40 | 1,064 | ||||||
| SolarEdge Technologies, Inc.* |
52 | 12,556 | ||||||
| Synaptics, Inc.* |
34 | 3,070 | ||||||
| Teradyne, Inc. |
151 | 17,054 | ||||||
| Texas Instruments, Inc. |
877 | 157,860 | ||||||
| Ultra Clean Holdings, Inc.* |
53 | 2,019 | ||||||
| Universal Display Corp. |
37 | 5,398 | ||||||
| Veeco Instruments, Inc.* |
71 | 1,999 | ||||||
| Wolfspeed, Inc.* |
128 | 8,435 | ||||||
|
|
|
|||||||
| 2,918,691 | ||||||||
| Software 9.1% |
||||||||
| 8x8, Inc.* |
130 | 616 | ||||||
| A10 Networks, Inc. |
70 | 1,086 | ||||||
| ACI Worldwide, Inc.* |
112 | 2,597 | ||||||
| Adeia, Inc. |
116 | 1,394 | ||||||
| Adobe, Inc.* |
437 | 238,676 | ||||||
| Agilysys, Inc.* |
16 | 1,178 | ||||||
| Alarm.com Holdings, Inc.* |
45 | 2,485 | ||||||
| ANSYS, Inc.* |
83 | 28,394 | ||||||
See Notes to Financial Statements.
154
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Software (cont’d.) |
||||||||
| Aspen Technology, Inc.* |
33 | $ | 5,891 | |||||
| Autodesk, Inc.* |
201 | 42,610 | ||||||
| Blackbaud, Inc.* |
41 | 3,094 | ||||||
| Cadence Design Systems, Inc.* |
266 | 62,247 | ||||||
| Cerence, Inc.* |
50 | 1,391 | ||||||
| CommVault Systems, Inc.* |
33 | 2,572 | ||||||
| Consensus Cloud Solutions, Inc.* |
23 | 745 | ||||||
| Digital Turbine, Inc.* |
120 | 1,301 | ||||||
| DoubleVerify Holdings, Inc.* |
90 | 3,789 | ||||||
| Dropbox, Inc. (Class A Stock)* |
265 | 7,142 | ||||||
| Dynatrace, Inc.* |
210 | 11,485 | ||||||
| Ebix, Inc. |
22 | 681 | ||||||
| Envestnet, Inc.* |
60 | 3,719 | ||||||
| Fair Isaac Corp.* |
22 | 18,435 | ||||||
| Fortinet, Inc.* |
620 | 48,186 | ||||||
| Gen Digital, Inc. |
567 | 11,028 | ||||||
| InterDigital, Inc. |
26 | 2,410 | ||||||
| Intuit, Inc. |
267 | 136,624 | ||||||
| LiveRamp Holdings, Inc.* |
63 | 1,798 | ||||||
| Manhattan Associates, Inc.* |
58 | 11,056 | ||||||
| Microsoft Corp. |
7,135 | 2,396,789 | ||||||
| N-able, Inc.* |
70 | 985 | ||||||
| NCR Corp.* |
139 | 3,736 | ||||||
| OneSpan, Inc.* |
23 | 316 | ||||||
| Oracle Corp. |
1,482 | 173,735 | ||||||
| Palo Alto Networks, Inc.* |
295 | 73,738 | ||||||
| Progress Software Corp. |
40 | 2,402 | ||||||
| PTC, Inc.* |
107 | 15,602 | ||||||
| Qualys, Inc.* |
35 | 4,858 | ||||||
| Roper Technologies, Inc. |
98 | 48,319 | ||||||
| Salesforce, Inc.* |
942 | 211,959 | ||||||
| ServiceNow, Inc.* |
197 | 114,851 | ||||||
| SPS Commerce, Inc.* |
34 | 6,133 | ||||||
| Synopsys, Inc.* |
147 | 66,415 | ||||||
| Teradata Corp.* |
107 | 6,083 | ||||||
| Tyler Technologies, Inc.* |
41 | 16,262 | ||||||
| Xperi, Inc.* |
46 | 604 | ||||||
|
|
|
|||||||
| 3,795,417 | ||||||||
| Specialized REITs 1.1% |
||||||||
| American Tower Corp. |
451 | 85,830 | ||||||
See Notes to Financial Statements.
155
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Specialized REITs (cont’d.) |
||||||||
| Crown Castle, Inc. |
420 | $ | 45,482 | |||||
| CubeSmart |
220 | 9,539 | ||||||
| Digital Realty Trust, Inc. |
278 | 34,644 | ||||||
| EPR Properties |
71 | 3,169 | ||||||
| Equinix, Inc. |
88 | 71,273 | ||||||
| Extra Space Storage, Inc. |
199 | 27,829 | ||||||
| Four Corners Property Trust, Inc. |
86 | 2,262 | ||||||
| Iron Mountain, Inc. |
291 | 17,867 | ||||||
| Lamar Advertising Co. (Class A Stock) |
84 | 8,291 | ||||||
| National Storage Affiliates Trust |
73 | 2,467 | ||||||
| Outfront Media, Inc. |
170 | 2,628 | ||||||
| PotlatchDeltic Corp. |
83 | 4,451 | ||||||
| Public Storage |
145 | 40,854 | ||||||
| Rayonier, Inc. |
158 | 5,233 | ||||||
| Safehold, Inc. |
42 | 1,039 | ||||||
| SBA Communications Corp. |
106 | 23,209 | ||||||
| Uniti Group, Inc. |
309 | 1,724 | ||||||
| VICI Properties, Inc. |
985 | 31,008 | ||||||
| Weyerhaeuser Co. |
718 | 24,455 | ||||||
|
|
|
|||||||
| 443,254 | ||||||||
| Specialty Retail 2.1% |
||||||||
| Aaron’s Co., Inc. (The) |
23 | 364 | ||||||
| Abercrombie & Fitch Co. (Class A Stock)* |
48 | 1,901 | ||||||
| Academy Sports & Outdoors, Inc. |
80 | 4,783 | ||||||
| Advance Auto Parts, Inc. |
59 | 4,389 | ||||||
| American Eagle Outfitters, Inc. |
184 | 2,585 | ||||||
| Asbury Automotive Group, Inc.* |
12 | 2,707 | ||||||
| AutoNation, Inc.* |
30 | 4,829 | ||||||
| AutoZone, Inc.* |
17 | 42,189 | ||||||
| Bath & Body Works, Inc. |
221 | 8,190 | ||||||
| Best Buy Co., Inc. |
185 | 15,364 | ||||||
| Boot Barn Holdings, Inc.* |
29 | 2,723 | ||||||
| Buckle, Inc. (The) |
29 | 1,060 | ||||||
| Caleres, Inc. |
41 | 1,109 | ||||||
| CarMax, Inc.* |
152 | 12,557 | ||||||
| Chico’s FAS, Inc.* |
85 | 518 | ||||||
| Designer Brands, Inc. (Class A Stock) |
69 | 687 | ||||||
| Dick’s Sporting Goods, Inc. |
61 | 8,601 | ||||||
| Five Below, Inc.* |
55 | 11,459 | ||||||
| Foot Locker, Inc. |
82 | 2,203 | ||||||
See Notes to Financial Statements.
156
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Specialty Retail (cont’d.) |
||||||||
| GameStop Corp. (Class A Stock)* |
267 | $ | 5,927 | |||||
| Gap, Inc. (The) |
259 | 2,668 | ||||||
| Group 1 Automotive, Inc. |
18 | 4,654 | ||||||
| Guess?, Inc. |
31 | 651 | ||||||
| Haverty Furniture Cos., Inc. |
15 | 534 | ||||||
| Hibbett, Inc. |
19 | 882 | ||||||
| Home Depot, Inc. (The) |
968 | 323,157 | ||||||
| Leslie’s, Inc.* |
200 | 1,274 | ||||||
| Lithia Motors, Inc. |
21 | 6,521 | ||||||
| Lowe’s Cos., Inc. |
570 | 133,534 | ||||||
| MarineMax, Inc.* |
35 | 1,412 | ||||||
| Monro, Inc. |
24 | 880 | ||||||
| Murphy USA, Inc. |
17 | 5,220 | ||||||
| National Vision Holdings, Inc.* |
100 | 2,163 | ||||||
| ODP Corp. (The)* |
42 | 2,095 | ||||||
| O’Reilly Automotive, Inc.* |
60 | 55,547 | ||||||
| RH* |
11 | 4,270 | ||||||
| Ross Stores, Inc. |
323 | 37,029 | ||||||
| Sally Beauty Holdings, Inc.* |
133 | 1,592 | ||||||
| Shoe Carnival, Inc. |
15 | 399 | ||||||
| Signet Jewelers Ltd. |
48 | 3,864 | ||||||
| Sleep Number Corp.* |
19 | 526 | ||||||
| Sonic Automotive, Inc. (Class A Stock) |
26 | 1,245 | ||||||
| TJX Cos., Inc. (The) |
1,109 | 95,962 | ||||||
| Tractor Supply Co. |
96 | 21,503 | ||||||
| Ulta Beauty, Inc.* |
43 | 19,126 | ||||||
| Upbound Group, Inc. |
53 | 1,835 | ||||||
| Urban Outfitters, Inc.* |
78 | 2,837 | ||||||
| Valvoline, Inc. |
129 | 4,898 | ||||||
| Victoria’s Secret & Co.* |
98 | 2,008 | ||||||
| Williams-Sonoma, Inc. |
59 | 8,180 | ||||||
|
|
|
|||||||
| 880,611 | ||||||||
| Technology Hardware, Storage & Peripherals 6.9% |
||||||||
| Apple, Inc. |
14,187 | 2,787,036 | ||||||
| Avid Technology, Inc.* |
40 | 954 | ||||||
| Corsair Gaming, Inc.* |
40 | 739 | ||||||
| Hewlett Packard Enterprise Co. |
1,243 | 21,603 | ||||||
| HP, Inc. |
848 | 27,840 | ||||||
| NetApp, Inc. |
198 | 15,446 | ||||||
| Seagate Technology Holdings PLC |
189 | 12,001 | ||||||
See Notes to Financial Statements.
157
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Technology Hardware, Storage & Peripherals (cont’d.) |
||||||||
| Super Micro Computer, Inc.* |
35 | $ | 11,559 | |||||
| Western Digital Corp.* |
326 | 13,875 | ||||||
| Xerox Holdings Corp. |
120 | 1,918 | ||||||
|
|
|
|||||||
| 2,892,971 | ||||||||
| Textiles, Apparel & Luxury Goods 0.5% |
||||||||
| Capri Holdings Ltd.* |
135 | 4,983 | ||||||
| Carter’s, Inc. |
29 | 2,175 | ||||||
| Columbia Sportswear Co. |
24 | 1,887 | ||||||
| Crocs, Inc.* |
61 | 6,609 | ||||||
| Deckers Outdoor Corp.* |
22 | 11,961 | ||||||
| G-III Apparel Group Ltd.* |
46 | 953 | ||||||
| Hanesbrands, Inc. |
436 | 2,298 | ||||||
| Kontoor Brands, Inc. |
66 | 2,796 | ||||||
| Movado Group, Inc. |
15 | 430 | ||||||
| NIKE, Inc. (Class B Stock) |
1,186 | 130,922 | ||||||
| Oxford Industries, Inc. |
8 | 863 | ||||||
| PVH Corp. |
52 | 4,661 | ||||||
| Ralph Lauren Corp. |
35 | 4,597 | ||||||
| Skechers USA, Inc. (Class A Stock)* |
128 | 7,114 | ||||||
| Steven Madden Ltd. |
76 | 2,537 | ||||||
| Tapestry, Inc. |
229 | 9,881 | ||||||
| Under Armour, Inc. (Class A Stock)* |
243 | 1,959 | ||||||
| Under Armour, Inc. (Class C Stock)* |
254 | 1,885 | ||||||
| VF Corp. |
352 | 6,973 | ||||||
| Wolverine World Wide, Inc. |
104 | 1,318 | ||||||
|
|
|
|||||||
| 206,802 | ||||||||
| Tobacco 0.6% |
||||||||
| Altria Group, Inc. |
1,721 | 78,168 | ||||||
| Philip Morris International, Inc. |
1,497 | 149,281 | ||||||
| Universal Corp. |
29 | 1,467 | ||||||
| Vector Group Ltd. |
137 | 1,797 | ||||||
|
|
|
|||||||
| 230,713 | ||||||||
| Trading Companies & Distributors 0.3% |
||||||||
| Applied Industrial Technologies, Inc. |
39 | 5,655 | ||||||
| Boise Cascade Co. |
37 | 3,829 | ||||||
| DXP Enterprises, Inc.* |
15 | 570 | ||||||
See Notes to Financial Statements.
158
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||
| COMMON STOCKS (Continued) |
||||||||
| Trading Companies & Distributors (cont’d.) |
||||||||
| Fastenal Co. |
557 | $ | 32,646 | |||||
| GATX Corp. |
29 | 3,635 | ||||||
| GMS, Inc.* |
34 | 2,506 | ||||||
| MSC Industrial Direct Co., Inc. (Class A Stock) |
37 | 3,734 | ||||||
| NOW, Inc.* |
116 | 1,321 | ||||||
| United Rentals, Inc. |
69 | 32,063 | ||||||
| Univar Solutions, Inc.* |
172 | 6,216 | ||||||
| Veritiv Corp. |
10 | 1,401 | ||||||
| W.W. Grainger, Inc. |
41 | 30,278 | ||||||
| Watsco, Inc. |
28 | 10,589 | ||||||
| WESCO International, Inc. |
40 | 7,023 | ||||||
|
|
|
|||||||
| 141,466 | ||||||||
| Water Utilities 0.1% |
||||||||
| American States Water Co. |
39 | 3,448 | ||||||
| American Water Works Co., Inc. |
190 | 28,012 | ||||||
| California Water Service Group |
53 | 2,810 | ||||||
| Essential Utilities, Inc. |
243 | 10,277 | ||||||
| Middlesex Water Co. |
15 | 1,206 | ||||||
| SJW Group |
20 | 1,409 | ||||||
|
|
|
|||||||
| 47,162 | ||||||||
| Wireless Telecommunication Services 0.2% |
||||||||
| Gogo, Inc.* |
80 | 1,206 | ||||||
| Shenandoah Telecommunications Co. |
47 | 877 | ||||||
| Telephone & Data Systems, Inc. |
102 | 818 | ||||||
| T-Mobile US, Inc.* |
548 | 75,498 | ||||||
|
|
|
|||||||
| 78,399 | ||||||||
|
|
|
|||||||
| TOTAL COMMON STOCKS (cost $19,046,065) |
40,104,030 | |||||||
|
|
|
|||||||
| Units |
||||||||
| RIGHTS* 0.0% |
||||||||
| Health Care Equipment & Supplies |
||||||||
| ABIOMED, Inc., expiring 12/31/23^ (cost $0) |
54 | — | ||||||
|
|
|
|||||||
See Notes to Financial Statements.
159
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Description | Shares | Value | ||||||||||||||
| UNAFFILIATED EXCHANGE-TRADED FUNDS 2.0% |
|
|||||||||||||||
| iShares Core S&P 500 ETF |
1,150 | $ | 529,207 | |||||||||||||
| iShares Core S&P Mid-Cap ETF |
400 | 108,960 | ||||||||||||||
| iShares Core S&P Small-Cap ETF |
550 | 57,838 | ||||||||||||||
| SPDR S&P 500 ETF Trust |
250 | 114,447 | ||||||||||||||
|
|
|
|||||||||||||||
| TOTAL UNAFFILIATED EXCHANGE-TRADED FUNDS (cost $654,652) |
810,452 | |||||||||||||||
|
|
|
|||||||||||||||
| TOTAL LONG-TERM INVESTMENTS (cost $19,700,717) |
40,914,482 | |||||||||||||||
|
|
|
|||||||||||||||
| SHORT-TERM INVESTMENTS 2.3% |
|
|||||||||||||||
| AFFILIATED MUTUAL FUND 2.1% |
|
|||||||||||||||
| PGIM Core Government Money Market Fund (cost $858,649)(wj) |
858,649 | 858,649 | ||||||||||||||
|
|
|
|||||||||||||||
| Interest |
Maturity |
Principal Amount (000)# |
||||||||||||||
| U.S. TREASURY OBLIGATION(k)(n) 0.2% |
|
|||||||||||||||
| U.S. Treasury Bills (cost $99,385) |
5.098% | 09/14/23 | 100 | 99,357 | ||||||||||||
|
|
|
|||||||||||||||
| TOTAL SHORT-TERM INVESTMENTS (cost $958,034) |
958,006 | |||||||||||||||
|
|
|
|||||||||||||||
| TOTAL INVESTMENTS 100.5% (cost $20,658,751) |
41,872,488 | |||||||||||||||
| Liabilities in excess of other assets(z) (0.5)% |
(199,236 | ) | ||||||||||||||
|
|
|
|||||||||||||||
| NET ASSETS 100.0% |
$ | 41,673,252 | ||||||||||||||
|
|
|
|||||||||||||||
See the Glossary for a list of the abbreviation(s) used in the annual report.
| * | Non-income producing security. |
| # | Principal amount is shown in U.S. dollars unless otherwise stated. |
| ^ | Indicates a Level 3 instrument. The aggregate value of Level 3 instruments is $0 and 0.0% of net assets. |
| (g) | An affiliated security. |
| (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. |
| (wj) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Government Money Market Fund. |
| (z) | Includes net unrealized appreciation/(depreciation) and/or market value of the below holdings which are excluded from the Schedule of Investments: |
See Notes to Financial Statements.
160
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
Futures contracts outstanding at July 31, 2023:
| Number |
Type |
Expiration Date |
Current Notional Amount |
Value / Unrealized Appreciation (Depreciation) | |||||||||||||
| Long Position: |
|||||||||||||||||
| 4 |
S&P 500 E-Mini Index | Sep. 2023 | $ | 922,900 | $ | 52,968 | |||||||||||
|
|
|
||||||||||||||||
Summary of Collateral for Centrally Cleared/Exchange-traded Derivatives:
Cash and securities segregated as collateral, including pending settlement for closed positions, to cover requirements for centrally cleared/exchange-traded derivatives are listed by broker as follows:
| Broker |
Cash and/or Foreign Currency | Securities Market Value | ||||||||
| MSC |
$ | — | $ | 99,357 | ||||||
|
|
|
|
|
|||||||
Fair Value Measurements:
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.
Level 1—unadjusted quoted prices generally in active markets for identical securities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
The following is a summary of the inputs used as of July 31, 2023 in valuing such portfolio securities:
| Level 1 | Level 2 | Level 3 | ||||||||||
| Investments in Securities |
||||||||||||
| Assets |
||||||||||||
| Long-Term Investments |
||||||||||||
| Common Stocks |
||||||||||||
| Aerospace & Defense |
$ | 627,634 | $ | — | $— | |||||||
| Air Freight & Logistics |
231,765 | — | — | |||||||||
| Automobile Components |
95,154 | — | — | |||||||||
| Automobiles |
804,509 | — | — | |||||||||
| Banks |
1,429,587 | — | — | |||||||||
| Beverages |
636,574 | — | — | |||||||||
| Biotechnology |
771,774 | — | —** | |||||||||
| Broadline Retail |
1,195,718 | — | — | |||||||||
| Building Products |
280,559 | — | — | |||||||||
| Capital Markets |
1,049,081 | — | — | |||||||||
| Chemicals |
708,631 | — | — | |||||||||
See Notes to Financial Statements.
161
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Level 1 | Level 2 | Level 3 | ||||||||
| Investments in Securities (continued) |
||||||||||
| Assets (continued) |
||||||||||
| Long-Term Investments (continued) |
||||||||||
| Common Stocks (continued) |
||||||||||
| Commercial Services & Supplies |
$ | 223,206 | $ | — | $— | |||||
| Communications Equipment |
334,078 | — | — | |||||||
| Construction & Engineering |
87,183 | — | — | |||||||
| Construction Materials |
66,803 | — | — | |||||||
| Consumer Finance |
202,771 | — | — | |||||||
| Consumer Staples Distribution & Retail |
720,313 | — | — | |||||||
| Containers & Packaging |
133,352 | — | — | |||||||
| Distributors |
46,609 | — | — | |||||||
| Diversified Consumer Services |
28,242 | — | — | |||||||
| Diversified REITs |
9,888 | — | — | |||||||
| Diversified Telecommunication Services |
253,953 | — | — | |||||||
| Electric Utilities |
648,301 | — | — | |||||||
| Electrical Equipment |
263,046 | — | — | |||||||
| Electronic Equipment, Instruments & Components |
342,774 | — | — | |||||||
| Energy Equipment & Services |
191,177 | — | — | |||||||
| Entertainment |
512,769 | — | — | |||||||
| Financial Services |
1,590,212 | — | — | |||||||
| Food Products |
428,237 | — | — | |||||||
| Gas Utilities |
45,731 | — | — | |||||||
| Ground Transportation |
362,868 | — | — | |||||||
| Health Care Equipment & Supplies |
1,113,599 | — | — | |||||||
| Health Care Providers & Services |
1,136,306 | — | — | |||||||
| Health Care REITs |
104,485 | — | — | |||||||
| Health Care Technology |
13,641 | — | — | |||||||
| Hotel & Resort REITs |
27,519 | — | — | |||||||
| Hotels, Restaurants & Leisure |
850,285 | — | — | |||||||
| Household Durables |
205,901 | — | — | |||||||
| Household Products |
504,656 | — | — | |||||||
| Independent Power & Renewable Electricity Producers |
18,622 | — | — | |||||||
| Industrial Conglomerates |
303,407 | — | — | |||||||
| Industrial REITs |
146,432 | — | — | |||||||
| Insurance |
864,818 | — | — | |||||||
| Interactive Media & Services |
2,117,895 | — | — | |||||||
| IT Services |
430,521 | — | — | |||||||
| Leisure Products |
37,082 | — | — | |||||||
| Life Sciences Tools & Services |
619,268 | — | — | |||||||
| Machinery |
813,845 | — | — | |||||||
| Marine Transportation |
7,879 | — | — | |||||||
| Media |
313,888 | — | — | |||||||
| Metals & Mining |
229,917 | — | — | |||||||
| Mortgage Real Estate Investment Trusts (REITs) |
31,020 | — | — | |||||||
| Multi-Utilities |
276,106 | — | — | |||||||
See Notes to Financial Statements.
162
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Level 1 | Level 2 | Level 3 | ||||||||
| Investments in Securities (continued) |
||||||||||
| Assets (continued) |
||||||||||
| Long-Term Investments (continued) |
||||||||||
| Common Stocks (continued) |
||||||||||
| Office REITs |
$ | 59,031 | $ | — | $— | |||||
| Oil, Gas & Consumable Fuels |
1,550,610 | — | — | |||||||
| Paper & Forest Products |
6,690 | — | — | |||||||
| Passenger Airlines |
89,772 | — | — | |||||||
| Personal Care Products |
62,809 | — | — | |||||||
| Pharmaceuticals |
1,482,160 | — | — | |||||||
| Professional Services |
347,875 | — | — | |||||||
| Real Estate Management & Development |
74,644 | — | — | |||||||
| Residential REITs |
146,644 | — | — | |||||||
| Retail REITs |
158,718 | — | — | |||||||
| Semiconductors & Semiconductor Equipment |
2,918,691 | — | — | |||||||
| Software |
3,795,417 | — | — | |||||||
| Specialized REITs |
443,254 | — | — | |||||||
| Specialty Retail |
880,611 | — | — | |||||||
| Technology Hardware, Storage & Peripherals |
2,892,971 | — | — | |||||||
| Textiles, Apparel & Luxury Goods |
206,802 | — | — | |||||||
| Tobacco |
230,713 | — | — | |||||||
| Trading Companies & Distributors |
141,466 | — | — | |||||||
| Water Utilities |
47,162 | — | — | |||||||
| Wireless Telecommunication Services |
78,399 | — | — | |||||||
| Rights |
||||||||||
| Health Care Equipment & Supplies |
— | — | —** | |||||||
| Unaffiliated Exchange-Traded Funds |
810,452 | — | — | |||||||
| Short-Term Investments |
||||||||||
| Affiliated Mutual Fund |
858,649 | — | — | |||||||
| U.S. Treasury Obligation |
— | 99,357 | — | |||||||
|
|
|
|
|
|
| |||||
| Total |
$ | 41,773,131 | $ | 99,357 | $—** | |||||
|
|
|
|
|
|
| |||||
| Other Financial Instruments* |
||||||||||
| Assets |
||||||||||
| Futures Contracts. |
$ | 52,968 | $ | — | $— | |||||
|
|
|
|
|
|
| |||||
| * | 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. |
| ** | Includes Level 3 investments with an aggregate value of $0. |
See Notes to Financial Statements.
163
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
Industry Classification:
The industry classification of investments and liabilities in excess of other assets shown as a percentage of net assets as of July 31, 2023 were as follows:
| Software |
9.1 | % | ||
| Semiconductors & Semiconductor Equipment |
7.0 | |||
| Technology Hardware, Storage & Peripherals |
6.9 | |||
| Interactive Media & Services |
5.1 | |||
| Financial Services |
3.8 | |||
| Oil, Gas & Consumable Fuels |
3.7 | |||
| Pharmaceuticals |
3.6 | |||
| Banks |
3.4 | |||
| Broadline Retail |
2.9 | |||
| Health Care Providers & Services |
2.7 | |||
| Health Care Equipment & Supplies |
2.7 | |||
| Capital Markets |
2.5 | |||
| Specialty Retail |
2.1 | |||
| Insurance |
2.1 | |||
| Affiliated Mutual Fund |
2.1 | |||
| Hotels, Restaurants & Leisure |
2.0 | |||
| Machinery |
2.0 | |||
| Unaffiliated Exchange-Traded Funds |
2.0 | |||
| Automobiles |
1.9 | |||
| Biotechnology |
1.9 | |||
| Consumer Staples Distribution & Retail |
1.7 | |||
| Chemicals |
1.7 | |||
| Electric Utilities |
1.6 | |||
| Beverages |
1.5 | |||
| Aerospace & Defense |
1.5 | |||
| Life Sciences Tools & Services |
1.5 | |||
| Entertainment |
1.2 | |||
| Household Products |
1.2 | |||
| Specialized REITs |
1.1 | |||
| IT Services |
1.0 | |||
| Food Products |
1.0 | |||
| Ground Transportation |
0.9 | |||
| Professional Services |
0.8 | |||
| Electronic Equipment, Instruments & Components |
0.8 | |||
| Communications Equipment |
0.8 | |||
| Media |
0.8 | |||
| Industrial Conglomerates |
0.7 | |||
| Building Products |
0.7 | |||
| Multi-Utilities |
0.7 | |||
| Electrical Equipment |
0.6 | |||
| Diversified Telecommunication Services |
0.6 |
| Air Freight & Logistics |
0.6 | % | ||
| Tobacco |
0.6 | |||
| Metals & Mining |
0.6 | |||
| Commercial Services & Supplies |
0.5 | |||
| Textiles, Apparel & Luxury Goods |
0.5 | |||
| Household Durables |
0.5 | |||
| Consumer Finance |
0.5 | |||
| Energy Equipment & Services |
0.5 | |||
| Retail REITs |
0.4 | |||
| Residential REITs |
0.4 | |||
| Industrial REITs |
0.4 | |||
| Trading Companies & Distributors |
0.3 | |||
| Containers & Packaging |
0.3 | |||
| Health Care REITs |
0.2 | |||
| U.S. Treasury Obligation |
0.2 | |||
| Automobile Components |
0.2 | |||
| Passenger Airlines |
0.2 | |||
| Construction & Engineering |
0.2 | |||
| Wireless Telecommunication Services |
0.2 | |||
| Real Estate Management & Development |
0.2 | |||
| Construction Materials |
0.2 | |||
| Personal Care Products |
0.1 | |||
| Office REITs |
0.1 | |||
| Water Utilities |
0.1 | |||
| Distributors |
0.1 | |||
| Gas Utilities |
0.1 | |||
| Leisure Products |
0.1 | |||
| Mortgage Real Estate Investment Trusts (REITs) |
0.1 | |||
| Diversified Consumer Services |
0.1 | |||
| Hotel & Resort REITs |
0.1 | |||
| Independent Power & Renewable Electricity Producers |
0.0 | * | ||
| Health Care Technology |
0.0 | * | ||
| Diversified REITs |
0.0 | * | ||
| Marine Transportation |
0.0 | * |
See Notes to Financial Statements.
164
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
Industry Classification (continued):
| Paper & Forest Products |
0.0 | *% | ||
|
|
|
|||
| 100.5 | ||||
| Liabilities in excess of other assets |
(0.5 | ) | ||
|
|
|
|||
| 100.0 | % | |||
|
|
|
| * | Less than 0.05% |
Effects of Derivative Instruments on the Financial Statements and Primary Underlying Risk Exposure:
The Fund invested in derivative instruments during the reporting period. The primary type of risk associated with these derivative instruments is equity risk. See the Notes to Financial Statements for additional detail regarding these derivative instruments and their risks. The effect of such derivative instruments on the Fund’s financial position and financial performance as reflected in the Statement of Assets and Liabilities and Statement of Operations is presented in the summary below.
Fair values of derivative instruments as of July 31, 2023 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 | $ | 52,968 | * | — | $— | ||||
|
|
|
| ||||||||
| * | Includes cumulative appreciation (depreciation) as reported in the schedule of open futures and centrally cleared swap contracts. Only unsettled variation margin receivable (payable) is reported within the Statement of Assets and Liabilities. |
The effects of derivative instruments on the Statement of Operations for the year ended July 31, 2023 are as follows:
| Amount of Realized Gain (Loss) on Derivatives Recognized in Income |
||||
| Derivatives not accounted for as hedging instruments, carried at fair value |
Futures | |||
| Equity contracts |
$ | 119,273 | ||
|
|
|
|||
See Notes to Financial Statements.
165
PGIM Quant Solutions US Broad Market Index Fund
Schedule of Investments (continued)
as of July 31, 2023
| Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income |
||||
| Derivatives not accounted for as hedging instruments, carried at fair value |
Futures | |||
| Equity contracts |
$ | (53,016 | ) | |
|
|
|
|||
For the year ended July 31, 2023, the Fund’s average volume of derivative activities is as follows:
| Derivative Contract Type | Average Volume of Derivative Activities* | |
|
| ||
| Futures Contracts - Long Positions (1) |
$1,040,550 | |
|
| ||
| * | Average volume is based on average quarter end balances as noted for the year ended July 31, 2023. |
| (1) | Notional Amount in USD. |
See Notes to Financial Statements.
166
PGIM Quant Solutions US Broad Market Index Fund
Statement of Assets & Liabilities
as of July 31, 2023
| Assets |
||||
| Investments at value: |
||||
| Unaffiliated investments (cost $19,775,988) |
$ | 40,980,453 | ||
| Affiliated investments (cost $882,763) |
892,035 | |||
| Cash |
119 | |||
| Dividends receivable |
27,717 | |||
| Receivable for Fund shares sold |
13,717 | |||
| Due from Manager |
11,613 | |||
| Due from broker—variation margin futures |
1,600 | |||
| Prepaid expenses and other assets |
4,924 | |||
|
|
|
|||
| Total Assets |
41,932,178 | |||
|
|
|
|||
| Liabilities |
||||
| Payable for Fund shares purchased |
165,112 | |||
| Payable for investments purchased |
26,812 | |||
| Audit fee payable |
24,250 | |||
| Custodian and accounting fees payable |
22,101 | |||
| Accrued expenses and other liabilities |
12,082 | |||
| Shareholders’ reports fee payable |
7,640 | |||
| Trustees’ fees payable |
830 | |||
| Affiliated transfer agent fee payable |
99 | |||
|
|
|
|||
| Total Liabilities |
258,926 | |||
|
|
|
|||
| Net Assets |
$ | 41,673,252 | ||
|
|
|
|||
| Net assets were comprised of: |
||||
| Paid-in capital |
$ | 18,168,914 | ||
| Total distributable earnings (loss) |
23,504,338 | |||
|
|
|
|||
| Net assets, July 31, 2023 |
$ | 41,673,252 | ||
|
|
|
|||
| Class R6 |
||||
| Net asset value, offering price and redemption price per share, ($41,673,252 ÷ 2,414,881 shares of beneficial interest issued and outstanding) |
$ | 17.26 | ||
|
|
|
|||
See Notes to Financial Statements.
167
PGIM Quant Solutions US Broad Market Index Fund
Statement of Operations
Year Ended July 31, 2023
| Net Investment Income (Loss) |
||||
| Income |
||||
| Unaffiliated dividend income (net of $178 foreign withholding tax) |
$ | 708,525 | ||
| Affiliated dividend income |
16,404 | |||
| Interest income |
3,493 | |||
|
|
|
|||
| Total income |
728,422 | |||
|
|
|
|||
| Expenses |
||||
| Management fee |
75,804 | |||
| Custodian and accounting fees |
38,716 | |||
| Professional fees |
35,168 | |||
| Audit fee |
24,250 | |||
| Shareholders’ reports |
19,251 | |||
| Fund data services |
10,454 | |||
| Trustees’ fees |
9,986 | |||
| Commitment fees |
5,921 | |||
| Transfer agent’s fees and expenses (including affiliated expense of $633) |
833 | |||
| Registration fees |
372 | |||
| Miscellaneous |
7,377 | |||
|
|
|
|||
| Total expenses |
228,132 | |||
| Less: Fee waiver and/or expense reimbursement |
(142,280 | ) | ||
|
|
|
|||
| Net expenses |
85,852 | |||
|
|
|
|||
| Net investment income (loss) |
642,570 | |||
|
|
|
|||
| Realized And Unrealized Gain (Loss) On Investments |
||||
| Net realized gain (loss) on: |
||||
| Investment transactions (including affiliated of $(523)) |
3,577,443 | |||
| Futures transactions |
119,273 | |||
|
|
|
|||
| 3,696,716 | ||||
|
|
|
|||
| Net change in unrealized appreciation (depreciation) on: |
||||
| Investments (including affiliated of $(1,473)) |
323,814 | |||
| Futures |
(53,016 | ) | ||
|
|
|
|||
| 270,798 | ||||
|
|
|
|||
| Net gain (loss) on investment transactions |
3,967,514 | |||
|
|
|
|||
| Net Increase (Decrease) In Net Assets Resulting From Operations |
$ | 4,610,084 | ||
|
|
|
|||
See Notes to Financial Statements.
168
PGIM Quant Solutions US Broad Market Index Fund
Statements of Changes in Net Assets
| Year Ended July 31, |
||||||||
|
|
|
|||||||
| 2023 | 2022 | |||||||
| Increase (Decrease) in Net Assets |
||||||||
| Operations |
||||||||
| Net investment income (loss) |
$ | 642,570 | $ | 673,536 | ||||
| Net realized gain (loss) on investment transactions |
3,696,716 | 6,151,973 | ||||||
| Net change in unrealized appreciation (depreciation) on investments |
270,798 | (8,884,112 | ) | |||||
|
|
|
|
|
|||||
| Net increase (decrease) in net assets resulting from operations |
4,610,084 | (2,058,603 | ) | |||||
|
|
|
|
|
|||||
| Dividends and Distributions |
||||||||
| Distributions from distributable earnings |
||||||||
| Class R6 |
(4,045,399 | ) | (6,669,113 | ) | ||||
|
|
|
|
|
|||||
| Fund share transactions |
||||||||
| Net proceeds from shares sold (459,582 and 1,169,135 shares, respectively) |
7,194,226 | 21,079,544 | ||||||
| Net asset value of shares issued in reinvestment of dividends and distributions (268,976 and 354,551 shares, respectively) |
4,045,399 | 6,669,113 | ||||||
| Cost of shares purchased (1,077,681 and 2,001,263 shares, respectively) |
(16,690,264 | ) | (36,809,081 | ) | ||||
|
|
|
|
|
|||||
| Net increase (decrease) in net assets from Fund share transactions |
(5,450,639 | ) | (9,060,424 | ) | ||||
|
|
|
|
|
|||||
| Total increase (decrease) |
(4,885,954 | ) | (17,788,140 | ) | ||||
| Net Assets: |
||||||||
| Beginning of year |
46,559,206 | 64,347,346 | ||||||
|
|
|
|
|
|||||
| End of year |
$ | 41,673,252 | $ | 46,559,206 | ||||
|
|
|
|
|
|||||
See Notes to Financial Statements.
169
PGIM Quant Solutions US Broad Market Index Fund
Financial Highlights
| Class R6 Shares | ||||||||||||||||||||
| Year Ended July 31, | ||||||||||||||||||||
| 2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
| Per Share Operating Performance(a): |
||||||||||||||||||||
| Net Asset Value, Beginning of Year |
$16.84 | $19.85 | $14.80 | $13.60 | $12.99 | |||||||||||||||
| Income (loss) from investment operations: |
||||||||||||||||||||
| Net investment income (loss) |
0.24 | 0.22 | 0.22 | 0.23 | 0.23 | |||||||||||||||
| Net realized and unrealized gain (loss) on investment transactions |
1.66 | (0.93 | ) | 5.15 | 1.22 | 0.64 | ||||||||||||||
| Total from investment operations |
1.90 | (0.71 | ) | 5.37 | 1.45 | 0.87 | ||||||||||||||
| Less Dividends and Distributions: |
||||||||||||||||||||
| Dividends from net investment income |
(0.25 | ) | (0.27 | ) | (0.21 | ) | (0.23 | ) | (0.19 | ) | ||||||||||
| Distributions from net realized gains |
(1.23 | ) | (2.03 | ) | (0.11 | ) | (0.02 | ) | (0.07 | ) | ||||||||||
| Total dividends and distributions |
(1.48 | ) | (2.30 | ) | (0.32 | ) | (0.25 | ) | (0.26 | ) | ||||||||||
| Net asset value, end of year |
$17.26 | $16.84 | $19.85 | $14.80 | $13.60 | |||||||||||||||
| Total Return(b): |
12.59 | % | (4.80 | )% | 36.70 | % | 10.71 | % | 6.95 | % | ||||||||||
| Ratios/Supplemental Data: |
||||||||||||||||||||
| Net assets, end of year (000) |
$ | 41,673 | $ | 46,559 | $ | 64,347 | $ | 62,108 | $ | 45,134 | ||||||||||
| Average net assets (000) |
$ | 42,113 | $ | 56,240 | $ | 72,943 | $ | 49,589 | $ | 40,825 | ||||||||||
| Ratios to average net assets(c): |
||||||||||||||||||||
| Expenses after waivers and/or expense reimbursement |
0.20 | % | 0.20 | % | 0.20 | % | 0.20 | % | 0.20 | % | ||||||||||
| Expenses before waivers and/or expense reimbursement |
0.54 | % | 0.47 | % | 0.38 | % | 0.52 | % | 0.59 | % | ||||||||||
| Net investment income (loss) |
1.53 | % | 1.20 | % | 1.27 | % | 1.71 | % | 1.78 | % | ||||||||||
| Portfolio turnover rate(d) |
13 | % | 29 | % | 28 | % | 23 | % | 15 | % | ||||||||||
| (a) | Calculated based on average shares outstanding during the year. |
| (b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. |
| (c) | Does not include expenses of the underlying funds in which the Fund invests. |
| (d) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
170
Notes to Financial Statements/Consolidated Financial Statements
| 1. | Organization |
Prudential Investment Portfolios 2 (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 (consolidated financial statements for Commodity Strategies Fund) relate only to the following series of the RIC: PGIM Jennison Small-Cap Core Equity Fund, PGIM Core Conservative Bond Fund, PGIM TIPS Fund, PGIM Quant Solutions Mid-Cap Core Fund, PGIM Quant Solutions US Broad Market Index Fund, each of which are diversified funds for the purposes of the 1940 Act, and PGIM Quant Solutions Commodity Strategies Fund (the “Commodity Strategies Fund”), which is a non-diversified fund for purposes of the 1940 Act (each, a “Fund” and collectively, the “Funds”).
The Commodity Strategies Fund wholly owns and controls the PGIM QMA Commodity Strategies Subsidiary, Ltd. (the “Cayman Subsidiary”), a company organized under the laws of the Cayman Islands. The Cayman Subsidiary is not registered as an investment company under the 1940 Act. The consolidated financial statements of the Commodity Strategies Fund include the financial results of the Cayman Subsidiary.
In accordance with the accounting rules relating to reporting of a wholly-owned subsidiary, the Consolidated Schedule of Investments includes positions of the Commodity Strategies Fund and the Cayman Subsidiary. These consolidated financial statements include the accounts of the Commodity Strategies Fund and the Cayman Subsidiary. All significant inter-company balances and transactions between the Commodity Strategies Fund and the Cayman Subsidiary have been eliminated in consolidation. The Commodity Strategies Fund will seek to gain exposure to commodities, commodities-related instruments, derivatives and other investments by directly investing in those instruments or through investments in the Cayman Subsidiary. The Cayman Subsidiary participates in the same investment objective as the Commodity Strategies Fund. The Cayman Subsidiary pursues its investment objective by investing in commodities, commodities-related instruments, derivatives and other investments. The Cayman Subsidiary (unlike the Commodity Strategies Fund) may invest without limitation in these instruments. However, the Cayman Subsidiary is otherwise subject to the same investment restrictions and limitations, and follows the same compliance policies and procedures, as the Commodity Strategies Fund.
The Commodity Strategies Fund’s disclosures and operations are subject to compliance with applicable regulations governing commodity pools including Commodity Futures Trading Commission (CFTC) rules.
As of July 31, 2023, the Cayman Subsidiary had net assets of $10,193,017, representing 16.6% of the Commodity Strategies Fund’s net assets.
171
Notes to Financial Statements/Consolidated Financial Statements
The Funds have the following investment objectives:
| Fund | Investment Objective(s) | |||
| PGIM Jennison Small-Cap Core Equity Fund |
Outperform the Russell 2000 Index. | |||
| PGIM Core Conservative Bond Fund |
Outperform the Bloomberg U.S. Aggregate Bond Index over full market cycles. | |||
| PGIM TIPS Fund |
Outperform the Bloomberg U.S. Treasury Inflation-Protected Index. | |||
| PGIM Quant Solutions Commodity Strategies Fund |
Generate returns over time in excess of the Bloomberg Commodity Index. | |||
| PGIM Quant Solutions Mid-Cap Core Fund |
Outperform the S&P Mid-Cap 400 Index. | |||
| PGIM Quant Solutions US Broad Market Index Fund |
Seek to provide investment results that approximate the performance of the S&P Composite 1500 Index. | |||
| 2. | Accounting Policies |
The Funds follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 946 Financial Services — Investment Companies. The following is a summary of significant accounting policies followed by the Funds in the preparation of its financial statements. The policies conform to U.S. generally accepted accounting principles (“GAAP”). The Funds consistently follow such policies in the preparation of their financial statements (consolidated financial statements for Commodity Strategies).
Securities Valuation: The Funds hold securities and other assets and liabilities that are fair valued as of the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. As described in further detail below, the Funds’ investments are valued daily based on a number of factors, including the type of investment and whether market quotations are readily available. The RIC’s Board of Trustees (the “Board”) has approved the Funds’ valuation policies and procedures for security valuation and designated PGIM Investments LLC (“PGIM Investments” or the “Manager”) as the “Valuation Designee,” as defined by Rule 2a-5(b) under the 1940 Act, to perform the fair value determination relating to all Funds investments. Pursuant to the Board’s oversight, the Valuation Designee has established a Valuation Committee to perform the duties and responsibilities as Valuation Designee under Rule 2a-5. The valuation procedures permit the Funds to utilize independent pricing vendor services, quotations from market makers, and
172
alternative valuation methods when market quotations are either not readily available or not deemed representative of fair value. Fair value is the estimated price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date.
For the fiscal reporting year-end, securities and other assets and liabilities were fair valued at the close of the last U.S. business day. Trading in certain foreign securities may occur when the NYSE is closed (including weekends and holidays). Because such foreign securities trade in markets that are open on weekends and U.S. holidays, the values of some of the Funds’ foreign investments may change on days when investors cannot purchase or redeem Fund shares.
Various inputs determine how the Funds’ investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the Schedule of Investments and referred to herein as the “fair value hierarchy” in accordance with FASB ASC Topic 820 — Fair Value Measurement (Consolidated Schedule of Investments for Commodity Strategies).
Common or preferred stocks, exchange-traded funds (ETFs) and derivative instruments, if applicable, that are traded on a national securities exchange are valued at the last sale price as of the close of trading on the applicable exchange where the security principally trades. Securities traded via NASDAQ are valued at the NASDAQ official closing price. To the extent these securities are valued at the last sale price or NASDAQ official closing price, they are classified as Level 1 in the fair value hierarchy. In the event that no sale or official closing price on a valuation date exists, these securities are generally valued at the mean between the last reported bid and ask prices, or at the last bid price in the absence of an ask price. These securities are classified as Level 2 in the fair value hierarchy.
Foreign equities traded on foreign securities exchanges are generally valued using pricing vendor services that provide model prices derived using adjustment factors based on information such as local closing price, relevant general and sector indices, currency fluctuations, depositary receipts, and futures, as applicable. Securities valued using such model prices are classified as Level 2 in the fair value hierarchy. The models generate an evaluated adjustment factor for each security, which is applied to the local closing price to adjust it for post closing market movements up to the time the Funds are valued. Utilizing that evaluated adjustment factor, the vendor provides an evaluated price for each security. If the vendor does not provide an evaluated price, securities are valued in accordance with exchange-traded common and preferred stock valuation policies discussed above.
Investments in open-end funds (other than ETFs) are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.
173
Notes to Financial Statements/Consolidated Financial Statements
Fixed income securities traded in the OTC market are generally classified as Level 2 in the fair value hierarchy. Such fixed income securities are typically valued using the market approach which generally involves obtaining data from an approved independent third-party vendor source. The Funds utilize the market approach as the primary method to value securities when market prices of identical or comparable instruments are available. The third-party vendors’ valuation techniques used to derive the evaluated bid price are based on evaluating observable inputs, including but not limited to, yield curves, yield spreads, credit ratings, deal terms, tranche level attributes, default rates, cash flows, prepayment speeds, broker/dealer quotations and reported trades. Certain Level 3 securities are also valued using the market approach when obtaining a single broker quote or when utilizing transaction prices for identical securities that have been used in excess of five business days. During the reporting period, there were no changes to report with respect to the valuation approach and/or valuation techniques discussed above.
Securities and other assets that cannot be priced according to the methods described above are valued based on policies and procedures approved by the Board. In the event that unobservable inputs are used when determining such valuations, the securities will be classified as Level 3 in the fair value hierarchy. Altering one or more unobservable inputs may result in a significant change to a Level 3 security’s fair value measurement.
When determining the fair value of securities, some of the factors influencing the valuation include: the nature of any restrictions on disposition of the securities; assessment of the general liquidity of the securities; the issuer’s financial condition and the markets in which it does business; the cost of the investment; the size of the holding and the capitalization of the issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; and any available analyst media or other reports or information deemed reliable by the Valuation Designee regarding the issuer or the markets or industry in which it operates. Using fair value to price securities may result in a value that is different from a security’s most recent closing price and from the price used by other unaffiliated mutual funds to calculate their net asset values.
Foreign Currency Translation: The books and records of the Funds are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis:
(i) market value of investment securities, other assets and liabilities — at the exchange rate as of the valuation date;
(ii) purchases and sales of investment securities, income and expenses — at the rates of exchange prevailing on the respective dates of such transactions.
174
Although the net assets of the Funds are presented at the foreign exchange rates and market values at the close of the period, the Funds do not generally isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities held at the end of the period. Similarly, the Funds do not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities sold during the period. Accordingly, holding period unrealized and realized foreign currency gains (losses) are included in the reported net change in unrealized appreciation (depreciation) on investments and net realized gains (losses) on investment transactions on the Statements of Operations. Notwithstanding the above, the Funds do isolate the effect of fluctuations in foreign currency exchange rates when determining the gain (loss) upon the sale or maturity of foreign currency denominated debt obligations; such amounts are included in net realized gains (losses) on foreign currency transactions.
Additionally, net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from the disposition of holdings of foreign currencies, currency gains (losses) realized between the trade and settlement dates on investment transactions, and the difference between the amounts of interest, dividends and foreign withholding taxes recorded on the Funds’ books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) arise from valuing foreign currency denominated assets and liabilities (other than investments) at period end exchange rates.
Commodities: The Commodity Strategies Fund gains exposure to commodity markets through direct investment of the Commodity Strategies Fund’s assets or through the Cayman Subsidiary. The Commodity Strategies Fund gains exposure to the commodity markets primarily through exchange-traded futures on commodities held by the Cayman Subsidiary. The Commodity Strategies Fund may invest up to 25% of its total assets in the Cayman Subsidiary. The Cayman Subsidiary may invest in commodity investments without limit. The Fund invests in the Cayman Subsidiary in order to gain exposure to commodities within the limitations of the federal tax law requirements applicable to regulated investment companies such as the Fund. The Commodity Strategies Fund may invest directly in commodity-linked structured notes (CLNs). The Commodity Strategies Fund may also gain direct exposure to commodities through direct investment in certain exchange-traded funds (ETFs) whose returns are linked to commodities or commodity indices within the limit of applicable tax law. Commodities are assets that have tangible properties, such as oil, agriculture products and precious metals. The value of commodities may be affected by, among other things, changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargos, tariffs and international economic, political and regulatory developments. These factors may have a larger impact on commodity prices and commodity linked instruments than on traditional securities. Certain commodities are also subject to limited pricing flexibility because of supply and demand factors. Others are subject to broad price fluctuations as a result of the volatility of the prices for certain raw materials and the
175
Notes to Financial Statements/Consolidated Financial Statements
instability of supplies of other materials. These additional variables may create additional risks which subject the Commodity Strategies Fund’s investments to greater volatility than investments in traditional securities.
Financial/Commodity Futures Contracts: A futures contract is an agreement to purchase (long) or sell (short) an agreed amount of securities at a set price for delivery on a future date. Upon entering into a futures contract, the Funds are 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 Funds each day, depending on the daily fluctuations in the value of the underlying security. Such variation margin is recorded for financial statement purposes on a daily basis as unrealized gain (loss). When the contract expires or is closed, the gain (loss) is realized and is presented in the Statement of Operations (Consolidated Statement of Operations for Commodity Strategies Fund) as net realized gain (loss) on futures transactions.
The Funds invested in financial and/or commodity futures contracts in order to hedge their existing portfolio securities, or securities the Funds intend to purchase, against fluctuations in value caused by changes in prevailing interest rates. Should interest rates move unexpectedly, the Funds may not achieve the anticipated benefits of the futures contracts and may realize a loss. The Commodity Strategies Fund invested in commodity futures contracts in order to hedge or gain exposure to commodity markets. The use of futures transactions involves the risk of imperfect correlation in movements in the price of futures contracts, interest rates and the underlying hedged assets. Since futures contracts are exchange-traded, there is minimal counterparty credit risk to the Funds since the exchanges’ clearinghouse acts as counterparty to all exchange-traded futures and guarantees the futures contracts against default.
Master Netting Arrangements: The RIC, on behalf of the Funds, 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 a Fund. A master netting arrangement between the Fund and the counterparty permits the Fund to offset amounts payable by the Fund to the same counterparty against amounts to be received and by the receipt of collateral from the counterparty by the Funds to cover the Funds’ exposure to the counterparty. However, there is no assurance that such mitigating factors are easily enforceable. In addition to master netting arrangements, the right to set-off exists when all the conditions are met such that each of the parties owes the other determinable amounts, the reporting party has the right to set-off the amount owed with the amount owed by the other party, the reporting party intends to set-off and the right of set-off is enforceable by law.
176
Delayed-Delivery Transactions: Certain Funds purchased or sold securities on a when-issued or delayed-delivery and forward commitment basis, including TBA securities. These transactions involve a commitment by the Funds to purchase or sell securities for a predetermined price or yield, with payment and delivery taking place beyond the customary settlement period. When delayed-delivery purchases are outstanding, the Funds will set aside and maintain an amount of liquid assets sufficient to meet the purchase price in a segregated account until the settlement date. When purchasing a security on a delayed-delivery basis, the Funds assume the rights and risks of ownership of the security, including the risk of price and yield fluctuations, and takes such fluctuations into account when determining its net asset value. The Funds may dispose of or renegotiate a delayed-delivery transaction subsequent to establishment, and may sell when-issued securities before they are delivered, which may result in a realized gain (loss). When selling a security on a delayed-delivery basis, the Funds forfeit their eligibility to realize future gains (losses) with respect to the security.
Securities Lending: The Funds lend their portfolio securities to banks and broker-dealers. The loans are secured by collateral at least equal to the market value of the securities loaned. Collateral pledged by each borrower is invested in an affiliated money market fund and is marked to market daily, based on the previous day’s market value, such that the value of the collateral exceeds the value of the loaned securities. In the event of significant appreciation in value of the securities on loan on the last business day of the reporting period, the financial statements may reflect a collateral value that is less than the market value of the loaned securities. Such shortfall is remedied as described above. Loans are subject to termination at the option of the borrower or the Fund. Upon termination of the loan, the borrower will return to the Fund securities identical to the loaned securities. The remaining open loans of the securities lending transactions are considered overnight and continuous. Should the borrower of the securities fail financially, the Fund has the right to repurchase the securities in the open market using the collateral.
The Fund recognizes income, net of any rebate and securities lending agent fees, for lending its securities in the form of fees or interest on the investment of any cash received as collateral. The borrower receives all interest and dividends from the securities loaned and such payments are passed back to the lender in amounts equivalent thereto, which are reflected in interest income or unaffiliated dividend income based on the nature of the payment on the Statement of Operations. The Fund also continues to recognize any unrealized gain (loss) in the market price of the securities loaned and on the change in the value of the collateral invested that may occur during the term of the loan. In addition, realized gain (loss) is recognized on changes in the value of the collateral invested upon liquidation of the collateral. Net earnings from securities lending are disclosed in the Statement of Operations.
Mortgage Dollar Rolls: Certain Funds entered into mortgage dollar rolls in which the Funds sell mortgage securities for delivery in the current month, realizing a gain (loss), and simultaneously enter into contracts to repurchase somewhat similar (same type, coupon and maturity) securities on a specified future date. During the roll period, the Funds forgo
177
Notes to Financial Statements/Consolidated Financial Statements
principal and interest paid on the securities. The Funds are compensated by the interest earned on the cash proceeds of the initial sale and by the lower repurchase price at the future date. The difference between the sale proceeds and the lower repurchase price is recorded as a realized gain on investment transactions. The Funds maintain a segregated account, the dollar value of which is at least equal to its obligations, with respect to dollar rolls. The Funds are subject to the risk that the market value of the securities the Funds are obligated to repurchase under the agreement may decline below the repurchase price.
Equity and Mortgage Real Estate Investment Trusts (collectively REITs): Certain Funds invested in REITs, which report information on the source of their distributions annually. Based on current and historical information, a portion of distributions received from REITs during the period is estimated to be dividend income, capital gain or return of capital and recorded accordingly. When material, these estimates are adjusted periodically when the actual source of distributions is disclosed by the REITs.
Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized gains (losses) from investment and currency transactions are calculated on the specific identification method. Dividend income is recorded on the ex-date, or for certain foreign securities, when the Funds become aware of such dividends. Interest income, including amortization of premium and accretion of discount on debt securities, as required, is recorded on the accrual basis. Expenses are recorded on an accrual basis, which may require the use of certain estimates by management that may differ from actual expense amounts.
Taxes: It is each Fund’s policy to continue to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net investment income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required. Withholding taxes on foreign dividends, interest and capital gains, if any, are recorded, net of reclaimable amounts, at the time the related income is earned.
Dividends and Distributions: Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from GAAP, are recorded on the ex-date. Permanent book/tax differences relating to income and gain (loss) are reclassified between total distributable earnings (loss) and paid-in capital, 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
178
distributions to shareholders, including but not limited to adverse market conditions or portfolio holding-specific events.
| Expected Distribution Schedule to Shareholders* | Frequency | |||
| Each Fund other than PGIM Core Conservative Bond Fund and PGIM TIPS Fund: |
||||
| Net Investment Income |
Annually | |||
| Short-Term Capital Gains |
Annually | |||
| Long-Term Capital Gains |
Annually | |||
| PGIM Core Conservative Bond Fund and PGIM TIPS Fund: |
||||
| Net Investment Income |
Monthly | |||
| Short-Term Capital Gains |
Annually | |||
| Long-Term Capital Gains |
Annually | |||
| * | Under certain circumstances, each Fund may make more than one distribution of short-term and/or long-term capital gains during a fiscal year. |
Estimates: The preparation of financial statements (consolidated financial statements for Commodity Strategies Fund) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
| 3. | Agreements |
The RIC, on behalf of the Funds, has a management agreement with the Manager pursuant to which it has responsibility for all investment advisory services, including supervision of the subadviser’s performance of such services, and for rendering administrative services.
| Fund | Subadviser(s) | |
| PGIM Jennison Small-Cap Core Equity Fund |
Jennison Associates, LLC (“Jennison”)(a wholly-owned subsidiary of PGIM, Inc.) | |
| PGIM Core Conservative Bond Fund |
PGIM Limited (an indirect, wholly-owned subsidiary of PGIM, Inc.); PGIM Fixed Income (a business unit of PGIM, Inc.) | |
| PGIM TIPS Fund |
PGIM Fixed Income | |
| PGIM Quant Solutions Commodity Strategies Fund |
PGIM Quantitative Solutions LLC (“PGIM Quantitative Solutions”)(a wholly-owned subsidiary of PGIM, Inc.) | |
| PGIM Quant Solutions Mid-Cap Core Fund |
PGIM Quantitative Solutions | |
| PGIM Quant Solutions US Broad Market Index Fund |
PGIM Quantitative Solutions | |
Fees payable under the management agreement are computed daily and paid monthly. For the reporting period ended July 31, 2023, the contractual and effective management fee rates were as follows:
| Fund | Management Fee | Effective Management Fee, |
Effective Management Fee, after any waivers and/or expense | |||
| PGIM Jennison Small-Cap Core Equity Fund |
0.75% of average daily net assets |
0.75% | 0.45% |
179
Notes to Financial Statements/Consolidated Financial Statements
| Fund | Management Fee | Effective Management Fee, |
Effective Management Fee, after any waivers and/or expense | |||||||||
| PGIM Core Conservative Bond Fund |
0.27% of average daily net assets |
0.27 | % | 0.14 | % | |||||||
| PGIM TIPS Fund |
0.23% of average daily net assets |
0.23 | 0.23 | |||||||||
| PGIM Quant Solutions Commodity Strategies Fund |
0.40% of average daily net assets |
0.47 | * | 0.40 | ||||||||
| PGIM Quant Solutions Mid-Cap Core Fund |
0.50% of average daily net assets | 0.50 | —# | |||||||||
| PGIM Quant Solutions US Broad Market Index Fund |
0.18% of average daily net assets | 0.18 | —# | |||||||||
| * | The management fee paid to the Manager is accrued daily and payable monthly at an annual rate of 0.40% of the Fund’s average daily net assets. The Cayman Subsidiary has entered into a separate management agreement with the Manager whereby the Manager provides advisory and other services to the Cayman Subsidiary substantially similar to the services provided by the Manager to the Fund as discussed above. In consideration for these services, the Cayman Subsidiary pays the Manager a monthly fee at the annual rate of 0.40% of the Cayman Subsidiary’s average daily net assets. The consolidated management fee rate includes the Cayman Subsidiary. The Manager has contractually agreed to waive any management fees it receives for the Fund in an amount equal to the management fees paid by the Cayman Subsidiary. This waiver will remain in effect for as long as the Fund remains invested or intends to invest in the Cayman Subsidiary. |
| # | The management fee amount waived and/or expense reimbursement exceeds the management fee for the current period due to expense limitations described above. |
The Manager has contractually agreed, through November 30, 2024, to limit total annual operating expenses after fee waivers and/or expense reimbursements. This contractual waiver excludes interest, brokerage, taxes (such as income and foreign withholding taxes, stamp duty and deferred tax expenses), acquired fund fees and expenses, extraordinary expenses, and certain other Fund expenses such as dividend and interest expense and broker charges on short sales.
Fees and/or expenses waived and/or reimbursed by the Manager for the purpose of preventing the expenses from exceeding a certain expense ratio limit may be recouped by the Manager within the same fiscal year during which such waiver and/or reimbursement is made if such recoupment can be realized without exceeding the expense limit in effect at the time of the recoupment for that fiscal year. The expense limitations attributable to each fund are as follows:
| Fund | Fee Waivers and/or Expense Limitations | |
| PGIM Jennison Small-Cap Core Equity Fund | contractually limit expenses to 0.95% | |
| PGIM Core Conservative Bond Fund | contractually limit expenses to 0.50% | |
180
| Fund | Fee Waivers and/or Expense Limitations | |
| PGIM TIPS Fund | contractually limit expenses to 0.40% | |
| PGIM Quant Solutions Commodity Strategies Fund | contractually limit expenses to 0.70%* | |
| PGIM Quant Solutions Mid-Cap Core Fund | contractually limit expenses to 0.80% | |
| PGIM Quant Solutions US Broad Market Index Fund | contractually limit expenses to 0.20% | |
| * | The Manager has contractually agreed, to limit total annual operating expenses after fee waivers and/or expense reimbursements to 0.70% of average daily net assets for Class Z shares and 0.70% of average daily net assets for Class R6 shares. Where applicable, the Manager agrees to waive management fees or shared operating expenses on any share class to the same extent that it waives such expenses on any other share class. In addition, total annual operating expenses for Class R6 shares will not exceed total annual operating expenses for Class Z shares. |
The RIC, on behalf of the Funds, has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class Z and Class R6 shares of the Funds. No distribution or service fees are paid to PIMS as distributor of the Class Z and Class R6 shares of the Funds.
PGIM Investments, PIMS, PGIM, Inc., PGIM Limited, Jennison 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 Funds’ transfer agent and shareholder servicing agent. Transfer agent’s fees and expenses in the Statement of Operations (Consolidated Statement of Operations for Commodity Strategies Fund) include certain out-of-pocket expenses paid to non-affiliates, where applicable.
The Funds may invest its overnight sweep cash in the PGIM Core Government Money Market Fund (the “Core Government Fund”), a series of the Prudential Government Money Market Fund, Inc., and its securities lending cash collateral in the PGIM Institutional Money Market Fund (the “Money Market Fund”), a series of Prudential Investment Portfolios 2, each registered under the 1940 Act and managed by PGIM Investments. PGIM Investments and/or its affiliates are paid fees or reimbursed for providing their services to the Core Government Fund and the Money Market Fund. In addition to the realized and unrealized gains on investments in the Core Government Fund and the Money Market Fund, earnings from such investments are disclosed on the Statement of Operations (Consolidated Statement of Operations for Commodity Strategies) as “Affiliated dividend income” and “Income from securities lending, net”, respectively.
181
Notes to Financial Statements/Consolidated Financial Statements
The Funds may enter into certain securities purchase or sale transactions under Board approved Rule 17a-7 procedures. Rule 17a-7 is an exemptive rule under the 1940 Act that, subject to certain conditions, permits purchase and sale transactions among affiliated investment companies, or between an investment company and a person that is affiliated solely by reason of having a common (or affiliated) investment adviser, common directors/trustees, and/or common officers. For the year ended July 31, 2023, no Rule 17a-7 transactions were entered into by the Funds.
| 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 year ended July 31, 2023, were as follows:
| Fund | Cost of Purchases |
Proceeds from Sales | ||||||||
| PGIM Jennison Small-Cap Core Equity Fund |
$ | 10,885,204 | $ | 13,436,233 | ||||||
| PGIM Core Conservative Bond Fund |
43,285,511 | 44,386,749 | ||||||||
| PGIM TIPS Fund |
— | — | ||||||||
| PGIM Quant Solutions Commodity Strategies Fund |
— | — | ||||||||
| PGIM Quant Solutions Mid-Cap Core Fund |
16,585,956 | 19,928,400 | ||||||||
| PGIM Quant Solutions US Broad Market Index Fund |
5,413,037 | 14,132,089 | ||||||||
A summary of the cost of purchases and proceeds from sales of shares of affiliated mutual funds and other investments for the year ended July 31, 2023, is presented as follows:
PGIM Jennison Small-Cap Core Equity Fund:
| Value, Beginning of Year |
Cost of Purchases |
Proceeds from Sales |
Change in Unrealized Gain (Loss) |
Realized Gain (Loss) |
Value, End of Year |
Shares, End of Year |
Income | |||||||||||||||||||||
| Short-Term Investments - Affiliated Mutual Funds: |
||||||||||||||||||||||||||||
| PGIM Core Government Money Market Fund(1)(wi) |
||||||||||||||||||||||||||||
| $ — | $3,624,662 | $3,270,685 | $— | $— | $353,977 | 353,977 | $17,034 | |||||||||||||||||||||
| PGIM Institutional Money Market Fund(1)(b)(wi) |
||||||||||||||||||||||||||||
| 141,653 | 207,896 | 349,610 | (5 | ) | 66 | — | — | 904 | (2) | |||||||||||||||||||
| $141,653 | $3,832,558 | $3,620,295 | $(5 | ) | $66 | $353,977 | $17,938 | |||||||||||||||||||||
182
PGIM Core Conservative Bond Fund:
| Value, Beginning of Year |
Cost of Purchases |
Proceeds from Sales |
Change in Unrealized Gain (Loss) |
Realized Gain (Loss) |
Value, End of Year |
Shares, End of Year |
Income | |||||||||||||||||||||
| Short-Term Investments - Affiliated Mutual Fund: |
|
|||||||||||||||||||||||||||
| PGIM Core Government Money Market Fund(1)(wj) |
|
|||||||||||||||||||||||||||
| $— |
$8,049,103 | $7,322,742 | $— | $— | $726,361 | 726,361 | $13,346 | |||||||||||||||||||||
| PGIM TIPS Fund: |
| |||||||||||||||||||||||||||
| Value, Beginning of Year |
Cost of Purchases |
Proceeds from Sales |
Change in Unrealized Gain (Loss) |
Realized Gain (Loss) |
Value, End of Year |
Shares, End of Year |
Income | |||||||||||||||||||||
| Short-Term Investments - Affiliated Mutual Fund: |
|
|||||||||||||||||||||||||||
| PGIM Core Government Money Market Fund(1)(wj) |
|
|||||||||||||||||||||||||||
| $— |
$13,825,824 | $10,392,753 | $— | $— | $3,433,071 | 3,433,071 | $28,463 | |||||||||||||||||||||
| PGIM Quant Solutions Mid-Cap Core Fund: |
| |||||||||||||||||||||||||||
| Value, Beginning of Year |
Cost of Purchases |
Proceeds from Sales |
Change in Unrealized Gain (Loss) |
Realized Gain (Loss) |
Value, End of Year |
Shares, End of Year |
Income | |||||||||||||||||||||
| Short-Term Investments - Affiliated Mutual Funds: |
|
|||||||||||||||||||||||||||
| PGIM Core Government Money Market Fund(1)(wi) |
|
|||||||||||||||||||||||||||
| $— |
$1,642,020 | $1,599,824 | $— | $— | $42,196 | 42,196 | $612 | |||||||||||||||||||||
| PGIM Institutional Money Market Fund(1)(b)(wi) |
|
|||||||||||||||||||||||||||
| — |
40,733 | 40,733 | — | — | — | — | 29 | (2) | ||||||||||||||||||||
| $— |
$1,682,753 | $1,640,557 | $— | $— | $42,196 | $641 | ||||||||||||||||||||||
| PGIM Quant Solutions US Broad Market Index Fund: |
| |||||||||||||||||||||||||||
| Value, Beginning of Year |
Cost of Purchases |
Proceeds from Sales |
Change in Unrealized Gain (Loss) |
Realized Gain (Loss) |
Value, End of Year |
Shares, End of Year |
Dividend Income |
|||||||||||||||||||||
| Long-Term Investments - Common Stock: |
|
|||||||||||||||||||||||||||
| Prudential Financial, Inc.(g) |
|
|||||||||||||||||||||||||||
| $44,096 |
$ 1,531 | $ 10,245 | $(1,473) | $(523) | $ 33,386 | 346 | $ 2,030 | |||||||||||||||||||||
183
Notes to Financial Statements/Consolidated Financial Statements
PGIM Quant Solutions US Broad Market Index Fund (cont’d.):
| Value, Beginning of Year |
Cost of Purchases |
Proceeds from Sales |
Change in Unrealized Gain (Loss) |
Realized Gain (Loss) |
Value, End of Year |
Shares, End of Year |
Dividend Income | |||||||||||||||
| Short-Term Investments - Affiliated Mutual Fund: |
||||||||||||||||||||||
| PGIM Core Government Money Market Fund(1)(wj) |
||||||||||||||||||||||
| $ — | $6,372,312 | $5,513,663 | $ — | $ — | $858,649 | 858,649 | $14,374 | |||||||||||||||
| $44,096 | $6,373,843 | $5,523,908 | $(1,473) | $(523) | $892,035 | $16,404 | ||||||||||||||||
| (1) | The Fund did not have any capital gain distributions during the reporting period. |
| (2) | The amount, or a portion thereof, represents the affiliated securities lending income shown on the Statement of Operations. |
| (b) | Represents security, or portion thereof, purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
| (g) | An affiliated security. |
| (wi) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Government Money Market Fund and PGIM Institutional Money Market Fund, if applicable. |
| (wj) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Government Money Market Fund. |
| 6. | Distributions and Tax Information |
Distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from GAAP, are recorded on the ex-date. In order to present total distributable earnings (loss) and paid-in capital in excess of par on the Statement of Assets and Liabilities that more closely represent their tax character, certain adjustments have been made to total distributable earnings (loss) and paid-in capital in excess of par for the Funds indicated below.
For the year ended July 31, 2023, the adjustments were as follows:
| Fund | Total Distributable Earnings (Loss) |
Paid-in Capital in Excess of Par | ||||||||
| PGIM Jennison Small-Cap Core Equity Fund(a) |
$ | (1,489,259 | ) | $ | 1,489,259 | |||||
| PGIM TIPS Fund(b) |
1,805 | (1,805 | ) | |||||||
| (a) | Redemptions In Kind Adjustments |
| (b) | Distribution in excess of income |
For the year ended July 31, 2023, the tax character of dividends paid as reflected in the Statement of Changes in Net Assets were as follows:
| Fund | Ordinary Income |
Long-Term Capital Gains |
Tax Return of Capital |
Total Dividends and Distributions | ||||||||||||||||
| PGIM Jennison Small-Cap Core Equity Fund |
$ | 107,054 | $ | — | $ | 37,626 | $ | 144,680 | ||||||||||||
| PGIM Core Conservative Bond Fund |
1,499,460 | — | 480 | 1,499,940 | ||||||||||||||||
184
| Fund | Ordinary Income |
Long-Term Capital Gains |
Tax Return of Capital |
Total Dividends and Distributions | ||||||||||||||||
| PGIM TIPS Fund |
$ | 4,062,626 | $ | — | $ | — | $ | 4,062,626 | ||||||||||||
| PGIM Quant Solutions Commodity Strategies Fund |
19,256,057 | — | — | 19,256,057 | ||||||||||||||||
| PGIM Quant Solutions Mid-Cap Core Fund |
— | 2,029,621 | — | 2,029,621 | ||||||||||||||||
| PGIM Quant Solutions US Broad Market Index Fund |
852,055 | 3,193,344 | — | 4,045,399 | ||||||||||||||||
For the year ended July 31, 2022, the tax character of dividends paid as reflected in the Statement of Changes in Net Assets were as follows:
| Fund | Ordinary Income |
Long-Term Capital Gains |
Tax Return of Capital |
Total Dividends and Distributions | ||||||||||||||||
| PGIM Jennison Small-Cap Core Equity Fund |
$ | 3,157,041 | $ | 3,655,323 | $ | — | $ | 6,812,364 | ||||||||||||
| PGIM Core Conservative Bond Fund |
1,215,907 | 188,580 | — | 1,404,487 | ||||||||||||||||
| PGIM TIPS Fund |
7,238,677 | 921,348 | — | 8,160,025 | ||||||||||||||||
| PGIM Quant Solutions Commodity Strategies Fund |
19,775,119 | — | — | 19,775,119 | ||||||||||||||||
| PGIM Quant Solutions Mid-Cap Core Fund |
2,710,777 | 1,999,060 | — | 4,709,837 | ||||||||||||||||
| PGIM Quant Solutions US Broad Market Index Fund |
1,421,797 | 5,247,316 | — | 6,669,113 | ||||||||||||||||
For the year ended July 31, 2023, the Funds indicated below had the following amounts of accumulated undistributed earnings on a tax basis:
| Fund | Undistributed Ordinary Income |
Undistributed Long-Term Capital Gains | ||||||||
| PGIM Jennison Small-Cap Core Equity Fund |
$ | — | $ | — | ||||||
| PGIM Core Conservative Bond Fund |
— | — | ||||||||
| PGIM TIPS Fund |
— | — | ||||||||
| PGIM Quant Solutions Commodity Strategies Fund |
1,191,719 | — | ||||||||
| PGIM Quant Solutions Mid-Cap Core Fund |
104,397 | 593,474 | ||||||||
| PGIM Quant Solutions US Broad Market Index Fund |
410,556 | 3,044,292 | ||||||||
The United States federal income tax basis of the Funds’ investments and the net unrealized appreciation/(depreciation) as of July 31, 2023 were as follows:
| Fund | Tax Basis | Gross Unrealized Appreciation |
Gross Unrealized Depreciation |
Net Unrealized Appreciation (Depreciation) | ||||||||||||||||
| PGIM Jennison Small-Cap Core Equity Fund |
$ | 7,520,247 | $ | 2,763,445 | $ | (364,592 | ) | $ | 2,398,853 | |||||||||||
| PGIM Core Conservative Bond Fund |
49,700,592 | 20,493 | (5,508,987 | ) | (5,488,494 | ) | ||||||||||||||
| PGIM TIPS Fund |
92,255,542 | — | (10,033,267 | ) | (10,033,267 | ) | ||||||||||||||
185
Notes to Financial Statements/Consolidated Financial Statements
| Fund | Tax Basis | Gross Unrealized Appreciation |
Gross Unrealized Depreciation |
Net Unrealized Appreciation (Depreciation) | ||||||||||||||||
| PGIM Quant Solutions Commodity Strategies Fund |
$ | 82,301,637 | $ | — | $ | (20,992,641 | ) | $ | (20,992,641 | ) | ||||||||||
| PGIM Quant Solutions Mid-Cap Core Fund |
11,207,853 | 2,369,885 | (373,501 | ) | 1,996,384 | |||||||||||||||
| PGIM Quant Solutions US Broad Market Index Fund |
21,822,996 | 21,872,597 | (1,823,105 | ) | 20,049,492 | |||||||||||||||
The difference between GAAP and tax basis was primarily attributable to deferred losses on wash sales, amortization of premiums, tax treatment of the investment in the Subsidiary and other GAAP to tax differences.
For federal income tax purposes, the following Funds had an approximated capital loss carryforward as of July 31, 2023 which can be carried forward for an unlimited period. No capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such losses.
| Fund | Capital Loss Carryforward |
Capital Loss Carryforward Utilized | ||||||||
| PGIM Jennison Small-Cap Core Equity Fund |
$ | 568,000 | $ | — | ||||||
| PGIM Core Conservative Bond Fund |
3,613,000 | — | ||||||||
| PGIM TIPS Fund |
5,603,000 | — | ||||||||
| PGIM Quant Solutions Commodity Strategies Fund |
476,000 | — | ||||||||
The Manager has analyzed the Funds’ tax positions taken on federal, state and local income tax returns for all open tax years and has concluded that no provision for income tax is required in the Funds’ financial statements (consolidated financial statements for Commodity Strategies Fund) for the current reporting period. Since tax authorities can examine previously filed tax returns, the Funds’ U.S. federal and state tax returns for each of the four fiscal years up to the most recent fiscal year ended July 31, 2023 are subject to such review.
| 7. | Capital and Ownership |
The Funds offer Class R6 shares and the Commodity Strategies Fund also offers Class Z. Class Z and Class R6 shares are not subject to any sales or redemption charge and are available exclusively for sale to a limited group of investors.
186
The RIC is authorized to issue an unlimited number of shares of beneficial interest, which may be divided into an unlimited number of series of such shares.
As of July 31, 2023, Prudential, through its affiliated entities, including affiliated funds (if applicable), owned shares of the Funds as follows:
| Fund | Number of Shares | Percentage of Outstanding Shares | ||||||||
| PGIM Jennison Small-Cap Core Equity Fund–Class R6 |
739,822 | 99.9 | % | |||||||
| PGIM Core Conservative Bond Fund–Class R6 |
5,204,364 | 99.9 | ||||||||
| PGIM TIPS Fund–Class R6 |
9,474,258 | 100.0 | ||||||||
| PGIM Quant Solutions Commodity Strategies Fund–Class Z |
11,934 | 11.7 | ||||||||
| PGIM Quant Solutions Commodity Strategies Fund–Class R6 |
7,746,841 | 92.1 | ||||||||
| PGIM Quant Solutions Mid-Cap Core Fund–Class R6 |
1,276,168 | 100.0 | ||||||||
| PGIM Quant Solutions US Broad Market Index Fund–Class R6 |
2,390,607 | 99.0 | ||||||||
At the reporting period end, the number of shareholders holding greater than 5% of the Funds are as follows:
| Fund | Number of Shareholders | Percentage of Outstanding Shares | ||||||||
| Affiliated: |
||||||||||
| PGIM Jennison Small-Cap Core Equity Fund |
7 | 87.8 | % | |||||||
| PGIM Core Conservative Bond Fund |
6 | 88.4 | ||||||||
| PGIM TIPS Fund |
6 | 90.3 | ||||||||
| PGIM Quant Solutions Commodity Strategies Fund |
4 | 70.7 | ||||||||
| PGIM Quant Solutions Mid-Cap Core Fund |
8 | 93.2 | ||||||||
| PGIM Quant Solutions US Broad Market Index Fund |
7 | 87.9 | ||||||||
| Unaffiliated: |
||||||||||
| PGIM Jennison Small-Cap Core Equity Fund |
— | — | ||||||||
| PGIM Core Conservative Bond Fund |
— | — | ||||||||
| PGIM TIPS Fund |
— | — | ||||||||
| PGIM Quant Solutions Commodity Strategies Fund |
1 | 6.0 | ||||||||
| PGIM Quant Solutions Mid-Cap Core Fund |
— | — | ||||||||
| PGIM Quant Solutions US Broad Market Index Fund |
— | — | ||||||||
Transactions in shares of beneficial interest were as follows:
PGIM Quant Solutions Commodity Strategies Fund:
| Share Class | Shares | Amount | ||||||
| Class Z |
||||||||
| Year ended July 31, 2023: |
||||||||
| Shares sold |
1,174,476 | $ | 10,481,499 | |||||
| Shares issued in reinvestment of dividends and distributions |
217,071 | 1,647,571 | ||||||
| Shares purchased |
(1,339,998 | ) | (9,467,101 | ) | ||||
| Net increase (decrease) in shares outstanding |
51,549 | $ | 2,661,969 | |||||
187
Notes to Financial Statements/Consolidated Financial Statements
PGIM Quant Solutions Commodity Strategies Fund (cont’d.):
| Share Class | Shares | Amount | ||||||
| Period ended July 31, 2022: |
||||||||
| Shares sold |
315,164 | $ | 3,360,544 | |||||
| Shares purchased |
(264,624 | ) | (2,889,629 | ) | ||||
| Net increase (decrease) in shares outstanding |
50,540 | $ | 470,915 | |||||
| Class R6 |
||||||||
| Year ended July 31, 2023: |
||||||||
| Shares sold |
2,292,053 | $ | 18,541,419 | |||||
| Shares issued in reinvestment of dividends and distributions |
2,323,019 | 17,608,485 | ||||||
| Shares purchased |
(3,854,937 | ) | (29,825,808 | ) | ||||
| Net increase (decrease) in shares outstanding |
760,135 | $ | 6,324,096 | |||||
| Year ended July 31, 2022: |
||||||||
| Shares sold |
3,295,509 | $ | 35,389,171 | |||||
| Shares issued in reinvestment of dividends and distributions |
2,474,984 | 19,775,119 | ||||||
| Shares purchased |
(3,253,556 | ) | (33,613,290 | ) | ||||
| Net increase (decrease) in shares outstanding |
2,516,937 | $ | 21,551,000 | |||||
| 8. | Borrowings |
The RIC, on behalf of the Funds, along with other affiliated registered investment companies (the “Participating Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with a group of banks. The purpose of the SCA is to provide an alternative source of temporary funding for capital share redemptions. The table below provides details of the current SCA in effect at the reporting period-end as well as the prior SCA.
| Current SCA | Prior SCA | |||
| Term of Commitment |
9/30/2022 - 9/28/2023 | 10/1/2021 - 9/29/2022 | ||
| Total Commitment |
$ 1,200,000,000 | $ 1,200,000,000 | ||
| Annualized Commitment Fee on the Unused Portion of the SCA |
0.15% | 0.15% | ||
| Annualized Interest Rate on Borrowings | 1.00% plus the higher of (1) the effective federal funds rate, (2) the daily SOFR rate plus 0.10% or (3) zero percent |
1.20% 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 predetermined mathematical formula used to manage certain benefit guarantees offered under variable annuity contracts. The formula may result in large scale asset flows into and out of these portfolios. Consequently, these portfolios may be more
188
likely to utilize the SCA for purposes of funding redemptions. It may be possible for those portfolios to fully exhaust the committed amount of the SCA, thereby requiring the Manager to allocate available funding per a Board-approved methodology designed to treat the Participating Funds in the SCA equitably.
The Funds utilized the SCA during the year ended July 31, 2023. The average balance outstanding is for the number of days the Funds utilized the credit facility.
| Fund | Average Balance Outstanding |
Weighted Average Interest Rates |
Number of Days Outstanding |
Maximum Balance Outstanding |
Balance Outstanding at July 31, 2023 | ||||||||||||||||||||
| PGIM TIPS Fund |
$ | 912,900 | 5.62 | % | 10 | $ | 2,146,000 | $ | — | ||||||||||||||||
| PGIM Quant Solutions Mid-Cap Core Fund |
321,143 | 4.82 | 21 | 1,574,000 | — | ||||||||||||||||||||
| PGIM Quant Solutions US Broad Market Index Fund |
2,544,000 | 5.41 | 1 | 2,544,000 | — | ||||||||||||||||||||
| 9. | Purchases & Redemption In-kind |
As of the close of business on July 20, 2023, PGIM Jennison Small-Cap Core Equity Fund settled the redemption of fund Class R6 shares by delivering to an affiliate portfolio securities and other assets. The value of such securities and other assets that were transferred in-kind was $19,081,561.
In-kind redemption gains and losses are excluded in the calculation of taxable gain (loss) for federal income tax purposes.
| 10. | Risks of Investing in the Funds |
Each Fund’s risks include, but are not limited to, some or all of the risks discussed below. For further information on the risks applicable to any given Fund, please refer to the Prospectus and Statement of Additional Information of that Fund.
| Risks | PGIM Jennison Small-Cap Core Equity Fund |
PGIM Core Conservative Bond Fund |
PGIM TIPS Fund |
PGIM Quant |
PGIM Quant Solutions Mid-Cap Core Fund |
PGIM Quant Solutions US Broad Market Index Fund | ||||||
| Active Trading |
— | X | — | — | — | — | ||||||
| Adjustable and Floating Rate Securities |
— | — | X | — | — | — | ||||||
| Blend Style |
X | — | — | — | X | — | ||||||
| Cayman Subsidiary |
— | — | — | X | — | — | ||||||
| Commodity |
— | — | — | X | — | — | ||||||
| Commodity-Linked Notes |
— | — | — | X | — | — | ||||||
| Commodity Pooled Investment Vehicles |
— | — | — | X | — | — | ||||||
| Commodity Regulatory |
— | — | — | X | — | — | ||||||
| Concentration |
— | — | — | X | — | — |
189
Notes to Financial Statements/Consolidated Financial Statements
| Risks | PGIM Jennison Small-Cap Core Equity Fund |
PGIM Core Conservative Bond Fund |
PGIM TIPS Fund |
PGIM Quant |
PGIM Quant Solutions Mid-Cap Core Fund |
PGIM Quant Solutions US Broad Market Index Fund | ||||||
| Credit /Counterparty |
— | X | X | X | — | — | ||||||
| Debt Obligations |
— | X | X | X | — | — | ||||||
| Deflation |
— | — | — | X | — | — | ||||||
| Derivatives |
— | X | X | X | X | X | ||||||
| Economic and Market Events |
X | X | X | X | X | X | ||||||
| Equity and Equity-Related Securities |
X | — | — | — | X | X | ||||||
| Exchange-Traded Funds (“ETFs”) |
— | — | — | — | X | X | ||||||
| Foreign Securities |
— | X | X | — | — | — | ||||||
| Fund of Funds |
X | X | X | X | X | X | ||||||
| Futures and Forward Contracts |
— | — | — | X | — | — | ||||||
| Hedging |
— | — | — | X | — | — | ||||||
| Increase in Expenses |
X | X | X | X | X | X | ||||||
| Index Investment Approach |
— | — | — | — | — | X | ||||||
| Initial Public Offerings |
X | — | — | — | — | — | ||||||
| Interest Rate |
— | X | X | X | — | — | ||||||
| Large Capitalization Company |
— | — | — | — | — | X | ||||||
| Large Shareholder and Large Scale Redemption |
X | X | X | X | X | X | ||||||
| Liquidity |
— | — | — | X | — | — | ||||||
| Management |
X | — | — | X | X | — | ||||||
| Market Disruption and Geopolitical |
X | X | X | X | X | X | ||||||
| Market |
X | X | X | X | X | X | ||||||
| Medium Capitalization (Mid-Cap) Company |
— | — | — | — | X | — | ||||||
| Model Design |
— | — | — | — | X | — | ||||||
| Model Implementation |
— | — | — | — | X | — | ||||||
| Mortgage-Backed and Asset-Backed Securities |
— | X | X | — | — | — | ||||||
| Non-Diversified Investment Company |
— | — | — | X | — | — | ||||||
| Preferred Securities |
— | — | — | — | X | — | ||||||
| Reference Rate |
— | — | X | — | — | — | ||||||
| Small and Medium Capitalization |
— | — | — | — | — | X | ||||||
| Small Company |
X | — | — | — | — | — | ||||||
| Tax |
— | — | — | X | — | — | ||||||
| TIPS |
— | — | X | — | — | — |
190
| Risks | PGIM Jennison Small-Cap Core Equity Fund |
PGIM Core Conservative Bond Fund |
PGIM TIPS Fund |
PGIM Quant |
PGIM Quant Solutions Mid-Cap Core Fund |
PGIM Quant Solutions US Broad Market Index Fund | ||||||
| Tracking Error |
— | — | — | — | — | X | ||||||
| Trading on Foreign Exchanges |
— | — | — | X | — | — | ||||||
| U.S. Government and Agency Securities |
— | X | X | X | — | — | ||||||
| U.S. Treasury Strips |
— | — | X | X | — | — | ||||||
| Zero Coupon Bond |
— | X | — | — | — | — |
Active Trading Risk: The Fund actively and frequently trades its portfolio securities. High portfolio turnover involves correspondingly greater brokerage commissions and other transaction costs, which are borne directly by the Fund; 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 to shareholders will be taxed as ordinary income rather than long-term capital gains compared to investment companies with lower portfolio turnover.
Adjustable and Floating Rate Securities Risk: The value of adjustable and floating rate securities may lag behind the value of fixed rate securities when interest rates change. Such securities may be subject to extended settlement periods (longer than seven days) and in unusual market conditions, with a high volume of shareholder redemptions, may present a risk of loss to the Fund or may impair the Fund’s ability satisfy shareholder redemption requests.
Blend Style Risk: The Fund’s blend investment style may subject the Fund to risks of both value and growth investing. The portion of the Fund’s portfolio that makes investments pursuant to a growth strategy may be subject to above-average fluctuations as a result of seeking higher than average capital growth. The portion of the Fund’s portfolio that makes investments pursuant to a value strategy may be subject to the risk that the market may not recognize a security’s intrinsic value for long periods of time or at all, or that a stock judged to be undervalued may actually be appropriately priced or overvalued. Issuers of value stocks may have experienced adverse business developments or may be subject to special risks that have caused the stock to be out of favor. If the Fund’s assessment of market conditions or a company’s value is inaccurate, the Fund could suffer losses or produce poor performance relative to other funds. Historically, growth stocks have performed best during later stages of economic expansion and value stocks have performed best during periods of economic recovery. Therefore, both styles may over time go in and out of favor with the markets. At times when a style is out of favor, that portion of the portfolio may lag the other portion of the portfolio, which may cause the Fund to underperform the market in general, its benchmark and other mutual funds. Growth and value stocks have historically produced similar long-term results, though each category has periods when it outperforms the other.
191
Notes to Financial Statements/Consolidated Financial Statements
Cayman Subsidiary Risk: By investing in the Cayman Subsidiary, the Fund is indirectly exposed to the risks associated with the Cayman Subsidiary’s investments. The Cayman Subsidiary is not registered as an investment company under the 1940 Act, and, unless otherwise noted in this Prospectus, is not subject to all the investor protections of the 1940 Act. Changes in the laws of the Cayman Islands, under which the Cayman Subsidiary is incorporated, could result in the inability of the Fund to effect its desired commodity investment strategy.
Commodity Risk: The values of commodities are affected by events that might have less impact on the value of stocks and bonds. Such investments may be speculative. Prices of commodities and related contracts may fluctuate significantly over short periods for a variety of reasons, including weather, crop or livestock disease, investment speculation, resource availability, fluctuations in industrial and commercial supply and demand, U.S. agricultural, fiscal, monetary and exchange control programs, embargoes, tariffs, and international political, economic, military and regulatory developments. These risks may subject the Fund to greater volatility than investments in traditional instruments or securities.
Commodity-Linked Notes Risk: The Fund may invest in leveraged or unleveraged commodity-linked notes (“CLNs”) to gain exposure to the commodities markets. CLNs are subject to counterparty risk. The value of the CLNs may fluctuate significantly because the values of the investments to which they are linked are volatile. In addition, the terms of a CLN may create economic leverage by requiring payment by the issuer of an amount that is a multiple of the price increase or decrease of the underlying commodity, commodity index or other economic variable. Economic leverage increases the volatility of CLNs and their value may increase or decrease more quickly than the value of the underlying commodity, commodity index or other economic variable.
Commodity Pooled Investment Vehicles Risk: The Fund may, from time to time, invest in certain publicly-traded commodity pools, such as commodity ETFs. Such pools may not meet the definition of an “investment company” under the 1940 Act, and may not be registered under the 1940 Act. As a consequence, the Fund’s investment in such entities may not be subject to certain protections afforded by the 1940 Act, including, for example, restrictions under the 1940 Act on investments in other investment companies. ETFs that invest in commodities may be, or may become subject to, CFTC trading regulations that limit the amount of commodity contracts an ETF may hold. Such regulations could hurt the value of such ETFs’ securities. Additionally, some commodity ETFs invest in commodity futures which can lose money even when commodity prices are rising.
Commodity Regulatory Risk: The Fund and the Cayman Subsidiary is deemed a “commodity pool” and the Manager is considered a “commodity pool operator” with respect to the Fund and the Cayman Subsidiary under the Commodity Exchange Act. The Manager,
192
directly or through its affiliates, is therefore subject to dual regulation by the Securities and Exchange Commission (the SEC) and the CFTC. The regulatory requirements governing the use of commodity futures (which include futures on broad-based securities indexes, interest rate futures and currency futures), options on commodity futures, certain swaps or certain other investments could change at any time.
Concentration Risk: The Fund will be exposed to the performance of commodities in the Index, which may from time to time have a small number of commodity sectors (e.g., energy, metals or agricultural) representing a large portion of the Index. As a result, the Fund may be subject to greater volatility than if the Index were more broadly diversified among commodity sectors.
Credit Risk/Counterparty Risk: The ability, or perceived ability, of the issuer or guarantor of 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 and credit 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 such transactions. 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 the Fund 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 are not 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 assets allocated 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.
Debt Obligations 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 may decline for issuer-related reasons, including management performance, financial leverage and reduced demand for the issuer’s goods and services. Certain types of fixed income obligations also may be subject to “call and redemption risk,” which is the risk that the issuer may call a bond held by the Fund for redemption before it matures and the Fund may not be able to reinvest at the same rate of interest and therefore would earn less income.
Deflation Risk: Since the Fund makes investments that may perform well in periods of rising inflation, during periods of no inflation or deflation an investment in the Fund may underperform broad market measures and may lose value.
193
Notes to Financial Statements/Consolidated Financial Statements
Derivatives Risk: Derivatives Risk: Derivatives involve special risks and costs and may result in losses to the Fund. The successful use of derivatives requires sophisticated management, and, to the extent that derivatives are used, the Fund will depend on the subadviser’s ability to analyze and manage derivatives transactions. The prices of derivatives may move in unexpected ways, especially in abnormal market conditions. Some derivatives are “leveraged” or may create economic leverage for the Fund and therefore may magnify or otherwise increase investment losses to the Fund. The Fund’s use of derivatives may also increase the amount of taxes payable by shareholders.
Other risks arise from the potential inability to terminate or sell derivatives positions. A liquid secondary market may not always exist for the Fund’s derivatives positions. In fact, many over-the-counter derivative instruments will not have liquidity beyond the counterparty to the instrument. Over-the-counter derivative instruments also involve the risk that the other party will not meet its obligations to the Fund. The use of derivatives also exposes the Fund to operational issues, such as documentation and settlement issues, systems failures, inadequate control and human error.
Derivatives may also involve legal risks, such as insufficient documentation, the lack of capacity or authority of a counterparty to execute or settle a transaction, and the legality and enforceability of derivatives contracts. The U.S. Government and foreign governments have adopted (and may adopt further) regulations governing derivatives markets, including mandatory clearing of certain derivatives, margin and reporting requirements, and risk exposure limitations. Regulation of derivatives may make derivatives more costly, limit their availability or utility to the Fund, or otherwise adversely affect their performance or disrupt markets.
Economic and Market Events Risk: Events in the U.S. and global financial markets, including actions taken by the U.S. Federal Reserve or foreign central banks to stimulate or stabilize economic growth or the functioning of the securities markets, or otherwise reduce inflation, may at times result in unusually high market volatility, which could negatively impact performance. Governmental efforts to curb inflation often have negative effects on the level of economic activity. Relatively reduced liquidity in credit and fixed income markets could adversely affect issuers worldwide.
Equity and Equity-Related Securities Risk: Equity and equity-related securities may be subject to changes in value, and their values may be more volatile than those of other asset classes. In addition to an individual security losing value, the value of the equity markets or a sector in which the Fund invests could go down. Different parts of a market can react differently to adverse issuer, market, regulatory, political and economic developments.
194
Exchange-Traded Funds (“ETFs”) Risk: Investing in securities issued by ETFs involves risks similar to those of investing directly in the securities and other assets held by the ETF. Unlike shares of typical mutual funds, shares of ETFs are generally traded on an exchange throughout a trading day and bought and sold based on market values and not at net asset value. For this reason, shares could trade at either a premium or discount to net asset value, which may be substantial during periods of market stress. The trading price of an index-based ETF is expected to (but may not) closely track the net asset value of the ETF, and the Fund will generally gain or lose value consistent with the performance of the ETF’s portfolio securities. The Fund will pay brokerage commissions in connection with the purchase and sale of shares of ETFs. In addition, the Fund will indirectly bear its pro rata share of the fees and expenses incurred by an ETF (including ETFs managed by the Manager or the subadviser(s)) in which they invest, including advisory fees (to the extent not offset by the Manager through waivers). These expenses are in addition to the advisory and other expenses that the Fund bears directly in connection with its own operations. An index-based ETF may not replicate exactly the performance of the benchmark index it seeks to track for a number of reasons, including transaction costs incurred by the ETF, the temporary unavailability of certain index securities in the secondary market or discrepancies between the ETF and the index with respect to the weighting of securities or the number of securities held. Investments in ETFs are subject to the risk that the listing exchange may halt trading of an ETF’s shares, in which case the Fund would be unable to sell its ETF shares unless and until trading is resumed.
Foreign Securities Risk: Investments in securities of non-U.S. issuers (including those denominated in U.S. dollars) may involve more risk than investing in securities of U.S. issuers. Foreign political, economic and legal systems, especially those in developing and emerging market countries, may be less stable and more volatile than in the United States. Foreign legal systems generally have fewer regulatory requirements than the U.S. legal system, particularly those of emerging markets. In general, less information is publicly available with respect to non-U.S. companies than U.S. companies. Non-U.S. companies generally are not subject to the same accounting, auditing, and financial reporting standards as are U.S. companies. Additionally, the changing value of foreign currencies and changes in exchange rates could also affect the value of the assets the Fund holds and the Fund’s performance. Certain foreign countries may impose restrictions on the ability of issuers of foreign securities to make payment of principal and interest or dividends to investors located outside the country, due to blockage of foreign currency exchanges or otherwise. Investments in emerging markets are subject to greater volatility and price declines.
In addition, the Fund’s investments in non-U.S. securities may be subject to the risks of nationalization or expropriation of assets, imposition of currency exchange controls or restrictions on the repatriation of non-U.S. currency, confiscatory taxation and adverse diplomatic developments. Special U.S. tax considerations may apply.
Fund of Funds Risk: The Fund is an investment option for other PGIM Investments-advised mutual funds that are managed as “funds of funds.” As a result, from time to time, the Fund may experience relatively large redemptions and could be required to liquidate its assets at
195
Notes to Financial Statements/Consolidated Financial Statements
inopportune times or at a loss or depressed value, which could cause the value of your investment to decline.
Futures and Forward Contracts Risk: The primary risks associated with the use of futures or forward contracts are (a) the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the corresponding underlying commodities; (b) possible lack of a liquid secondary market for a futures or forward contract and the resulting inability to close a futures 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 commodities prices, interest rates, currency exchange rates, supply and demand relationships, weather, agricultural, trade, fiscal, monetary and exchange control programs, political events, and other economic factors; and (e) the possibility that the clearing broker for the futures or forward contract will default in the performance of its obligations.
Hedging Risk: The decision as to whether and to what extent the Fund will engage in hedging transactions to hedge against certain risks, such as market risk and issuer risk, will depend on a number of factors, including prevailing market conditions, the composition of the portfolio of the Fund, and the availability of suitable transactions. Hedging transactions involve costs and may result in losses. There is no guarantee that any of these hedging instruments would work as anticipated, and in certain cases the Fund might be better off had it not used a hedging instrument. There can be no assurance that the Fund will engage in hedging transactions at any given time or from time to time, even under volatile market environments, or that any such strategies, if used, will be successful.
Increase in Expenses Risk: Your actual cost of investing in the Fund may be higher than the expenses shown in the expense table in the Fund’s prospectus for a variety of reasons. For example, expense ratios may be higher than those shown if average net assets decrease. Net assets are more likely to decrease and Fund expense ratios are more likely to increase when markets are volatile. Active and frequent trading of Fund securities can increase expenses.
Index Investment Approach Risk: Since the Fund is passively managed, assets are not allocated from one stock or group of stocks to another based on their prospects, or from stocks into bonds or cash equivalents in an attempt to cushion the impact of a market decline. As a result, the Fund’s performance may be less favorable than that of a portfolio using an active investment strategy. There is no guarantee that the Fund’s investment results will have a high degree of correlation to those of the Index. The Fund’s expenses, changes in securities markets, changes in the composition of the Index, errors in index provider data, and the timing of purchases and redemptions of Fund shares, among other things, may affect the correlation between Fund and Index performance. The Fund may not
196
perform as well as other investments if, among other things, the Index declines or performs poorly relative to other related indexes or individual securities or the securities issued by companies that comprise the Index fall out of favor with investors.
Initial Public Offerings Risk: The volume of IPOs and the levels at which the newly issued stocks trade in the secondary market are affected by the performance of the stock market overall. If IPOs are brought to the market, availability may be limited and if the Fund desires to acquire shares in such an offering, it may not be able to buy any shares at the offering price, or if it is able to buy shares, it may not be able to buy as many shares at the offering price as it would like. The prices of securities involved in IPOs are often subject to greater and more unpredictable price changes than more established stocks. Such unpredictability can have a dramatic impact on the Fund’s performance (higher or lower) and any assumptions by investors based on the affected performance may be unwarranted. In addition, as Fund assets grow, the impact of IPO investments on performance will decline, which could reduce total returns.
Interest Rate Risk: The value of your investment may go down when interest rates rise. A rise in rates tends to have a greater impact on the prices of longer term or duration debt securities. Similarly, a rise in interest rates may also have a greater negative impact on the value of equity securities whose issuers expect earnings further out in the future. For example, a fixed income security with a duration of three years is expected to decrease in value by approximately 3% if interest rates increase by 1%. This is referred to as “duration risk.” When interest rates fall, the issuers of debt obligations may prepay principal more quickly than expected, and the Fund may be required to reinvest the proceeds at a lower interest rate. This is referred to as “prepayment risk.” When interest rates rise, debt obligations may be repaid more slowly than expected, and the value of the Fund’s holdings may fall sharply. This is referred to as “extension risk.” The Fund may lose money if short-term or long-term interest rates rise sharply or in a manner not anticipated by the subadviser.
Large Capitalization Company Risk: Companies with large market capitalizations go in and out of favor based on market and economic conditions. Larger companies tend to be less volatile than companies with smaller market capitalizations. In exchange for this potentially lower risk, the Fund’s value may not rise or fall as much as the value of funds that emphasize companies with smaller market capitalizations.
Large Shareholder and Large Scale Redemption Risk: Certain individuals, accounts, funds (including funds affiliated with the Manager) or institutions, including the Manager and its affiliates, may from time to time own or control a substantial amount of the Fund’s shares. There is no requirement that these entities maintain their investment in the Fund. There is a risk that such large shareholders or that the Fund’s shareholders generally may redeem all or a substantial portion of their investments in the Fund in a short period of time, which could have a significant negative impact on the Fund’s NAV, liquidity, and brokerage costs. Large redemptions could also result in tax consequences to shareholders and impact the Fund’s ability to implement its investment strategy. The Fund’s ability to pursue its
197
Notes to Financial Statements/Consolidated Financial Statements
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.
Liquidity Risk: 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 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 time or 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 other investment opportunities.
Management Risk: Actively managed funds are subject to management risk. The subadvisers will apply investment techniques and risk analyses in making investment decisions for the Fund, but the subadvisers’ judgements about the attractiveness, value or market trends affecting a particular security, industry or sector or about market movementss may be incorrect. Additionally, the investments selected for the Fund by the subadviser may underperform the markets in general, the Fund’s benchmark and other funds with similar investment objectives.
Market Disruption and Geopolitical Risks: Market disruption can be caused by economic, financial or political events and factors, including but not limited to, international wars or conflicts (including Russia’s military invasion of Ukraine), geopolitical developments (including trading and tariff arrangements, sanctions and cybersecurity attacks), instability in regions such as Asia, Eastern Europe and the Middle East, terrorism, natural disasters and public health epidemics (including the outbreak of COVID-19 globally).
The extent and duration of such events and resulting market disruptions cannot be predicted, but could be substantial and could magnify the impact of other risks to the Fund. These and other similar events could adversely affect the U.S. and foreign financial markets and lead to increased market volatility, reduced liquidity in the securities markets, significant negative impacts on issuers and the markets for certain securities and commodities and/or government intervention. They may also cause short- or long-term economic uncertainties in the United States and worldwide. As a result, whether or not the Fund invests in securities of issuers located in or with significant exposure to the countries directly affected, the value and liquidity of the Fund’s investments may be negatively impacted. Further, due to closures of certain markets and restrictions on trading certain securities, the value of certain securities held by the Fund could be significantly impacted, which could lead to such securities being valued at zero.
COVID-19 and the related governmental and public responses have had and future public health epidemics may have an impact on the Fund’s investments and net asset value and
198
have led and may lead to increased market volatility and the potential for illiquidity in certain classes of securities and sectors of the market. Future public health epidemics may 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 pendency of public health epidemics could adversely affect the economies and financial markets either in specific countries or worldwide.
Market Risk: Securities markets may be volatile and the market prices of the Fund’s securities may decline. Securities fluctuate in price based on changes in an issuer’s financial condition and overall market and economic conditions. If the market prices of the securities owned by the Fund fall, the value of your investment in the Fund will decline.
Medium Capitalization (Mid-Cap) Company Risk: The Fund’s investments in mid-cap companies carry more risk than investments in larger capitalized companies. Investments in mid-cap companies carry additional risks because earnings of these companies tend to be less predictable; they often have limited product lines, markets, distribution channels or financial resources; and the management of such companies may be dependent on one or a few key people. The market movements of these companies’ securities may be more abrupt or erratic than the market movements of securities of larger, more established companies or the stock market in general. Historically, mid-cap companies have sometimes gone through extended periods when they did not perform as well as larger companies. Mid-cap companies generally are comparatively less liquid than larger companies, which may make such investments more difficult to sell at the time and price that the Fund would like. Also, the stocks of mid-cap companies may fall out of favor relative to those of small- or large-capitalization companies, causing the Fund to underperform other equity funds that focus on small- or large-capitalization companies.
Model Design Risk: The subadviser uses certain quantitative models to help guide its investment decisions. The design of the underlying models may be flawed or incomplete. The investment models the subadviser uses are based on historical and theoretical underpinnings that it believes are sound. There can be no guarantee, however, that these underpinnings will correlate with security price behavior in the manner assumed by the subadviser’s models. Additionally, the quantitative techniques that underlie the subadviser’s portfolio construction processes may fail to fully anticipate important risks.
Model Implementation Risk: While the subadviser strives to mitigate the likelihood of material implementation errors, it is impossible to completely eliminate the risk of error in the implementation of the computer models that guide the subadviser’s quantitative investment processes. Additionally, it may be difficult to implement model recommendations in volatile and rapidly changing market conditions.
Mortgage-Backed and Asset-Backed Securities Risk: Mortgage-backed and asset-backed securities tend to increase in value less than other debt securities when interest rates decline, but are subject to similar risk of decline in market value during periods of rising
199
Notes to Financial Statements/Consolidated Financial Statements
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: Funds that are “non-diversified” for purposes of the 1940 Act, may invest a greater percentage of their assets in securities of a single issuer. Accordingly, a non-diversified fund may be more susceptible to risks associated with a single economic, political or regulatory event than a diversified fund might be.
Preferred Securities Risk: Preferred stock can experience sharp declines in value over short or extended periods of time, regardless of the success or failure of a company’s operations. As with call provisions, a redemption by the issuer may negatively impact the return of the security held by the Fund. Preferred stockholders’ liquidation rights are subordinate to the company’s debt holders and creditors. If interest rates rise, the fixed dividend on preferred stocks may be less attractive and the price of preferred stocks may decline. Preferred stock usually does not require the issuer to pay dividends and may permit the issuer to defer dividend payments. Preferred securities also may be substantially less liquid than many other securities, such as common stock or U.S. Government securities.
Reference Rate Risk: The Fund may be exposed to financial instruments that recently transitioned from using or continue to use the London Interbank Offered Rate (“LIBOR”) to determine payment obligations, financing terms, hedging strategies or investment value.
The United Kingdom’s Financial Conduct Authority (the “FCA”) announced a phase out of LIBOR such that after June 30, 2023, the overnight, 1-month, 3-month, 6-month and 12-month U.S. dollar LIBOR settings ceased to be published or are no longer representative. All other LIBOR settings and certain other interbank offered rates, such as the Euro Overnight Index Average (“EONIA”), ceased to be published after December 31, 2021. On December 16, 2022 the Federal Reserve Board adopted regulations implementing the Adjustable Interest Rate Act by identifying benchmark rates based on the Secured Overnight Financing Rate that replaced LIBOR in different categories of financial contracts after June 30, 2023. These regulations apply only to contracts governed by U.S. law, among other limitations. The FCA will permit the use of synthetic U.S. dollar LIBOR rates for non-U.S. contracts through September 30, 2024, but any such rates would be considered non-representative of the underlying market.
Neither the effect of the LIBOR transition process nor its ultimate success can yet be known. Not all existing LIBOR-based instruments may have alternative rate-setting provisions and there remains uncertainty regarding the willingness and ability of issuers to add alternative rate-setting provisions in certain existing instruments. Parties to contracts, securities or other
200
instruments using LIBOR may disagree on transition rates or the application of applicable transition regulation potentially resulting in uncertainty of performance and the possibility of litigation. The Fund may have instruments linked to other Interbank offered rates that may also cease to be published in the future.
Small and Medium Capitalization Risk: Small and medium capitalization companies usually offer a smaller range of products and services than larger companies. Smaller companies may also have limited financial resources and may lack management expertise. As a result, their prices may fluctuate more than the stocks of larger, more established companies. Historically, small and mid-cap companies have sometimes gone through extended periods when they did not perform as well as larger companies. Small and mid-capitalization companies generally are less liquid than larger companies, which may make such investments more difficult to sell at the time and price that the Fund would like.
Small Company Risk: Small company stocks present above-average risks in comparison to larger companies. Small companies usually offer a smaller range of products and services than larger companies. Smaller companies may also have limited financial resources and may lack management expertise. As a result, stocks issued by smaller companies may be comparatively less liquid and fluctuate in value more than the stocks of larger, more established companies.
Tax Risk: To receive pass-through tax treatment as a Registered Investment Company under the Code, the Fund must, among other things, derive at least 90% of its gross income for each taxable year from sources treated under the Code as “qualifying income.” Based on final regulations on which taxpayers may rely for taxable years beginning after September 28, 2016, the Fund anticipates treating the income generated from investments in the Cayman Subsidiary as “qualifying income.” However, the tax treatment of income from commodity-related investments and the Fund’s income from the Cayman Subsidiary may be adversely affected by future legislation, U.S. Treasury Regulations, and/or guidance issued by the Internal Revenue Service that could affect the character, timing, and/or amount of the Fund’s taxable income or capital gains and distributions it makes.
TIPS Risk: Inflation-indexed bonds, such as TIPS, generally decline in value when real interest rates rise. Real interest rates represent the nominal (stated) interest rates reduced by the expected impact of inflation. In certain interest rate environments, such as when real interest rates are rising faster than nominal interest rates, TIPS may experience greater losses than other fixed income securities with similar durations. In addition, any increase in principal value of an inflation-indexed bond caused by an increase in the price index is taxable in the year the increase occurs, even though the Fund generally will not receive cash representing the increase at that time. As a result, the Fund could be required at times to liquidate other investments, including when it is not advantageous to do so, in order to satisfy its distribution requirements as a regulated investment company under the Internal Revenue Code (the Code). Also, to the extent that the Fund invests in inflation-indexed bonds, income distributions are more likely to fluctuate.
201
Notes to Financial Statements/Consolidated Financial Statements
The Fund’s income may decline due to a decline in inflation, also known as deflation. If there is deflation, the principal value of an inflation-linked security will be adjusted downward, and consequently the interest payments (calculated with respect to a smaller principal amount) will be reduced. The principal value can decrease, but not below 100. If inflation is lower than expected during the period the Fund holds an inflation-linked security, the Fund may earn less on the security than on a conventional bond.
Tracking Error Risk: Tracking error is the divergence of the Fund’s performance from that of the Index. Tracking error may occur because of differences between the securities and other instruments held in the Fund’s portfolio and those included in the Index, pricing differences, transaction costs, the Fund’s holding of uninvested cash, differences in timing of the accrual of distributions, tax gains or losses, changes to the Index or the need to meet various new or existing regulatory requirements. This risk may be heightened during times of increased market volatility or other unusual market conditions. Tracking error also may result because the Fund incurs fees and expenses, while the Index does not.
Trading on Foreign Exchanges Risk: The Fund is expected to trade in commodity forward contracts listed on UK futures exchanges and may, but is not expected to, trade in instruments listed on other exchanges located outside the United States. Some foreign exchanges may be principal markets so that no common clearing facility exists and a trader may look only to the broker for performance of the contract. Trading on U.S. futures exchanges is subject to regulation by the SEC and the CFTC and oversight, as applicable, including, for example, minimum capital requirements for commodity brokers, regulation of trading practices on the exchanges, prohibitions against trading ahead of customer orders, prohibitions against filling orders off exchanges, prescribed risk disclosure statements, testing and licensing of industry sales personnel and other industry professionals, and recordkeeping requirements. Trading on foreign exchanges is not regulated by the SEC, CFTC or any other U.S. governmental agency or instrumentality and may be subject to regulations that are different from those to which U.S. exchange trading is subject, provide less protection to investors than trading on U.S. exchanges, and such regulations may be less vigorously enforced than regulations in the U.S. positions on foreign exchanges also are subject to the risk of exchange controls, expropriation, excessive taxation or government disruptions.
U.S. Government and Agency Securities Risk: U.S. Treasury obligations are backed by the “full faith and credit” of the U.S. Government. Securities issued or guaranteed by federal agencies or authorities and U.S. Government-sponsored instrumentalities or enterprises may or may not be backed by the full faith and credit of the U.S. Government. For example, securities issued by the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association and the Federal Home Loan Banks are neither insured nor guaranteed by the U.S. Government. These securities may be supported by the ability to
202
borrow from the U.S. Treasury or only by the credit of the issuing agency, authority, instrumentality or enterprise and, as a result, are subject to greater credit risk than securities issued or guaranteed by the U.S. Treasury. Further, the U.S. Government and its agencies, authorities, instrumentalities and enterprises do not guarantee the market value of their securities; consequently, the value of such securities will fluctuate. This may be the case especially when there is any controversy or ongoing uncertainty regarding the status of negotiations in the U.S. Congress to increase the statutory debt ceiling. Such controversy or uncertainty could, among other things, result in the credit quality rating of the U.S. Government being downgraded and reduced prices of U.S. Treasury securities. If the U.S. Congress is unable to negotiate an adjustment to the statutory debt ceiling, there is also the risk that the U.S. Government may default on payments on certain U.S. Government securities, including those held by the Fund, which could have a negative impact on the Fund. An increase in demand for U.S. Government securities resulting from an increase in demand for government money market funds may lead to lower yields on such securities.
U.S. Treasury Strips Risk: Stripped securities do not make periodic interest payments. The value of stripped securities generally fluctuates more in response to interest rate movements than the value of traditional bonds with similar maturity and credit quality. U.S. Treasury strips generally lose value when interest rates rise.
Zero Coupon Bond Risk: Zero coupon bonds may experience greater volatility in market value due to changes in interest rates. The Fund accrues income on the discount amortization of these investments, which it is required to distribute each year. The Fund may be required to sell investments to obtain cash needed for income distributions.
| 11. | Recent Regulatory Developments |
Effective January 24, 2023, the SEC adopted rule and form amendments to require mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information deemed important for retail investors to assess and monitor their fund investments (the “Rule”). Other information, including financial statements, will no longer appear in the funds’ streamlined shareholder reports but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The Rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the Rule and its impact to the Funds.
203
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Prudential Investment Portfolios 2 and Shareholders of PGIM Core Conservative Bond Fund, PGIM Jennison Small-Cap Core Equity Fund, PGIM Quant Solutions Commodity Strategies Fund, PGIM Quant Solutions Mid-Cap Core Fund, PGIM Quant Solutions US Broad Market Index Fund and PGIM TIPS Fund
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of each of the funds indicated in the table below (six of the funds constituting Prudential Investment Portfolios 2, hereafter collectively referred to as the “Funds”) as of July 31, 2023, the related statements of operations and of changes in net assets for each of the periods indicated in the table below, including the related notes, and the financial highlights for each of the periods indicated in the table below (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of July 31, 2023, the results of each of their operations and changes in each of their net assets, and each of the financial highlights for each of the periods indicated in the table below in conformity with accounting principles generally accepted in the United States of America.
| Fund |
Statements | |
| PGIM Core Conservative Bond Fund, PGIM Jennison Small-Cap Core Equity Fund, PGIM Quant Solutions Mid-Cap Core Fund, PGIM Quant Solutions US Broad Index Fund, PGIM TIPS Fund | Statement of assets and liabilities, including the schedule of investments as of July 31, 2023, the related statement of operations for the year ended July 31, 2023, the statements of changes in net assets for each of the two years in the period ended July 31, 2023 and the financial highlights for each of the three years in the period ended July 31, 2023 | |
| PGIM Quant Solutions Commodity Strategies Fund | Consolidated statement of assets and liabilities, including the consolidated schedule of investments as of July 31, 2023, the related consolidated statement of operations for the year ended July 31, 2023, the consolidated statements of changes in net assets for each of the two years in the period ended July 31, 2023 and the financial highlights for each of the periods indicated therein | |
The financial statements of the Funds as of and for the year ended July 31, 2020 and the financial highlights for each of the periods ended on or prior to July 31, 2020 (not presented herein, other than the financial highlights) were audited by other auditors whose report dated September 18, 2020 expressed an unqualified opinion on those financial statements and financial highlights.
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our
204
audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of July 31, 2023 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/ PricewaterhouseCoopers LLP
New York, New York
September 19, 2023
We have served as the auditor of one or more investment companies in the PGIM Retail Funds complex since 2020.
205
Tax Information (unaudited)
We are advising you that during the fiscal year ended July 31, 2023, the Funds reported the maximum amount allowed per share for Class R6 share as a capital gain distribution in accordance with Section 852(b)(3)(C) of the Internal Revenue Code.
| Capital Gain Distributions | |||||
| PGIM Jennison Small-Cap Core Equity Fund |
$ | — | |||
| PGIM Core Conservative Bond Fund |
— | ||||
| PGIM TIPS Fund |
— | ||||
| PGIM Quant Solutions Commodity Strategies Fund |
— | ||||
| PGIM Quant Solutions Mid-Cap Core Equity Fund |
1.55 | ||||
| PGIM Quant Solutions US Broad Market Index Fund |
1.17 | ||||
For the year ended July 31, 2023, the following Funds reports the maximum amount allowable but not less than the following percentages of ordinary income dividends paid as: 1) qualified dividend income in accordance with Section 854 of the Internal Revenue Code (QDI); 2) eligible for the corporate dividends received deduction in accordance with Section 854 of the Internal Revenue Code (DRD); 3) interest-related dividends in accordance with Section 871(k)(1) and 881(e)(1) of the Internal Revenue Code (IRD); and 4) interest dividends that are eligible to be treated as interest income in accordance with Section 163(j):
| QDI | DRD | IRD | 163(j) | |||||||||||||
| PGIM Jennison Small-Cap Core Equity Fund |
100.00% | 100.00% | 0.00% | 0.00% | ||||||||||||
| PGIM Core Conservative Bond Fund |
0.00 | 0.00 | 88.02 | 0.00 | ||||||||||||
| PGIM TIPS Fund |
0.00 | 0.00 | 95.01 | 100.00 | ||||||||||||
| PGIM Quant Solutions Commodity Strategies Fund |
0.00 | 0.00 | 4.43 | 34.93 | ||||||||||||
| PGIM Quant Solutions Mid-Cap Core Equity Fund |
0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||
| PGIM Quant Solutions US Broad Market Index Fund |
76.18 | 74.40 | 0.00 | 0.00 | ||||||||||||
In January 2024, you will be advised on IRS Form 1099-DIV or substitute 1099-DIV as to the federal tax status of the distributions received by you in calendar year 2023.
We are required by Massachusetts, Missouri and Oregon to inform you that dividends which have been derived from interest on federal obligations are not taxable to shareholders provided the Fund meets certain requirements mandated by the respective state’s taxing authorities. We are pleased to report that the dividends paid by the following funds qualify for such deduction.
| PGIM Core Conservative Bond Fund |
29.23% | |||
| PGIM TIPS Fund |
93.90% | |||
| PGIM Quant Solutions Commodity Strategies Fund |
2.82% |
For more detailed information regarding your state and local taxes, you should contact your tax adviser or the state/local taxing authorities.
206
Liquidity Risk Management Program (unaudited)
Consistent with Rule 22e-4 under the 1940 Act (the “Liquidity Rule”), each Fund has adopted and implemented a liquidity risk management program (the “LRMP”). Each Fund’s LRMP seeks to assess and manage each Fund’s liquidity risk, which is defined as the risk that each Fund is unable to meet investor redemption requests without significantly diluting the remaining investors’ interests in each Fund. The Board has approved PGIM Investments, each Fund’s investment manager, to serve as the administrator of each Fund’s LRMP. As part of its responsibilities as administrator, PGIM Investments has retained a third party to perform certain functions, including providing market data and liquidity classification model information.
Each Fund’s LRMP includes a number of processes designed to support the assessment and management of its liquidity risk. In particular, each Fund’s LRMP includes no less than annual assessments of factors that influence each Fund’s liquidity risk; no less than monthly classifications of each Fund’s investments into one of four liquidity classifications provided for in the Liquidity Rule; a 15% of net assets limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); establishment of a minimum percentage of each Fund’s assets to be invested in investments classified as “highly liquid” (as defined under the Liquidity Rule) if each Fund does not invest primarily in highly liquid investments; and regular reporting to the Board.
At a meeting of the Board on March 7-9, 2023, PGIM Investments provided a written report (“LRMP Report”) to the Board addressing the operation, adequacy, and effectiveness of each Fund’s LRMP, including any material changes to the LRMP for the period from January 1, 2022 through December 31, 2022 (“Reporting Period”). The LRMP Report concluded that each Fund’s LRMP was reasonably designed to assess and manage each Fund’s liquidity risk 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 each Fund’s investment strategies continue to be appropriate given each Fund’s status as an open-end fund.
There can be no assurance that the LRMP will achieve its objectives in the future. Additional information regarding risks of investing in each Fund including liquidity risks presented by each Fund’s investment portfolio, is found in each Fund’s Prospectus and Statement of Additional Information.
207
INFORMATION ABOUT BOARD MEMBERS AND OFFICERS (unaudited)
Information about Board Members and Officers of the Fund is set forth below. Board Members who are not deemed to be “interested persons” of the Fund, as defined in the 1940 Act, are referred to as “Independent Board Members.” Board Members who are deemed to be “interested persons” of the Fund are referred to as “Interested Board Members.” The Board Members are responsible for the overall supervision of the operations of the Fund and perform the various duties imposed on the directors of investment companies by the 1940 Act. The Board in turn elects the Officers, who are responsible for administering the day-to-day operations of the Fund.
|
Independent Board Members
|
||||||
| Name Year of Birth Position(s) Portfolios Overseen |
Principal Occupation(s) During Past Five Years |
Other Directorships Held During Past Five Years |
Length of Board Service | |||
| Ellen S. Alberding 1958 Board Member Portfolios Overseen: 99 |
Chief Executive Officer (“CEO”) and President, The Joyce Foundation (charitable foundation) (since 2002); formerly Vice Chair, City Colleges of Chicago (community college system) (2011-2015); formerly Trustee, National Park Foundation (charitable foundation for national park system) (2009-2018); formerly Trustee, Economic Club of Chicago (2009-2016); Trustee, Loyola University (since 2018). |
None. | Since September 2013 | |||
| Kevin J. Bannon 1952 Board Member Portfolios Overseen: 100 |
Retired; formerly Managing Director (April 2008-May 2015) and Chief Investment Officer (October 2008-November 2013) of Highmount Capital LLC (registered investment adviser); formerly Executive Vice President and Chief Investment Officer (April 1993-August 2007) of Bank of New York Company; formerly President (May 2003-May 2007) of BNY Hamilton Family of Mutual Funds. |
Director of Urstadt Biddle Properties (equity real estate investment trust) (since September 2008). | Since July 2008 | |||
|
Independent Board Members
|
||||||
| Name Year of Birth Position(s) Portfolios Overseen |
Principal Occupation(s) During Past Five Years |
Other Directorships Held During Past Five Years |
Length of Board Service | |||
| Linda W. Bynoe 1952 Board Member Portfolios Overseen: 97 |
President and Chief Executive Officer (since March 1995) and formerly Chief Operating Officer (December 1989-February 1995) of Telemat Limited LLC (formerly Telemat Ltd) (management consulting); formerly Vice President (January 1985-June 1989) at Morgan Stanley & Co. (broker-dealer). |
Trustee of Equity Residential (residential real estate) (since December 2009); Director of Northern Trust Corporation (financial services) (since April 2006); formerly Director of Anixter International, Inc. (communication products distributor) (January 2006-June 2020). | Since March 2005 | |||
| Barry H. Evans 1960 Board Member Portfolios Overseen: 100 |
Retired; formerly President (2005-2016), Global Chief Operating Officer (2014-2016), Chief Investment Officer - Global Head of Fixed Income (1998-2014), and various portfolio manager roles (1986-2006), Manulife Asset Management (asset management). |
Formerly Director, Manulife Trust Company (2011-2018); formerly Director, Manulife Asset Management Limited (2015-2017); formerly Chairman of the Board of Directors of Manulife Asset Management U.S. (2005-2016); formerly Chairman of the Board, Declaration Investment Management and Research (2008-2016). | Since September 2017 | |||
| Keith F. Hartstein 1956 Board Member & Independent Chair Portfolios Overseen: 100 |
Retired; formerly Member (November 2014-September 2022) of the Governing Council of the Independent Directors Council (IDC) (organization of independent mutual fund directors); formerly Executive Committee of the IDC Board of Governors (October 2019-December 2021); formerly President and Chief Executive Officer (2005-2012), Senior Vice President (2004-2005), Senior Vice President of Sales and Marketing (1997-2004), and various executive management positions (1990-1997), John Hancock Funds, LLC (asset management); formerly Chairman, Investment Company Institute’s Sales Force Marketing Committee (2003-2008). |
None. | Since September 2013 | |||
Visit our website at pgim.com/investments
|
Independent Board Members
|
||||||
| Name Year of Birth Position(s) Portfolios Overseen |
Principal Occupation(s) During Past Five Years |
Other Directorships Held During Past Five Years |
Length of Board Service | |||
| Laurie Simon Hodrick 1962 Board Member Portfolios Overseen: 97 |
A. Barton Hepburn Professor Emerita of Economics in the Faculty of Business, Columbia Business School (since 2018); Visiting Fellow at the Hoover Institution, Stanford University (since 2015); Sole Member, ReidCourt LLC (since 2008) (a consulting firm); formerly Visiting Professor of Law, Stanford Law School (2015-2021); formerly A. Barton Hepburn Professor of Economics in the Faculty of Business, Columbia Business School (1996-2017); formerly Managing Director, Global Head of Alternative Investment Strategies, Deutsche Bank (2006-2008). |
Independent Director, Andela (since January 2022) (global talent network); Independent Director, Roku (since December 2020) (communication services); formerly Independent Director, Synnex Corporation (2019-2021) (information technology); formerly Independent Director, Kabbage, Inc. (2018-2020) (financial services); formerly Independent Director, Corporate Capital Trust (2017-2018) (a business development company). | Since September 2017 | |||
| Brian K. Reid 1961 Board Member Portfolios Overseen: 100 |
Retired; formerly Chief Economist for the Investment Company Institute (ICI) (2005-2017); formerly Senior Economist and Director of Industry and Financial Analysis at the ICI (1998-2004); formerly Senior Economist, Industry and Financial Analysis at the ICI (1996-1998); formerly Staff Economist at the Federal Reserve Board (1989-1996); formerly Director, ICI Mutual Insurance Company (2012-2017). |
None. | Since March 2018 | |||
|
Independent Board Members
|
||||||
| Name Year of Birth Position(s) Portfolios Overseen |
Principal Occupation(s) During Past Five Years |
Other Directorships Held During Past Five Years |
Length of Board Service | |||
| Grace C. Torres 1959 Board Member Portfolios Overseen: 100 |
Retired; formerly Treasurer and Principal Financial and Accounting Officer of the PGIM Funds, Target Funds, Advanced Series Trust, Prudential Variable Contract Accounts and The Prudential Series Fund (1998-June 2014); Assistant Treasurer (March 1999-June 2014) and Senior Vice President (September 1999-June 2014) of PGIM Investments LLC; Assistant Treasurer (May 2003-June 2014) and Vice President (June 2005-June 2014) of AST Investment Services, Inc.; Senior Vice President and Assistant Treasurer (May 2003-June 2014) of Prudential Annuities Advisory Services, Inc. |
Director (since January 2018) of OceanFirst Financial Corp. and OceanFirst Bank; formerly Director (July 2015-January 2018) of Sun Bancorp, Inc. N.A. and Sun National Bank. | Since November 2014 | |||
Visit our website at pgim.com/investments
|
Interested Board Members
|
||||||
| Name Year of Birth Position(s) Portfolios Overseen |
Principal Occupation(s) During Past Five Years |
Other Directorships Held During Past Five Years |
Length of Board Service | |||
| Stuart S. Parker 1962 Board Member & President Portfolios Overseen: 100 |
President, Chief Executive Officer, Chief Operating Officer and Officer in Charge of PGIM Investments LLC (formerly known as Prudential Investments LLC) (since January 2012); President and Principal Executive Officer (“PEO”) (since September 2022) of the PGIM Private Credit Fund; President and PEO (since March 2022) of the PGIM Private Real Estate Fund, Inc.; formerly Executive Vice President of Jennison Associates LLC and Head of Retail Distribution of PGIM Investments LLC (June 2005-December 2011); Investment Company Institute - Board of Governors (since May 2012). |
None. | Since January 2012 | |||
| Scott E. Benjamin 1973 Board Member & Vice President Portfolios Overseen: 100 |
Executive Vice President (since May 2009) of PGIM Investments LLC; Vice President (since June 2012) of Prudential Investment Management Services LLC; Executive Vice President (since September 2009) of AST Investment Services, Inc.; Senior Vice President of Product Development and Marketing, PGIM Investments (since February 2006); Vice President (since September 2022) of the PGIM Private Credit Fund; Vice President (since March 2022) of the PGIM Private Real Estate Fund, Inc.; formerly Vice President of Product Development and Product Management, PGIM Investments LLC (2003-2006). |
None. | Since March 2010 | |||
|
Fund Officers(a)
|
||||
| Name Year of Birth Fund Position |
Principal Occupation(s) During Past Five Years | Length of Service as Fund Officer | ||
| Claudia DiGiacomo 1974 Chief Legal Officer |
Chief Legal Officer (since September 2022) of the PGIM Private Credit Fund; Chief Legal Officer (since July 2022) of the PGIM Private Real Estate Fund, Inc.; Chief Legal Officer, Executive Vice President and Secretary of PGIM Investments LLC (since August 2020); Chief Legal Officer of Prudential Mutual Fund Services LLC (since August 2020); Chief Legal Officer of PIFM Holdco, LLC (since August 2020); Vice President and Corporate Counsel (since January 2005) of Prudential; and Corporate Counsel of AST Investment Services, Inc. (since August 2020); formerly Vice President and Assistant Secretary of PGIM Investments LLC (2005-2020); formerly Associate at Sidley Austin Brown & Wood LLP (1999-2004). |
Since December 2005 | ||
| Andrew Donohue 1972 Chief Compliance Officer |
Chief Compliance Officer (since May 2023) of the PGIM Funds, Target Funds, PGIM ETF Trust, PGIM Global High Yield Fund, Inc., PGIM High Yield Bond Fund, Inc., PGIM Short Duration High Yield Opportunities Fund, Advanced Series Trust, The Prudential Series Fund, Prudential’s Gibraltar Fund, Inc., PGIM Private Credit Fund, PGIM Private Real Estate Fund, Inc.; Chief Compliance Officer of AST Investment Services, Inc. (since October 2022); Vice President, Chief Compliance Officer of PGIM Investments LLC (since September 2022); formerly various senior compliance roles within Principal Global Investors, LLC., global asset management for Principal Financial (2011-2022), most recently as Global Chief Compliance Officer (2016-2022). |
Since May 2023 | ||
| Andrew R. French 1962 Secretary |
Vice President (since December 2018) of PGIM Investments LLC; Secretary (since September 2022) of the PGIM Private Credit Fund; Secretary (since March 2022) of the PGIM Private Real Estate Fund, Inc.; formerly Vice President and Corporate Counsel (2010-2018) of Prudential; formerly Director and Corporate Counsel (2006-2010) of Prudential; Vice President and Assistant Secretary (since January 2007) of PGIM Investments LLC; Vice President and Assistant Secretary (since January 2007) of Prudential Mutual Fund Services LLC. |
Since October 2006 | ||
| Melissa Gonzalez 1980 Assistant Secretary |
Vice President and Corporate Counsel (since September 2018) of Prudential; Vice President and Assistant Secretary (since August 2020) of PGIM Investments LLC; Assistant Secretary (since September 2022) of the PGIM Private Credit Fund; Assistant Secretary (since March 2022) of the PGIM Private Real Estate Fund, Inc.; formerly Director and Corporate Counsel (March 2014-September 2018) of Prudential. |
Since March 2020 | ||
Visit our website at pgim.com/investments
|
Fund Officers(a)
|
||||
| Name Year of Birth Fund Position |
Principal Occupation(s) During Past Five Years | Length of Service as Fund Officer | ||
| Patrick E. McGuinness 1986 Assistant Secretary |
Vice President and Assistant Secretary (since August 2020) of PGIM Investments LLC; Director and Corporate Counsel (since February 2017) of Prudential; Assistant Secretary (since September 2022) of the PGIM Private Credit Fund; Assistant Secretary (since March 2022) of the PGIM Private Real Estate Fund, Inc. |
Since June 2020 | ||
| Debra Rubano 1975 Assistant Secretary |
Vice President and Corporate Counsel (since November 2020) of Prudential; Assistant Secretary (since September 2022) of the PGIM Private Credit Fund; Assistant Secretary (since March 2022) of the PGIM Private Real Estate Fund, Inc; formerly Director and Senior Counsel of Allianz Global Investors U.S. Holdings LLC (2010-2020) and Assistant Secretary of numerous funds in the Allianz fund complex (2015-2020). |
Since December 2020 | ||
| Kelly A. Coyne 1968 Assistant Secretary |
Director, Investment Operations of Prudential Mutual Fund Services LLC (since 2010); Assistant Secretary (since September 2022) of the PGIM Private Credit Fund; Assistant Secretary (since March 2022) of the PGIM Private Real Estate Fund, Inc. |
Since March 2015 | ||
| Christian J. Kelly 1975 Chief Financial Officer |
Vice President, Global Head of Fund Administration of PGIM Investments LLC (since November 2018); Chief Financial Officer (since March 2023) of PGIM Investments mutual funds, closed end funds and ETFs, Advanced Series Trust Portfolios, Prudential Series Funds and Prudential Gibraltar Fund; Chief Financial Officer of PGIM Private Credit Fund (since September 2022); Chief Financial Officer of PGIM Private Real Estate Fund, Inc. (since July 2022); formerly Treasurer and Principal Financial Officer (January 2019-March 2023) of PGIM Investments mutual funds, closed end funds and ETFs, Advanced Series Trust Portfolios, Prudential Series Funds and Prudential Gibraltar Fund; formerly Treasurer and Principal Financial Officer (March 2022 – July 2022) of the PGIM Private Real Estate Fund, Inc.; formerly Director of Fund Administration of Lord Abbett & Co. LLC (2009-2018), Treasurer and Principal Accounting Officer of the Lord Abbett Family of Funds (2017-2018); Director of Accounting, Avenue Capital Group (2008-2009); Senior Manager, Investment Management Practice of Deloitte & Touche LLP (1998-2007). |
Since January 2019 | ||
|
Fund Officers(a)
|
||||
| Name Year of Birth Fund Position |
Principal Occupation(s) During Past Five Years | Length of Service as Fund Officer | ||
| Russ Shupak 1973 Treasurer and Principal Accounting Officer |
Vice President (since 2017) within PGIM Investments Fund Administration; Treasurer and Principal Accounting Officer of PGIM Investments mutual funds, closed end funds and ETFs (since March 2023); Treasurer and Principal Accounting Officer (since July 2022) of the PGIM Private Real Estate Fund, Inc.; Assistant Treasurer (since September 2022) of the PGIM Private Credit Fund; formerly Assistant Treasurer (March 2022 – July 2022) of the PGIM Private Real Estate Fund, Inc.; Assistant Treasurer of Advanced Series Trust Portfolios, Prudential Series Funds and Prudential Gibraltar Fund (since October 2019); formerly Director (2013-2017) within PGIM Investments Fund Administration. |
Since October 2019 | ||
| Lana Lomuti 1967 Assistant Treasurer |
Vice President (since 2007) within PGIM Investments Fund Administration; formerly Assistant Treasurer (December 2007-February 2014) of The Greater China Fund, Inc.; formerly Director (2005-2007) within PGIM Investments Fund Administration. |
Since April 2014 | ||
| Deborah Conway 1969 Assistant Treasurer |
Vice President (since 2017) within PGIM Investments Fund Administration; Assistant Treasurer (since September 2022) of the PGIM Private Credit Fund; Assistant Treasurer (since March 2022) of the PGIM Private Real Estate Fund, Inc.; formerly Director (2007-2017) within PGIM Investments Fund Administration. |
Since October 2019 | ||
| Elyse M. McLaughlin 1974 Assistant Treasurer |
Vice President (since 2017) within PGIM Investments Fund Administration; Treasurer and Principal Accounting Officer of the Advanced Series Trust, the Prudential Series Fund and the Prudential Gibraltar Fund (since March 2023); Treasurer and Principal Accounting Officer (since September 2022) of the PGIM Private Credit Fund; Assistant Treasurer (since March 2022) of the PGIM Private Real Estate Fund, Inc.; Assistant Treasurer of PGIM Investments mutual funds, closed end funds and ETFs (since October 2019); formerly Director (2011-2017) within PGIM Investments Fund Administration. |
Since October 2019 | ||
| Robert W. McCormack 1973 Assistant Treasurer |
Vice President (since 2019) within PGIM Investments Fund Administration; Assistant Treasurer (Since March 2023) of PGIM Investments mutual funds, closed end funds, ETFs, Advanced Series Trust Portfolios, Prudential Series Funds and Prudential Gibraltar Fund; Assistant Treasurer (since September 2022) of the PGIM Private Credit Fund; Assistant Treasurer (since March 2022) of the PGIM Private Real Estate Fund, Inc.; formerly Director (2016-2019) within PGIM Investments Fund Administration; formerly Vice President within Goldman, Sachs & Co. Investment Management Controllers (2008- 2016), Assistant Treasurer of Goldman Sachs Family of Funds (2015-2016). |
Since March 2023 | ||
Visit our website at pgim.com/investments
|
Fund Officers(a)
|
||||
| Name Year of Birth Fund Position |
Principal Occupation(s) During Past Five Years | Length of Service as Fund Officer | ||
| Kelly Florio 1978 Anti-Money Laundering Compliance Officer |
Vice President, Corporate Compliance, Global Compliance Programs and Compliance Risk Management (since December 2021) of Prudential; formerly Head of Fraud Risk Management (October 2019 to December 2021) at New York Life Insurance Company; formerly Head of Key Risk Area Operations (November 2018 to October 2019), Director of the US Anti-Money Laundering Compliance Unit (2009-2018) and Bank Loss Prevention Associate (2006 -2009) at MetLife. |
Since June 2022 | ||
| (a) | Excludes Mr. Parker and Mr. Benjamin, interested Board Members who also serve as President and Vice President, respectively. |
Explanatory Notes to Tables:
| ∎ | Board Members are deemed to be “Interested,” as defined in the 1940 Act, by reason of their affiliation with PGIM Investments LLC and/or an affiliate of PGIM Investments LLC. |
| ∎ | Unless otherwise noted, the address of all Board Members and Officers is c/o PGIM Investments LLC, 655 Broad Street, Newark, New Jersey 07102-4410. |
| ∎ | There is no set term of office for Board Members or Officers. The Board Members have adopted a retirement policy, which calls for the retirement of Board Members on December 31 of the year in which they reach the age of 75. |
| ∎ | “Other Directorships Held” includes all directorships of companies required to register or file reports with the SEC under the 1934 Act (that is, “public companies”) or other investment companies registered under the 1940 Act. |
| ∎ | “Portfolios Overseen” includes all investment companies managed by PGIM Investments LLC. The investment companies for which PGIM Investments LLC serves as manager include the PGIM Mutual Funds, Target Funds, PGIM ETF Trust, PGIM Private Real Estate Fund, Inc., PGIM Private Credit Fund, PGIM High Yield Bond Fund, Inc., PGIM Global High Yield Fund, Inc., PGIM Short Duration High Yield Opportunities Fund, The Prudential Series Fund, Prudential’s Gibraltar Fund, Inc. and the Advanced Series Trust. |
| ∎ | As used in the Fund Officers table “Prudential” means The Prudential Insurance Company of America. |
Approval of Advisory Agreements (unaudited)
The Funds’ Boards of Trustees
The Boards of Trustees (the “Board”) of the PGIM Jennison Small-Cap Core Equity Fund, PGIM Core Conservative Bond Fund, PGIM TIPS Fund, PGIM Quant Solutions Commodity Strategies Fund, PGIM Quant Solutions US Broad Market Index Fund and PGIM Quant Solutions Mid-Cap Core Fund (each, a “Fund, and collectively, the “Funds”)1 consists of ten individuals, eight of whom are not “interested persons” of the Funds, as defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independent Trustees”). The Board is responsible for the oversight of each Fund and its operations, and performs the various duties imposed on the directors of investment companies by the 1940 Act. The Independent Trustees have retained independent legal counsel to assist them in connection with their duties. The Chair of the Board is an Independent Trustee. The Board has established five standing committees: the Audit Committee, the Nominating and Governance Committee, the Compliance Committee and two Investment Committees. Each committee is chaired by, and composed of, Independent Trustees.
Annual Approval of the Funds’ Advisory Agreements
As required under the 1940 Act, the Board determines annually whether to renew each Fund’s management agreement with PGIM Investments LLC (“PGIM Investments”) and each Fund’s subadvisory agreement with PGIM Quantitative Solutions LLC (“PGIM Quantitative Solutions”), Jennison Associates LLC (“Jennison”) and PGIM, Inc., (“PGIM”) on behalf of its PGIM Fixed Income unit, and PGIM Limited (collectively “PGIM Fixed Income”), as applicable. In considering the renewal of the agreements, the Board, including all of the Independent Trustees, met on May 25 and June 6-8, 2023 (the “Board Meeting”) and approved the renewal of the agreements through July 31, 2024, after concluding that the renewal of the agreements was in the best interests of each Fund and its shareholders.
In advance of the meetings, the Board requested and received materials relating to the agreements, and had the opportunity to ask questions and request further information in connection with its consideration. Among other things, the Board considered comparative fee information from PGIM Investments, PGIM Fixed Income, PGIM Quantitative Solutions and Jennison. Also, the Board considered comparisons with other mutual funds in relevant Peer Universes and Peer Groups, as is further discussed below.
In approving the agreements, the Board, including the Independent Trustees advised by independent legal counsel, considered the factors it deemed relevant, including the nature, quality and extent of services provided, the performance of each Fund, the profitability of PGIM Investments and its affiliates, expenses and fees, and the potential for economies of scale that may be shared with each Fund and its shareholders as each Fund’s assets grow. In their deliberations, the Trustees did not identify any single factor which alone was responsible for the Board’s decision to approve the agreements with
1 Each of the Funds is a series of Prudential Investment Portfolios 2
Approval of Advisory Agreements (continued)
respect to each Fund. In connection with its deliberations, the Board considered information provided by PGIM Investments throughout the year at regular Board meetings, presentations from portfolio managers and other information, as well as information furnished at or in advance of the Board Meeting.
The Trustees determined that the overall arrangements between each Fund and PGIM Investments, which serves as each Fund’s investment manager pursuant to a management agreement, and between PGIM Investments and each of PGIM Quantitative Solutions, Jennison and PGIM Fixed Income as applicable, each of which serves as each Fund’s subadviser pursuant to the terms of subadvisory agreements with PGIM Investments, are in the best interests of each Fund and its shareholders in light of the services performed, fees charged and such other matters as the Trustees considered relevant in the exercise of their business judgment.
The material factors and conclusions that formed the basis for the Trustees’ reaching their determinations to approve the continuance of the agreements are separately discussed below.
Nature, Quality and Extent of Services
The Board received and considered information regarding the nature, quality and extent of services provided to each Fund by PGIM Investments, PGIM Quantitative Solutions, Jennison and PGIM Fixed Income. The Board noted that PGIM Quantitative Solutions, Jennison and PGIM Fixed Income are affiliated with PGIM Investments. The Board considered the services provided by PGIM Investments, including but not limited to the oversight of the subadviser for each Fund, as well as the provision of fund recordkeeping, compliance and other services to each Fund, and PGIM Investments’ role as administrator of the Funds’ liquidity risk management program. With respect to PGIM Investments’ oversight of the subadvisers, the Board noted that PGIM Investments’ Strategic Investment Research Group (“SIRG”), which is a business unit of PGIM Investments, is responsible for monitoring and reporting to PGIM Investments’ senior management on the performance and operations of the subadvisers. The Board also considered that PGIM Investments pays the salaries of all of the officers and interested Trustees of the Funds who are part of Fund management. The Board also considered the investment subadvisory services provided by PGIM Quantitative Solutions, Jennison, and PGIM Fixed Income, including investment research and security selection, as well as adherence to each Fund’s investment restrictions and compliance with applicable Fund policies and procedures. The Board considered PGIM Investments’ evaluation of the subadvisers, as well as PGIM Investments’ recommendation, based on its review of the subadvisers, to renew the subadvisory agreements.
The Board considered the qualifications, backgrounds and responsibilities of PGIM Investments’ senior management responsible for the oversight of each Fund, PGIM Quantitative Solutions, Jennison, and PGIM Fixed Income and also considered the qualifications, backgrounds and responsibilities of the PGIM Quantitative Solutions,
Visit our website at pgim.com/investments
Jennison and PGIM Fixed Income portfolio managers who are responsible for the day-to-day management of each Fund’s portfolio. The Board was provided with information pertaining to PGIM Investments’, PGIM Quantitative Solutions’, Jennison’s and PGIM Fixed Income’s organizational structure, senior management, investment operations, and other relevant information pertaining to PGIM Investments, Jennison, PGIM Quantitative Solutions and PGIM Fixed Income. The Board also noted that it received favorable compliance reports from the Funds’ Chief Compliance Officer (“CCO”) as to each of PGIM Investments, PGIM Quantitative Solutions, Jennison and PGIM Fixed Income.
The Board concluded that it was satisfied with the nature, extent and quality of the investment management services provided by PGIM Investments and the subadvisory services provided to each Fund by PGIM Quantitative Solutions, Jennison, and PGIM Fixed Income and that there was a reasonable basis on which to conclude that each Fund benefits from the services provided by PGIM Investments, PGIM Quantitative Solutions, Jennison and PGIM Fixed Income under the management and subadvisory agreements.
Costs of Services and Profits Realized by PGIM Investments
The Board was provided with information on the profitability of PGIM Investments and its affiliates in serving as each Fund’s investment manager. The Board discussed with PGIM Investments the methodology utilized in assembling the information regarding profitability and considered its reasonableness. The Board recognized that it is difficult to make comparisons of profitability from fund management contracts because comparative information is not generally publicly available and is affected by numerous factors, including the structure of the particular adviser, the types of funds it manages, its business mix, numerous assumptions regarding allocations and the adviser’s capital structure and cost of capital. However, the Board considered that the cost of services provided by PGIM Investments during the year ended December 31, 2022 exceeded the management fees paid by each Fund, resulting in an operating loss to PGIM Investments. Taking these factors into account, the Board concluded that the profitability of PGIM Investments and its affiliates in relation to the services rendered was not unreasonable.
Economies of Scale
The Board received and discussed information concerning economies of scale that PGIM Investments may realize as each Fund’s assets grow beyond current levels. During the course of time, the Board has considered information regarding the launch date of each Fund, the management fees of each Fund compared to those of similarly managed funds and PGIM Investments’ investment in each Fund over time. The Board noted that, while the management fee schedule for each Fund does not have breakpoints in its management fees, economies of scale can be shared with each Fund in other ways, including low management fees from inception, additional technological and personnel investments to enhance shareholder services, and maintaining existing
Approval of Advisory Agreements (continued)
expense structures in the face of a rising cost environment. The Board also considered PGIM Investments’ assertion that it continually evaluates the management fee schedule of each Fund and the potential to share economies of scale through breakpoints or fee waivers as asset levels increase.
The Board recognized the inherent limitations of any analysis of economies of scale, stemming largely from the Board’s understanding that most of PGIM Investments’ costs are not specific to individual funds, but rather are incurred across a variety of products and services.
Other Benefits to PGIM Investments, PGIM Quantitative Solutions, Jennison and PGIM Fixed Income
The Board considered potential ancillary benefits that might be received by PGIM Investments, PGIM Quantitative Solutions, Jennison, PGIM Fixed Income and their affiliates as a result of their relationship with each Fund. The Board concluded that potential benefits to be derived by PGIM Investments included transfer agency fees received by each Fund’s transfer agent (which is affiliated with PGIM Investments), and benefits to its reputation as well as other intangible benefits resulting from PGIM Investments’ association with the Funds. The Board concluded that the potential benefits to be derived by PGIM Quantitative Solutions and Jennison included their ability to use soft dollar credits, as well as the potential benefits consistent with those generally resulting from an increase in assets under management, specifically, potential access to additional research resources and benefits to their reputations. The Board concluded that the benefits derived by PGIM Investments, PGIM Quantitative Solutions, Jennison and PGIM Fixed Income were consistent with the types of benefits generally derived by investment managers and subadvisers to mutual funds.
Performance of the Funds / Fees and Expenses
The Board considered certain additional factors and made related conclusions relating to the historical performance of each Fund for the one-year and the three-year periods ended December 31, 2022.
The Board also considered each Fund’s actual management fee, as well as each Fund’s net total expense ratio, for the fiscal year ended July 31, 2022. The Board considered the management fee for each Fund as compared to the management fee charged by PGIM Investments to other funds and the fee charged by other advisers to comparable mutual funds in a Peer Group. The actual management fee represents the fee rate actually paid by Fund shareholders and includes any fee waivers or reimbursements. The net total expense ratio for each Fund represents the actual expense ratio incurred by Fund shareholders.
The mutual funds included in the Peer Universe, which was used to consider performance, and the Peer Group, which was used to consider expenses and fees, for each Fund were objectively determined by Broadridge, an independent provider of mutual fund data. In certain circumstances, PGIM Investments also provided
Visit our website at pgim.com/investments
supplemental Peer Universe or Peer Group information, for reasons addressed with the Board. The comparisons placed each Fund in various quartiles over various periods, with the first quartile being the best 25% of the mutual funds (for performance, the best performing mutual funds and, for expenses, the lowest cost mutual funds).
The section below summarizes key factors considered by the Board and the Board’s conclusions regarding each Fund’s performance, fees and overall expenses. For each Fund, the table sets forth net performance comparisons (which reflect the impact on performance of any subsidies, expense caps or waivers that may be applicable) with the Peer Universe, actual management fees with the Peer Group (which reflect the impact of fund expenses, or any subsidies or fee waivers), and net total expenses with the Peer Group, each of which were key factors considered by the Board.
PGIM Quant Solutions US Broad Market Index Fund
| Net Performance | 1 Year | 3 Years | 5 Years | 10 Years | ||||
| 2nd Quartile | 1st Quartile | 1st Quartile | N/A | |||||
| Actual Management Fees: 1st Quartile | ||||||||
| Net Total Expenses: 2nd Quartile | ||||||||
| ● | The Board noted that the Fund underperformed its benchmark index over the one-, three-, and five-year periods. |
| ● | The Board noted PGIM Investments’ assertion that the Fund’s performance is consistent with the Fund’s objective and exhibits a similar composition and high correlation to the S&P Composite 1500 Index, minus expenses. |
| ● | The Board and PGIM Investments agreed to retain the existing contractual cap on Fund expenses, which (exclusive of certain fees and expenses) caps total annual operating expenses at 0.20% for Class R6 shares through November 30, 2023. |
| ● | The Board concluded that, in light of the above, it would be in the best interests of the Fund and its shareholders to renew the agreements. |
| ● | The Board concluded that the management fees (including subadvisory fees) and total expenses were reasonable in light of the services provided. |
PGIM Quant Solutions Mid-Cap Core Fund
| Net Performance | 1 Year | 3 Years | 5 Years | 10 Years | ||||
| 2nd Quartile | 3rd Quartile | 4th Quartile | N/A | |||||
| Actual Management Fees: 1st Quartile | ||||||||
| Net Total Expenses: 3rd Quartile | ||||||||
| ● | The Board noted that the Fund outperformed its benchmark index over the one-year period, and underperformed its benchmark index over the three- and five-year periods. |
Approval of Advisory Agreements (continued)
| ● | The Board considered PGIM Investments’ assertions that the Fund’s value style factor was the chief driver of outperformance, followed by positive contributions from the quality factor. |
| ● | The Board and PGIM Investments agreed to retain the existing contractual cap on Fund expenses, which (exclusive of certain fees and expenses) caps total annual operating expenses at 0.80% for Class R6 shares through November 30, 2023. |
| ● | The Board concluded that, in light of the above, it would be in the best interests of the Fund and its shareholders to renew the agreements. |
| ● | The Board concluded that the management fees (including subadvisory fees) and total expenses were reasonable in light of the services provided. |
PGIM Jennison Small-Cap Core Equity Fund
| Net Performance | 1 Year | 3 Years | 5 Years | 10 Years | ||||
| 4th Quartile | 1st Quartile | 1st Quartile | N/A | |||||
| Actual Management Fees: 1st Quartile | ||||||||
| Net Total Expenses: 2nd Quartile | ||||||||
| ● | The Board noted that the Fund outperformed its benchmark index over the three- and five-year periods and underperformed the benchmark index over the one-year period. |
| ● | The Board noted that PGIM Investments is encouraged by the Fund’s strong returns over the long term as demonstrated by its three- and five-year performance. |
| ● | The Board and PGIM Investments agreed to retain the existing contractual cap on Fund expenses, which (exclusive of certain fees and expenses) caps total annual operating expenses at 0.95% for Class R6 shares through November 30, 2023. |
| ● | The Board concluded that, in light of the above, it would be in the best interests of the Fund and its shareholders to renew the agreements. |
| ● | The Board concluded that the management fees (including subadvisory fees) and total expenses were reasonable in light of the services provided. |
PGIM Core Conservative Bond Fund
| Net Performance | 1 Year | 3 Years | 5 Years | 10 Years | ||||
| 3rd Quartile | 4th Quartile | 4th Quartile | N/A | |||||
| Actual Management Fees: 2nd Quartile | ||||||||
| Net Total Expenses: 4th Quartile | ||||||||
| ● | The Board noted that the Fund underperformed its benchmark index over all periods. |
| ● | The Board considered PGIM Investments’ assertions that, relative to its peer group, which has the flexibility to invest in emerging markets and below investment grade debt, the Fund’s more conservative investment approach limits exposure to these sectors, which can limit peer relative results. |
Visit our website at pgim.com/investments
| ● | The Board also considered that the Fund outperformed its peer group average and performed within three basis points of its benchmark index for the fourth quarter of 2022 (gross of fees), and outperformed its peer group average and benchmark index for the first quarter of 2023 (both gross and net of fees). |
| ● | The Board also considered that a portfolio manager was added to the investment team in 2021. |
| ● | The Board and PGIM Investments agreed to retain the existing contractual cap on Fund expenses, which (exclusive of certain fees and expenses) caps total annual operating expenses at 0.50% for Class R6 shares through November 30, 2023. |
| ● | The Board concluded that, in light of the above, it would be in the best interests of the Fund and its shareholders to renew the agreements. |
| ● | The Board concluded that the management fees (including subadvisory fees) and total expenses were reasonable in light of the services provided. |
PGIM TIPS Fund
| Net Performance | 1 Year | 3 Years | 5 Years | 10 Years | ||||
| 3rd Quartile | 3rd Quartile | 3rd Quartile | N/A | |||||
| Actual Management Fees: 2nd Quartile | ||||||||
| Net Total Expenses: 2nd Quartile | ||||||||
| ● | The Board noted that the Fund underperformed its benchmark index over all periods. |
| ● | The Board also considered that the Fund outperformed its benchmark index and peer group for the first quarter of 2023 (ranking in the 20th percentile) and outperformed its peer group average for the five-year period ended March 31, 2023. and the Board further noted that the Fund has outperformed its peer group median in four out of the six calendar years since its inception. |
| ● | The Board and PGIM Investments agreed to retain the existing contractual cap on Fund expenses, which (exclusive of certain fees and expenses) caps total annual operating expenses at 0.40% for Class R6 shares through November 30, 2023. |
| ● | The Board concluded that, in light of the above, it would be in the best interests of the Fund and its shareholders to renew the agreements. |
| ● | The Board concluded that the management fees (including subadvisory fees) and total expenses were reasonable in light of the services provided. |
PGIM Quant Solutions Commodity Strategies Fund
| Net Performance | 1 Year | 3 Years | 5 Years | 10 Years | ||||
| 2nd Quartile | 2nd Quartile | 2nd Quartile | N/A | |||||
| Actual Management Fees: 1st Quartile | ||||||||
| Net Total Expenses: 2nd Quartile | ||||||||
Approval of Advisory Agreements (continued)
| ● | The Board noted that the Fund outperformed its benchmark index over the one-, three- and five-year periods. |
| ● | The Board and PGIM Investments agreed to retain the existing contractual cap on Fund expenses, which (exclusive of certain fees and expenses) caps total annual operating expenses at 0.70% for Class R6 shares and 0.70% for Class Z shares through November 30, 2023. In addition, PGIM Investments has agreed that total annual fund operating expenses for Class R6 shares will not exceed total annual fund operating expenses for Class Z shares. |
| ● | The Board concluded that, in light of the above, it would be in the best interests of the Fund and its shareholders to renew the agreements. |
| ● | The Board concluded that the management fees (including subadvisory fees) and total expenses were reasonable in light of the services provided. |
* * *
After full consideration of these factors, the Board concluded that approval of the agreements was in the best interests of each Fund and its shareholders.
Visit our website at pgim.com/investments
|
|
∎ 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 Funds’ subadvisers the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Funds. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852 or by visiting the Securities and Exchange Commission’s website at sec.gov. Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Funds’ website and on the Securities and Exchange Commission’s website. |
|
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, Chief Financial Officer · Claudia DiGiacomo, Chief Legal Officer · Andrew Donohue, Chief Compliance Officer · Russ Shupak, Treasurer and Principal Accounting Officer · Kelly Florio, Anti-Money Laundering Compliance Officer · Andrew R. French, Secretary · Melissa Gonzalez, Assistant Secretary · Kelly A. Coyne, Assistant Secretary · Patrick E. McGuinness, Assistant Secretary · Debra Rubano, Assistant Secretary · Lana Lomuti, Assistant Treasurer · Elyse M. McLaughlin, Assistant Treasurer · Deborah Conway, Assistant Treasurer · Robert W. McCormack, Assistant Treasurer |
| MANAGER |
PGIM Investments LLC | 655 Broad Street Newark, NJ 07102
| ||
| SUBADVISERS(as applicable) |
PGIM Quantitative Solutions LLC |
655 Broad Street 16th Floor Newark, NJ 07102
| ||
|
Jennison Associates LLC |
466 Lexington Avenue New York, NY 10017
| |||
|
PGIM Fixed Income |
655 Broad Street Newark, NJ 07102 | |||
|
PGIM Limited |
Grand Buildings, 1-3 Strand Trafalgar Square London, WC2N 5HR United Kingdom
| |||
| 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 534432 Pittsburgh, PA 15253
| ||
| 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 each Fund carefully before investing. The prospectus contains this and other information about the Funds. An investor may obtain a prospectus by visiting our website at pgim.com/investments or by calling (800) 225-1852. The prospectus should be read carefully before investing. |
| E-DELIVERY |
|
To receive your 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 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 Jennison Small-Cap Core Equity Fund, PGIM Core Conservative Bond Fund, PGIM TIPS Fund, PGIM Quant Solutions Commodity Strategies Fund, PGIM Quant Solutions Mid-Cap Core Fund and PGIM Quant Solutions US Broad Market Index Fund c/o 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 to the Board or individual Trustees are not screened before being delivered to the addressee. |
|
AVAILABILITY OF PORTFOLIO HOLDINGS
|
| Each Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission on Form N-PORT. Each Funds’ 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 Funds’ 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. |
| The Fund’s Statement of Additional Information contains additional information about the Fund’s Trustees and is available without charge, upon request, by calling (800) 225-1852. |
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 JENNISON SMALL-CAP CORE EQUITY FUND, PGIM CORE CONSERVATIVE BOND FUND, PGIM TIPS FUND, PGIM QUANT SOLUTIONS COMMODITY STRATEGIES FUND, PGIM QUANT SOLUTIONS MID-CAP CORE FUND, AND PGIM QUANT SOLUTIONS US BROAD MARKET INDEX FUND
| NASDAQ | CUSIP | NASDAQ | CUSIP | |||||||
| PGIM JENNISON SMALL-CAP CORE EQUITY FUND |
PQJCX | 74440E805 | PGIM QUANT SOLUTIONS COMMODITY STRATEGIES FUND (Class R6) | PQCMX | 74440E862 | |||||
| PGIM CORE CONSERVATIVE BOND FUND |
PQCNX | 74440E888 | PGIM QUANT SOLUTIONS MID-CAP CORE FUND | PQCCX | 74440E508 | |||||
| PGIM TIPS FUND |
PQTSX | 74440E870 | PGIM QUANT SOLUTIONS US BROAD MARKET INDEX FUND | PQBMX | 74440E409 | |||||
| PGIM QUANT SOLUTIONS COMMODITY STRATEGIES FUND (Class Z) |
PQCZX | 74440E854 | ||||||||
|
MF242E |
Item 2 – Code of Ethics — See Exhibit (a)
As of the end of the period covered by this report, the registrant has adopted a code of ethics (the “Section 406 Standards for Investment Companies – Ethical Standards for Principal Executive and Financial Officers”) that applies to the registrant’s Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer.
The registrant hereby undertakes to provide any person, without charge, upon request, a copy of the code of ethics. To request a copy of the code of ethics, contact the registrant 800-225-1852, and ask for a copy of the Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers.
Item 3 – Audit Committee Financial Expert –
The registrant’s Board has determined that Ms. Grace C. Torres, member of the Board’s Audit Committee is an “audit committee financial expert,” and that she is “independent,” for purposes of this item.
Item 4 – Principal Accountant Fees and Services –
(a) Audit Fees
For the fiscal years ended July 31, 2023 and July 31, 2022, PricewaterhouseCoopers LLP (“PwC”), the Registrant’s principal accountant, billed the Registrant $188,900 and $191,900, respectively, for professional services rendered for the audit of the Registrant’s annual financial statements or services that are normally provided in connection with statutory and regulatory filings.
(b) Audit-Related Fees
For the fiscal years ended July 31, 2023 and July 31, 2022: none.
(c) Tax Fees
For the fiscal years ended July 31, 2023 and July 31, 2022: none.
(d) All Other Fees
For the fiscal years ended July 31, 2023 and July 31, 2022: none.
(e) (1) Audit Committee Pre-Approval Policies and Procedures
THE PGIM MUTUAL FUNDS
AUDIT COMMITTEE POLICY
on
Pre-Approval of Services Provided by the Independent
Accountants
The Audit Committee of each PGIM Mutual Fund is charged with the responsibility to monitor the independence of the Fund’s independent accountants. As part of this responsibility, the Audit Committee must pre-approve the independent accounting firm’s engagement to render audit and/or permissible non-audit services, as required by law. In evaluating a proposed engagement of the independent accountants, the Audit Committee will assess the effect that the engagement might reasonably be expected to have on the accountant’s independence. The Committee’s evaluation will be based on:
| • | a review of the nature of the professional services expected to be provided, |
| • | a review of the safeguards put into place by the accounting firm to safeguard independence, and |
| • | periodic meetings with the accounting firm. |
Policy for Audit and Non-Audit Services Provided to the Funds
On an annual basis, the scope of audits for each Fund, audit fees and expenses, and audit-related and non-audit services (and fees proposed in respect thereof) proposed to be performed by the Fund’s independent accountants will be presented by the Treasurer and the independent accountants to the Audit Committee for review and, as appropriate, approval prior to the initiation of such services.
Such presentation shall be accompanied by confirmation by both the Treasurer and the independent accountants that the proposed
non-audit services will not adversely affect the independence of the independent accountants. Such proposed non-audit services shall be described in sufficient detail to enable the Audit Committee to assess the appropriateness of such services and fees, and the compatibility of the provision of such services with the auditor’s independence. The Committee shall receive periodic reports on the progress of the audit and other services which are approved by the Committee or by the Committee Chair pursuant to authority delegated in this Policy.
The categories of services enumerated under “Audit Services”, “Audit-related Services”, and “Tax Services” are intended to provide guidance to the Treasurer and the independent accountants as to those categories of services which the Committee believes are generally consistent with the independence of the independent accountants and which the Committee (or the Committee Chair) would expect upon the presentation of specific proposals to pre-approve. The enumerated categories are not intended as an exclusive list of audit, audit-related or tax services, which the Committee (or the Committee Chair) would consider for pre-approval.
Audit Services
The following categories of audit services are considered to be consistent with the role of the Fund’s independent accountants:
| • | Annual Fund financial statement audits |
| • | Seed audits (related to new product filings, as required) |
| • | SEC and regulatory filings and consents |
Audit-related Services
The following categories of audit-related services are considered to be consistent with the role of the Fund’s independent accountants:
| • | Accounting consultations |
| • | Fund merger support services |
| • | Agreed Upon Procedure Reports |
| • | Attestation Reports |
| • | Other Internal Control Reports |
Individual audit-related services that fall within one of these categories (except for fund merger support services) and are not presented to the Audit Committee as part of the annual pre-approval process are subject to an authorized pre-approval by the Audit Committee so long as the estimated fee for those services does not exceed $30,000. Any services provided under such pre-approval will be reported to the Audit Committee at its next regular meeting. Should the amount of such services exceed $30,000 any additional fees will be subject to pre-approval by the Committee Chair (or any other Committee member on whom this responsibility has been delegated). Fees related to fund merger support services are subject to a separate authorized pre-approval by the Audit Committee with fees determined on a per occurrence and merger complexity basis.
Tax Services
The following categories of tax services are considered to be consistent with the role of the Fund’s independent accountants:
| • | Tax compliance services related to the filing or amendment of the following: |
| • | Federal, state and local income tax compliance; and, |
| • | Sales and use tax compliance |
| • | Timely RIC qualification reviews |
| • | Tax distribution analysis and planning |
| • | Tax authority examination services |
| • | Tax appeals support services |
| • | Accounting methods studies |
| • | Fund merger support services |
| • | Tax consulting services and related projects |
Individual tax services that fall within one of these categories and are not presented to the Audit Committee as part of the annual pre-approval process are subject to an authorized pre-approval by the Audit Committee so long as the estimated fee for those services does not exceed $30,000. Any services provided under such pre-approval will be reported to the Audit Committee at its next regular meeting. Should the amount of such services exceed $30,000 any additional fees will be subject to pre-approval by the Committee Chair (or any other Committee member on whom this responsibility has been delegated).
Other Non-Audit Services
Certain non-audit services that the independent accountants are legally permitted to render will be subject to pre-approval by the Committee or by one or more Committee members to whom the Committee has delegated this authority and who will report to the full Committee any pre-approval decisions made pursuant to this Policy. Non-audit services presented for pre-approval pursuant to this paragraph will be accompanied by a confirmation from both the Treasurer and the independent accountants that the proposed services will not adversely affect the independence of the independent accountants.
Proscribed Services
The Fund’s independent accountants will not render services in the following categories of non-audit services:
| • | Bookkeeping or other services related to the accounting records or financial statements of the Fund |
| • | Financial information systems design and implementation |
| • | Appraisal or valuation services, fairness opinions, or contribution-in-kind reports |
| • | Actuarial services |
| • | Internal audit outsourcing services |
| • | Management functions or human resources |
| • | Broker or dealer, investment adviser, or investment banking services |
| • | Legal services and expert services unrelated to the audit |
| • | Any other service that the Public Company Accounting Oversight Board determines, by regulation, is impermissible. |
Pre-approval of Non-Audit Services Provided to Other Entities Within the PGIM Fund Complex
Certain non-audit services provided to PGIM Investments LLC or any of its affiliates that also provide ongoing services to the PGIM Mutual Funds will be subject to pre-approval by the Audit Committee. The only non-audit services provided to these entities that will require pre-approval are those related directly to the operations and financial reporting of the Funds. Individual projects that are not presented to the Audit Committee as part of the annual pre-approval process will be subject to pre-approval by the Committee Chair (or any other Committee member on whom this responsibility has been delegated) so long as the estimated fee for those services does not exceed $30,000. Services presented for pre-approval pursuant to this paragraph will be accompanied by a confirmation from both the Treasurer and the independent accountants that the proposed services will not adversely affect the independence of the independent accountants.
Although the Audit Committee will not pre-approve all services provided to PGIM Investments LLC and its affiliates, the Committee will receive an annual report from the Fund’s independent accounting firm showing the aggregate fees for all services provided to PGIM Investments and its affiliates.
(e) (2) Percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X –
|
Fiscal Year Ended July 31, 2023 |
Fiscal Year Ended July 31, 2022 |
|||||||||
| 4(b) | Not applicable. | Not applicable. | ||||||||
| 4(c) | Not applicable. | Not applicable. | ||||||||
| 4(d) | Not applicable. | Not applicable. |
(f) Percentage of hours expended attributable to work performed by other than full time employees of principal accountant if greater than 50%.
The percentage of hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees was 0%.
(g) Non-Audit Fees
The aggregate non-audit fees billed by the Registrant’s principal accountant for services rendered to the registrant’s investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant for the fiscal years ended July 31, 2023 and July 31, 2022 was $0 and $0, respectively.
(h) Principal Accountant’s Independence
Not applicable as the Registrant’s principal accountant has not provided non-audit services to the registrant’s investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X.
(i) Not applicable.
(j) Not applicable.
Item 5 – Audit Committee of Listed Registrants – Not applicable.
Item 6 – Schedule of Investments – The schedule is included as part of the report to shareholders filed under Item 1 of
this Form.
Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not applicable.
Item 8 – Portfolio Managers of Closed-End Management Investment Companies – Not applicable.
Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not applicable.
Item 10 – Submission of Matters to a Vote of Security Holders – There have been no material changes to these procedures.
Item 11 – Controls and Procedures
| (a) | It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure. |
| (b) | There has been no significant change in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12 – Controls and Procedures - Disclosure of Securities Lending Activities for Closed-End Management Investment Companies – Not applicable.
Item 13 – Exhibits
(a)(1) Code of Ethics – Attached hereto as Exhibit EX-99.CODE-ETH.
(a)(2)(1) Any written solicitation to purchase securities under Rule 23c-1 – Not applicable.
(a)(2)(2) Change in the registrant’s independent public accountant – Not applicable.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Registrant | Prudential Investment Portfolios 2 | |
| By: | /s/ Andrew R. French | |
| Andrew R. French | ||
| Secretary | ||
| Date: | September 19, 2023 | |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By: | /s/ Stuart S. Parker | |
| Stuart S. Parker | ||
| President and Principal Executive Officer | ||
| Date: | September 19, 2023 | |
| By: | /s/ Christian J. Kelly | |
| Christian J. Kelly | ||
| Chief Financial Officer (Principal Financial Officer) | ||
| Date: | September 19, 2023 | |